Market Wrap: Bitcoin Crosses $ 41.9K As Interest On Ether Futures Rises 85% So Far In 2021

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Bitcoin hit a new all-time high on Friday as investors continued to claw back some of its limited supply. The ether futures market has also hit record highs as derivatives traders uncover the second largest cryptocurrency by market cap.

  • Bitcoin (BTC) is trading around $ 39,304 at 9:00 p.m. UTC (4:00 p.m. ET). Gain 0.64% over the last 24 hours.
  • 24 Hour Bitcoin Range: $ 36,579 – $ 41,962 (CoinDesk 20)
  • BTC below the 10 hour mark but above the 50 hour moving average on the hourly chart, a side signal for market technicians.
Bitcoin trading on Bitstamp since January 5.
La source: TradingView

New all-time highs are the topic of the day again Friday, the third day in a row the price of bitcoin hit an all-time high. At around 3:00 p.m. UTC (10:00 a.m.ET), the price of bitcoin changed hands to $ 41,962, according to data from CoinDesk 20. The price has since fallen, to $ 39,304 at the time of publication.

Read more: Over $ 41,000: Bitcoin Continues To Forge New Highs

“BTC is currently pricing with high demand and limited supply,” Joel Edgerton, COO of Bitflyer USA. “Anyone who has bitcoin thinks it will go higher, so they’re holding on.”

According to data aggregator Glassnode, the current supply of bitcoin in circulation is 18,594,037 BTC – and investors apparently can’t get enough of the world’s oldest cryptocurrency.

“The continued and relentless money from institutional buyers and some retail buyers to BTC provides a significant positive drift,” said Chad Steinglass, head of trading for derivatives firm CrossTower. “As more and more coins are locked into long-term investments and are essentially withdrawn from circulation, the stocks on hand are increasingly tight.

Bitcoin in circulation provides the last five years (orange) overlaid with prices – the dotted lines halve the events.
La source: Glassnode

“Everyone without BTC is afraid of missing out and wants to buy,” Bitflyer’s Edgerton added. “Loan [U.S. dollar] stablecoins to buy BTC is the crypto carry trade. ”

The three major stablecoins – the tie (USDT), the US dollar coin (USDC) and the dai (DAI) – collectively have a market cap of $ 28 billion, much of which is a tie – $ 229,169,929,558 , according to CoinGecko.

Market capitalization and volume of Tether last year.
La source: CoinGecko

“The doors are completely open and buying pressure has grown massively this year based on macroeconomic cycles, COVID-19, the US election and a general sense of anxiety,” said Henrik Kugelberg, an over-the-counter bitcoin trader. . “In the short term, I expect a pullback of maybe 15%, but that will only be a bump in the massive bull run – $ 100,000 this year is very possible!”

Read more: Why Joe Biden’s $ 3T Stimulus Package Could Add Fuel to Bitcoin’s Rally

Action in the Bitcoin derivatives market has also been heavy. Jason Lau, chief operating officer of the San Francisco-based OKCoin exchange, noted that nearly $ 1 billion in liquidations took place on Thursday. “The majority of these liquidations were long and it was the third highest amount since November.”

At BitMEX alone, more than $ 100 million of closeouts have taken place in the room’s bitcoin market over the past three days, with buy closeouts of $ 65 million indicating that short-oriented traders have been pressed against $ 42 million in the crypto equivalent of a margin call for long positions.

Bitcoin liquidation on BitMEX the last three days.
Source: Distort

In the options market, Denis Vinokourov, head of research at brokerage Bequant, noted that traders appreciate bitcoin’s $ 36,000 strike price.

Bitcoin options by strike price the day before
Source: Distort

“Given the disproportionate attention to Bitcoin’s $ 36,000 options strike for options expiration in late January, which comes with a series of optional games and risks, this disconnects bitcoin from fundamentals , so to speak, ”Vinokourov told CoinDesk. “It will be interesting to see if the market will be able to compartmentalize this bitcoin risk away from the rest of the market.”

Ether futures at $ 3.7 billion interest

Ether (ETH) was down on Friday, trading around $ 1159 and slipping 6.5% in 24 hours at 9:00 p.m. UTC (4:00 p.m. ET).

Read more: Ethereum 2.0 explained in 4 easy metrics

On January 1, open interest on ether futures, or OI, on major derivatives platforms was $ 2 billion. On Thursday, OI had climbed 85% to a record $ 3.7 billion according to aggregator Skew. Binance led the way with $ 820 million in OI, or more than 20% of the total ether futures market.

Ether futures opened interest on major exchanges last month.
Source: Distort

“ETH still hasn’t hit its previous record of over $ 1,400,” noted Brian Mosoff, managing director of investment firm Ether Capital. “To date, there has been less access to invest in ether than in bitcoin. While waiting for the imminent launch of the CME [ether] future, community members who are more crypto-native and have fewer restrictions on how to hold ETH are likely looking to kick off the launch.

Other markets

Digital assets on CoinDesk 20 are in Red Friday. Notable losers at 9 p.m. UTC (4 p.m. ET):

  • Oil rose 3%. Price per barrel of West Texas Intermediate crude: $ 52.48.
  • Gold was in the red at 3.4% and $ 1,848 at the time of publication.
  • On Friday, the yield on 10-year US Treasuries climbed to 1.110 and in the green 2.5%.
CoinDesk 20: the assets that matter most to the market

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