Bitcoin Remains Stable At $29.2K, Asia Session Shows Limited Market Activity
According to Bitcoin analysts, the largest cryptocurrency by market capitalization is anticipated to stay rangebound at a little higher than $29,000.
The world’s largest digital asset, Bitcoin, increased by 0.32% to $29,186.24 during the Asia trading session, while Ether decreased by 0.18% to $1,832.
Since the anticipation surrounding a new batch of bitcoin exchange-traded fund (ETF) applications abated, the cryptocurrency market has been broadly stable over the past few weeks.
On-chain data, however, indicates that this might soon alter. As reported by CoinDesk, recent data from Glassnode suggests a decline in long-term Bitcoin holders, notably those who kept the cryptocurrency for 12 to 24 months and 5 to 7 years.
The trading volume of cryptocurrency options increased by 24% on the Chicago Mercantile Exchange, with Ether options leaping 60% and Bitcoin options rising 16.6%, suggesting institutional investors may be utilizing options as a hedge against market uncertainty.
Altcoin Exchange Slows Down
Tokens of Cardano, Solana, Polygon, ADA, SOL, MATIC Lose Over 2.5%. Uniswap’s Native Crypto, UNI, Also Drops by More Than 1.3%.
CoinDesk Market Index Shows a 0.52% Increase, Reflecting Crypto Market Success.
Bob Baxley, a pivotal contributor to Maverick Protocol, a provider of DeFi infrastructure, stated in an email to CoinDesk, “I suspect that we will trend sideways for a good long while, perhaps for the next few months or even well into next year.” “There isn’t enough fresh capital flowing into the space at the moment for a meaningful rally.”
However, Baxley noted with optimism that changing circumstances would result in “an inflow of both users and new capital.”
“I say this because Ethereum is seeing its foundations become sturdier and its applications more sophisticated and increasingly friendly for users,” he wrote.
Bond returns increased while U.S. share markets framed marginally lower, indicating investors’ appetite for risky assets is waning. The tech-heavy Nasdaq Composite and the S&P 500 finished lower by 0.3% and 0.1%, respectively.
Brent Xu, CEO and co-founder of Web3 bond-market platform Umee stated in an email to CoinDesk that there is a low likelihood that cryptocurrency prices will increase for an extended time “until the macro environment softens more,” which includes an end to the interest rate hikes that have characterized central banking policy for more than 16 months.
“We are certainly close to peak rates, though we could have another hike or two ahead of us depending on how sticky inflation actually is,” Xu wrote. “I’m not convinced inflation is falling as fast as many are hoping. In short, we have a long way to go before we enter the optimistic phase of the cycle.”
Xu stated: “We experienced such a meteoric surge…, especially with Bitcoin, that I don’t know how these levels can be sustained, let alone surpassed in a meaningful way. We’re left with money already in the digital asset ecosystem just getting recycled through various coins over and again, as has happened in previous down markets.”
