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Market protection: Bitcoin reaches $ 57K after the expiration of the $ 4.2B options; Ether Steadies at $ 2.7K

The derivatives market may have played a role in pushing the spot market price of bitcoin to a level not seen for almost two weeks. Meanwhile, the ether market seems to be separating from bitcoins for now.

  • Bitcoin (BTC) is trading around $ 56,996 as of 21:00 UTC (16:00 ET). Earn 7.5% in the previous 24 hours.
  • 24-hour bitcoin range: $ 52,604 – $ 57,219 (CoinDesk 20)
  • BTC above the 10-hour and 50-hour moving averages on the hourly chart, a bullish signal for market technicians.

Bitstamp Bitcoin price chart from April 27.
Source: TradingView

The price of bitcoins rose on Friday. At around 17:00 UTC (12:00 ET), the world’s oldest cryptocurrency reached $ 57,219, according to CoinDesk 20. The price of bitcoins on Friday jumped above $ 4,600 over 24 hours, settling slightly over time. of the press, at $ 56,996.

“One of the reasons we can see the price of bitcoins rising is the $ 4.2 billion leak in bitcoin contracts today,” said Steve Ehrlich, CEO of investment firm Voyager Digital. “Historically, there have been price declines in the days leading up to the expiration of bitcoin options, only to recover afterwards.”

For most of this week, the price of bitcoins has struggled to win. Bitcoin was last traded at $ 57,000 almost two weeks ago, on April 17.

The historical price of bitcoin in the last month.
Source: CoinDesk 20

“What we are experiencing is probably the recovery, which further confirms the continuing upward position around bitcoins,” said Ehrlich.

The expiration of the options may have caused some traders to return to the spot market on Friday, as buyers raised the price upwards, said Nate Cox, chief investment officer of crypto brokerage Two Prime. “Most of the long calls and pools for monthly contracts in April are useless,” Cox said. Needless to say, bitcoin hasn’t changed the way many derivatives traders expected this month.

Read more: Bitcoin jumps 6% to $ 57K as market shrinks by $ 4B + Options expiration

However, this impulse may weaken. Options traders don’t seem to be too bullish for bitcoins, which are holding the $ 60,000 level any time soon. Based on market data summarized by Skew, options expiring on May 21 are such positions that there is only a 38% chance of bitcoin reaching $ 60,000 on that date, with a 53% probability of $ 56,000 and a 74% probability of BTC over $ 50,000.

Probabilities for the price of bitcoin at the expiration of May 21.
Source: Oblique

Voyager’s Ehrlich said more money appears to be flowing into the ecosystem on Friday because many assets are also increasing – a plus for the entire crypto market.

“Along with the positive momentum of BTC, we are also seeing price movements in other altcoins such as DOT, XLM, AVAX, LINK, LTC, ALGO, DASH and ICX in the last 24 hours,” Ehrlich said. “This shows that traders remain bullish across the spectrum of crypto assets and are not moving away from altcoins to bitcoin.”

The ether is surprisingly flat; is it separated from BTC?

Bitstamp Bitcoin price chart from April 27.
Source: TradingView

Ether (ETH), the second largest cryptocurrency by market capitalization, traded around $ 2,786 at 21:00 UTC (16:00 ET), an increase of 1.9% over the previous 24 hours.

After reaching fresh record highs several times this week, Ether struggled to make a profit on Friday, a stark contrast to the price of bitcoin. Analyzers are mixed on whether the ether correlation is completely separated from bitcoin.

“ETH now has a completely different game, making the most of DeFi projects,” said Konstantin Kogan, a partner at investment firm Wave Financial. “I guess they’ll be more and more decorated.”

Decentralized financing or DeFi certainly shows the basics that signal continued growth; the total locked value has already exceeded $ 65 billion for this market.

Part of this profit is a function of price, but the amount of crypto deposited remains stable, which means that investors do not withdraw crypto from DeFi to deploy it elsewhere, which is a bullish sign.

Total value locked for US dollar crypto in the DeFi ecosystem.
Source: DeFi Pulse

Darius Sit, head office of QCP Capital, noted that the trading pair ETH / BTC, popular on most cryptocurrencies, shows bitcoin ether is being sold today.

“ETH / BTC was going up, so it’s just an average reversion, I guess,” Sit told CoinDesk.

ETH / BTC decreased by 5% on Coinbase at the time of pressing.

Coinbase’s ETH / BTC trading pair from April 27.
Source: TradingView

After all, trading in ether, other than bitcoins, is likely a temporary condition, according to Sit. – A few days [of] the separation is not statistically significant, “he told CoinDesk. “I don’t think this is abnormal pricing behavior.”

Read more: Ether can reach $ 10,000, says FundStrat, Touting Network Value

Other markets

CoinDesk 20’s digital assets are on Green Friday. Notable winners at 21:00 UTC (16:00 ET):

  • Oil fell by 2.1%. Price per barrel of West Texas intermediate: $ 63.49.
  • Gold was down 0.24% at $ 1768 at the time of the press release.
  • Silver fell 0.84% ​​to $ 25.85.

Read more: NYSE owner ICE sold Coinbase a $ 1.2 billion bet

  • The yield on 10-year US government bonds fell to 1,628 on Friday, and 0.74% in red.

CoinDesk 20: The assets that matter most to the market

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