Older coins are rapidly transferred from large Bitcoin wallets, reducing the average age of the coins by a significant amount. The current bullish cycle could be temporarily paused by this.
Bitcoin’s price has been muted following the approval of the Bitcoin ETF in the last week with its price hovering around $42,000. In spite of the run-up to $48,000 when the ETF was approved, the selling pressure thereafter has been significant.
Although there are subtle signs that the recent movement in older cryptocurrencies may have paused, there could be a concomitant pause in the market’s ongoing bullish cycle.
Nevertheless, market sentiment suggests that a few influential whales could spur the market’s revival, leading to a drop in the average Bitcoin age and potentially sparking another bull run, potentially testing resistance around $45,000 and even surpassing $50,000.”
Taking a closer look at options data and ETFs
Based on recent data, it appears that the main focus in today’s financial world is on how U.S. stock ETF trading impacts cryptocurrency prices. Among today’s block trades, $120 million was transacted in large put options, comprising 16% of the total. This represents an unusually high volume for such a day.
Among individual block trades surpassing $5 million, a notable trend emerged with a prevalence of short-selling in the form of short-term put options. On the other hand, smaller orders tended to favour purchasing short-term puts.
Despite logical concerns about the market’s current trajectory, some large traders perceive a potential stabilization, sparking optimism amidst existing uncertainties.
While Bitcoin ETF’s approval may not immediately impact the market, its long-term implications are substantial, as suggested by several market analysts. Renowned crypto analyst Michael van de Poppe highlighted:
“The Bitcoin ETF has provided a negative return since the start. The Bitcoin ETF has provided a massive net inflow on the first few days. More than $600 million on the first day. The real impact of the ETF will be shown in the coming few years. A mega bullish event”.
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