Bitcoin was trading within a narrowed range on Thursday, as investors and traders were cautiously optimistic after the latest pullback, which took bitcoins price down close to $45,000 earlier this week.
Trading volumes were far lower than earlier in the week when traders scrambled to adjust positions as the market fell 15% in two days, the biggest such decline since the coronavirus-driven sell-off of March 2020. The eight exchanges tracked by CoinDesk had a combined spot-trading volume of less than $4 billion on Thursday as of press time. The figure had surged above $10 billion on Monday and Tuesday and was slightly above $5 billion on Wednesday.
In the derivatives market, bitcoins options open interest is slowly returning after it dropped Tuesday slightly from an all-time peak of about $13 billion on Sunday.
Bitcoins market is rather quiet today, Yves Renno, head of trading at crypto payment platform Wirex, said. Its derivatives market is going back to normal after the severe contract liquidations suffered a few days ago. Close to $6 billion worth of long future contracts were liquidated. The market is now trying to consolidate above the $50,000 level.
Traders are still cautious today, Renno added. Its wait and see.
As CoinDesk reported earlier, traders are also watching closely for any potential impact of surging bond yields on bitcoin. U.S. stocks opened lower on Thursday on investors rising concerns about the sharply growing 10-year U.S. Treasury yields. Some analysts ...
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