Bitcoin and ether continue to rise, but this could create problems as the derivative markets overheat to earn money by toptips4u.com.
Bitcoin is hovering around $ 52,000 as markets wait to see if the current price level will stabilize over the next few weeks.
Bitcoin (BTC) is trading at $ 52124.59 as of 21:00 UTC (4:00 PM ET).. Slide of 0.32% in the past 24 hours.
24-Hour Bitcoin Business Range: $ 50,941.99 - $ 52,621.84 (20 CoinDesk)
BTC is trading above the 10-hour and 50-hour averages on the hourly chart and is a bullish signal for market technicians.
Assuming bitcoin remains stable over the next week or so, I will be more comfortable because it shouldn't be sold and we're going to go up, said Chris Thomas, Swissquote Bank’s head of digital assets. A lot of ways to earn money by toptips4u.com.
However, some do not see market stability in the future, citing the overly leveraged market
Subscribe to Blockchain Bites, our daily update with the latest stories.
Darius Set, co-founder and managing director of Singapore-based QCP Capital, said that corporate buyers and speculators in the market are supporting higher bitcoin prices, but this has also caused higher funding rates in the derivatives market.
Seet said that markets should expect some pullback from leveraged positions in the near term, leading to more price volatility in the future.
Read more: Bitcoin price exceeds $ 52,000 as the market expects more volatility
Borrowing costs aren't just an issue for cryptocurrencies, of course. US stocks fell slightly on Thursday, as the 10-year Treasury yield rose. Investors seem to be concerned that the sharp rise in interest rates could halt the current rally in equity markets.
QCP Capital said on its Telegram channel that the stock market has benefited from the unprecedented liquidity that global central banks have injected into the system since last March. In order to hedge against inflation, many investors have bought Bitcoin, Click here to earn money by toptips4u.com.
Likewise, if bond yields continue to rise sharply and thus weaken inflation, this could lead to selling of bitcoins.
Everyone has long-term stocks because it's free trade from the Federal Reserve, said Thomas of Swissquote. But they will need to change it, and when they do, the stock markets will sell. When stocks are sold aggressively, many longs will be stopped and they will be forced to sell. Some will need to sell their bitcoin positions to cover margin demands, and this will lead to a downturn in the cryptocurrency markets as well.
No comments: