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Bitcoin (BTC) fell below $63,000, recording a 1.4% drop in the past 24 hours as traders took profits following its recent rally. Although spot prices have risen, the market’s implied volatility for BTC and Ethereum (ETH) has unexpectedly shifted towards put options over calls for contracts expiring in October. This suggests the market may have already factored in Bitcoin’s recent gains, leading to a sell-off of call options.
What can you expect from the market ahead? Let’s dive in.
Crypto Market Sees Broad Decline
Bitcoin’s dip triggered a widespread downturn across the crypto market. Major altcoins like Ethereum (ETH), Binance Coin (BNB), Cardano (ADA), and XRP also posted losses. Memecoin Dogecoin (DOGE) led the slide, dropping 4%, while Toncoin (TON) suffered a steep 20% weekly loss, largely impacted by the arrest of Telegram’s CEO.
Volatility = Market Hesitation?
While Bitcoin’s price trend is clear, the sudden volatility reflects market hesitation. With short-term option volatility on the decline, BTC’s spot price is expected to fluctuate within the $62,000 to $67,000 range in the near term. However, upcoming events, such as NVIDIA’s earnings report on August 28 and U.S. Personal Consumption Expenditures (PCE) data on August 30, are expected to bring no major surprises.
QCP Capital’s Strategy: Bullish But Cautious
Despite the market pullback, Singapore-based QCP Capital reported a rise in call spread buying, indicating a generally bullish sentiment among traders. However, this strategy reveals that while optimism persists, traders don’t expect a significant price surge anytime soon. Calls at the $100,000 level for Bitcoin reflect cautious optimism but underscore a conservative approach without banking on a dramatic rally.
Also Check Out: Bitcoin ETFs Witness Huge Inflows With BlackRock Holding Over 3000 BTC, Then Why is the BTC Price Stuck Within a Range?
The crypto world is full of surprises. What will the next big move be? Stay tuned.