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Bitcoin tests $66,000 as analysts expect more volatility before calm
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Bitcoin remains volatile, but some calm in the market is expected soon.
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Traders are evaluating the possibility of an ether ETF soon, according to QCP Capital.
Bitcoin {{BTC}} tested $66,000 during Asian trading hours on Friday, as market observers expect the leading cryptocurrency to face more volatility in the future.
“Bitcoin remains volatile with the 10% drop we saw this week, with the recent catalyst driven by GBTC Bitcoin ETF spot outflows of around 300mm on March 20,” said Semir Gabeljic, director of capital formation at Pythagoras Investments. email interview.
“The decline still remains in line with the expected range of 10-20%, as we have seen historically, just before the BTC halving event. More volatility is expected during the BTC halving,” he continued.
In the meantime, the CoinDesk 20 (CD20), a measure of the world’s most liquid digital assets, is down 0.5%.
CoinDesk 20 Index Leaders on March 21 (CoinDesk)
CoinDesk’s Digitization Index (DTZ), which measures the performance of digitization protocols such as Ethereum Name Service (ENS), was the best performing index during Asian trading hours, up 2.7 %.
In a note sent Friday morning Asian time, Singapore-based QCP Capital wrote that the market was consolidating with bitcoin and ether trading in a “relatively narrow range” and that the market “could make a break this weekend” after last weekend’s pre-session. FOMC volatility.
The trading house also noted that the Grayscale Bitcoin Trust (GBTC) continued to experience significant outflows, with $358.8 million leaving the fund. QCP expects a fourth consecutive day of net outflows from BTC spot exchange-traded funds.
Regarding ether {{ETH}}, QCP says the market is starting to price the chances of an ether spot ETF being approved soon.
“The Grayscale ETH discount has gone from -8% to -20% over the last two weeks,” QCP noted.
Prediction markets also reflect this. On Polymarket, a contract asking if an Ethereum ETF will be approved by May 31 is currently trading with a 21% probability of this being the case.
The Ethereum Foundation is is currently under investigation by a state authority, which Fortune says is the Securities and Exchange Commission. The question remains whether the SEC considers ether to be a security, and the Commission doesn’t been responsive to FOIA requests key documents that would help to better understand his point of view on the issue.
Blockchain punters on Polymarket also believe Q2 is when the ether hits This is its all-time high, but a significant portion of traders also believe that there will be no all-time high in 2024.
Ether is currently trading above $3,500, up 1.2%, according to CoinDesk indexes data.