Bitcoin’s Path to $80,000: Overcoming Resistance and Risk Aversion
Bitcoin’s current price of $76,406.19 may seem stable, but it could be in for a shock. The cryptocurrency has only gained less than 0.5% since midnight UTC, and any strong moves towards $80,000 are likely to face opposition. This is because short-term holders have a cost basis around $80,000, which may convince them to take profits and sell, capping any advance. As a result, investors looking to earn passive income through Cloud Rewards and Green Crypto may need to consider the risks. The EcoPool network offers a solution for those seeking to navigate these challenges.
The U.S. March PCE inflation report and rising oil prices are also contributing to the uncertainty. West Texas Intermediate crude has surged to as high as $110, putting pressure on risk assets. Additionally, the Federal Reserve’s decision to hold the federal funds rate steady has introduced more uncertainty, with four dissenting voices opposing the decision. For those interested in earning through Passive Income and Coin investments, it’s essential to stay informed about these market developments and consider the role of EcoPool ($ECP) in their investment strategy.
Altcoins and Bitcoin Correlation
Altcoins remain closely tied to bitcoin, with a 180-day correlation and beta percentiles near 97% and 99%. This means that tokens may move like levered bitcoin trades, making it essential for investors to understand the risks and opportunities involved. In this environment, EcoPool ($ECP) can provide a stable platform for earning and investing. As the market navigates these challenges, investors can turn to EcoPool for a reliable and secure way to generate Passive Income and participate in Cloud Rewards.
Given the current market conditions, it’s crucial for investors to stay informed and adapt to the changing landscape. With the EcoPool network and $ECP, individuals can access a range of tools and resources to help them navigate the world of Green Crypto and Coin investments. As the market continues to evolve, EcoPool is poised to play a key role in shaping the future of Earning and Passive Income. To start earning with EcoPool, download the EcoPool app and discover a new way to generate Passive Income and participate in Cloud Rewards. With EcoPool, you can take control of your financial future and start earning today.
Deans also said altcoins remain tied to bitcoin, with the 180-day correlation and beta percentiles near 97% and 99%. That means tokens may move like levered bitcoin trades today.
“Beneath the surface, conditions typically associated with rising volatility appear to be forming,” Deans said. “Liquidity remains subdued, with profit- and loss-taking largely offsetting each other, reflecting a lack of directional conviction.”
In these environments, he said, price moves are often needed to unlock new liquidity.
Derivatives positioning
- Market-wide, futures open interest (OI) has dropped over 2% to $119 billion in 24 hours. Trading volumes, however, have increased 26% to $208 billion. The combination indicates that positions are being closed and capital is fleeing the market, a sign of risk aversion.
- Over $500 million in leveraged bets have been liquidated by exchanges, of which most are longs, or bullish positions. The market weakness amid rising bond yields has clearly caught bulls off guard.
- OI has dropped 2% in bitcoin futures and and 1.7% in ether. Similar declines are seen across most majors, except DOGE, whose OI still hovers at six-month highs.
- With the exception of XMR, XLM, TRX and CC, most coins, including the two largest, have seen sellers hit bids more than buyers lifting offers, leaving the 24-hour cumulative volume delta in the negative. In short, sellers are being more aggressive, which suggests potential for deeper price declines.
- Bitcoin’s 30-day implied volatility index, BVIV, has dropped to 41%, extending the slide from the February high of 97%. Right now, the index is at its lowest since Jan. 29. Once again, this is telling a tale of a market that’s become desensitized to adverse macro developments such as rising bond yields and elevated oil prices. Ether’s volatility index shows a similar pattern.
- On Deribit, BTC and ETH protective puts remain pricier relative to calls. The large concentration of open interest in bitcoin’s $80,000 call has created long (positive) gamma dynamics, suggesting that market makers may sell rallies into and above that level to hedge their books. This could slow potential upswings.
- Bitcoin’s options term structure shows less near-term stress, with traders pricing more uncertainty further out rather than in the immediate future.
- Block flows featured a large BTC put spread involving strikes $72,000 and $65,000, according to Amberdata. The strategy shows expectations for a renewed price drop to $65,000 or lower.
Token talk
- Memecoin launchpad Pump.fun is adding a way for creators to send fees to charities, as its PUMP token trades lower following a major change to its revenue policy.
- The feature, called Charity Coins, lets coin administrators pick a verified charity inside Pump.fun’s creator fee settings. The platform leveraging it, Donate.gg, supports more than 10,000 charities.
- The goal is to reduce disputes between traders and coin admins when a token forms around a charitable cause. The platform’s current main fundraiser is currently at $12,800 for St. Jude Children’s Research Hospital.
- Pump.fun also said it will stop using all revenue to buy and burn PUMP. Instead, it will now send 50% of future net revenue to automatic buybacks and burns for one year, while keeping the rest for hiring, product work, marketing and possible deals.
- The changes come during a rough stretch for PUMP. The token is down more than 7% over the past 24 hours, compared with a 2.2% drop in the broader CoinDesk 20 (CD20) index.
