Bitcoin price holds $26K as derivatives data hints at end of volatility spike
Genslers declarations supplied little peace of mind that the companys enforcement-driven regulatory efforts would cease.Not every 10% Bitcoin cost crash is the sameBitcoin quarterly futures typically tend to trade with a minor premium when compared to find markets. Healthy markets typically see BTC futures contracts being traded with an annualized premium ranging from 5 to 10%. This might imply that expert traders were either highly positive in the soundness of the market structure or were well-prepared for the 10.4% correction.The 11.4% BTC crash between Aug. 15 and Aug. 18, exposes unique dissimilarities from previous instances.
In the past couple of months, Bitcoin traders had grown used to less volatility, but historically, its not unusual for the cryptocurrency to see cost swings of 10% in just 2 or 3 days. The current 11.4% correction from $29,340 to $25,980 in between Aug. 15 and Aug. 18 took lots of by surprise and caused the largest liquidation considering that the FTX collapse in November 2022. The question stays: Was this correction significant in terms of the market structure?Certain experts point to lowered liquidity as the factor for the recent spikes in volatility, but is this truly the case? BTC rose 70%+ in 2023, yet the “Alameda space” – liquidity dip post FTX and Alameda Research collapse – stays, supported by low volatility.Read full analysis here: https://t.co/kVslgLQtpL pic.twitter.com/g8Ac7udBl7— Kaiko (@KaikoData) August 17, 2023
In the previous few months, Bitcoin traders had grown utilized to less volatility, however traditionally, its not unusual for the cryptocurrency to see rate swings of 10% in simply two or 3 days. Genslers statements provided little peace of mind that the agencys enforcement-driven regulative efforts would cease.Not every 10% Bitcoin rate crash is the sameBitcoin quarterly futures generally tend to trade with a slight premium when compared to spot markets. Healthy markets typically see BTC futures contracts being traded with an annualized premium ranging from 5 to 10%. This could suggest that expert traders were either highly positive in the soundness of the market structure or were well-prepared for the 10.4% correction.The 11.4% BTC crash between Aug. 15 and Aug. 18, reveals distinct significant differences from previous circumstances. The starting point for Bitcoins futures premium was higher, surpassing the 5% neutral threshold.Bitcoin 3-month futures premium, August 2023.