Bitcoin loses some of its weekly gain due to low volume.
Bitcoin (BTC) began the week with a 3% drop on lower-than-average volume. The cryptocurrency is down 51% since the beginning of the year.
The coin’s dominance, a metric measuring the market capitalization of BTC relative to the rest of the cryptocurrency market, is now 42%, up from 40 %on January 1 and 41.8 % on April 1.
In traditional markets, the S&P 500 fell 0.5%, while the Dow Jones Industrial Average dropped 0.3%. The technology-heavy Nasdaq Composite Index fell 0.4% on the day.
Tuesday will see the release of Micro Strategy’s fiscal second-quarter results. Micro Strategy is a significant holder of Bitcoin. On average, analysts anticipate a loss of $7.27 per share, compared to a loss of $11.58 per share in the company’s fiscal first quarter, which ended on June 30.
The 30-day correlation between BTC and Micro Strategy’s stock is 0.85, indicating that the share price is highly correlated with BTC. The correlation coefficient ranges from -1.0 to 1.0, with higher values indicating a stronger association between assets.
Following a weekly increase of 9% the price of Ether (ETH) fell by 4.5 % on Monday.
Additionally, altcoins declined on Monday, with Polkadot (DOT) down 8.5% and Cosmos (ATOM) down 7%.
- Ether (ETH): $1,625 −5.6%
- S&P 500 daily close: 4,118.62 −0.3%
- Gold: $1,788 per troy ounce +1.4%
- Ten-year Treasury yield daily close: 2.61% −0.04
Bitcoin decreases in value.
In light of last week’s price movement; it is prudent to examine the open interest on the Bitcoin options market relative to the strike price. Open interest by strike indicates the quantity of option orders to buy (calls) or sell (puts) or both at various strike prices and can provide insight into traders’ perspectives on BTC’s fair value.
The most notable change in this metric since we last looked at it a week ago is an increase in $23,000 puts purchased. Due to the fact that puts represent the option but not the obligation to sell (in this case at $23,000), they can be interpreted as traders purchasing downside protection should prices exceed $23,000.
Open interest in call options, which give the buyer the right but not the obligation to buy, is still highest at $25,000. This shows that bullish investors are willing to buy BTC at this price.
The current realised price of Bitcoin is $21,000. The cryptocurrency has risen above the realised price after falling below it in June. Passing the realised price indicates that a greater number of BTC investors have entered a profitable range. The greater the number of optimistic investors, the more the price level tends to provide additional support.
Bitcoin prices continue to be supported by a supply of dormant coins.
The number of BTC coins that have not been traded in over a decade continues to rise. Some of these coins may have been completely lost, but it appears that some investors have no intention of selling.
As a point of reference, the 2.5 million coins that are currently dormant in cold storage surpass the 2.4 million BTC currently held across all exchanges.
On the macroeconomic front, the beginning of the week will be relatively quiet, although on Monday the Institute of Supply Management will release a survey indicating that manufacturing activity in the United States slowed in June. In June, construction expenditures fell 1.1% from May, missing estimates. However, the purchasing manager’s index exceeded expectations with a reading of 52.8. A reading above 50 indicates expansion in the manufacturing sector, while a reading below 50 indicates contraction.