Bitcoin is back at $9,200 Thursday as crypto derivatives helped push its price down and equities closed lower.
- Bitcoin (BTC) trading around $9,211 as of 20:00 UTC (4 p.m. ET), slipping 2.3% over the previous 24 hours.
- Bitcoin’s 24-hour range: $9,154-$9,469
- BTC below 10-day and 50-day moving average, a bearish signal for market technicians.
When stocks overall trend lower, it often leads to bitcoin prices dropping, said Karl Samsen of Global Digital Assets. He added that as public companies continue to release their dismal quarterly business results, equities will drop even more. “We’re seeing a W-effect in terms of the COVID-19 reopening” of the economy, he told CoinDesk. Thus, the stock markets aren’t performing well Thursday.
Read More: Bitcoin Started Moving in Sync With S&P 500, Volume Dropped, in June
As spot bitcoin headed lower Thursday, the cryptocurrency derivatives market saw its first excitement in a week as sell liquidations popped up on BitMEX. Traders who were long bitcoin saw over $20 million in BitMEX positions exited as price dropped on the spot exchanges such as Coinbase.
Meanwhile, traders continue to place fewer bitcoin option bets, a sign they don’t expect crypto volatility to return – at least not yet, according to Vishal Shah, an options trader and founder of exchange Alpha5.
“When volatility is much lower, as it is now, there is no natural game,” said Shah. “It’s not worth it to sell options down here, and hence activity comes to a standstill,” he added. Indeed, the volume on options market is much lower, and the amount of traders using the commodities exchange CME for bitcoin options have dried up in July.
“Honestly, it is frustrating for all of us – lower volatility and a narrower range,” said Christopher Thomas of cryptocurrency broker Swissquote. “We’ll likely explode out of it at some point. We need a trigger.”
Nevertheless, things change, especially in uncertain times, said George Clayton, managing partner of New York-based Cryptanalysis Capital. “Crypto never stays in one place for long,” Clayton said. “I don’t like the technical picture, but a big move in either direction wouldn’t surprise me.”
Curve’s value on the rise
Ether (ETH), the second-largest cryptocurrency by market capitalization, was down Thursday, trading around $239 and slipping 3.6% in 24 hours as of 20:00 UTC (4:00 p.m. ET).
The total value locked in Curve is $71 million, the second-highest for a decentralized exchange, or DEX. Curve is used to quickly trade between stablecoins and has $12 million in daily trading volume, just behind Uniswap for DEXs.
Peter Chan, a…