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Bitcoin Punches Above $27K, but Analysts Have Bearish Price Predictions
Bitcoin shot up to $27,000 in European afternoon hours on Monday, adding over 2% in the past 24 hours.
Updated Sep 18, 2023, 3:22 p.m. Published Sep 18, 2023, 9:27 a.m.
Bitcoin (BTC) zoomed above the $27,000 price level in European afternoon hours on Monday, with ether (ETH) holding above support levels, though interest-rate decisions due later this week may introduce downward pressure.
Markets remained generally tepid over the weekend, with overall capitalization growing just 0.4% in the past 24 hours, according to CoinGecko data. Crypto futures liquidations clocked in at just $48 million – their lowest level since mid-August – while open interest, or the amount of futures contracts, grew 4%, suggesting a low sentiment.
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As of Asian afternoon hours, the CoinDesk Market Index (CMI) rose 0.3%, mirroring low gains among alternative currencies.
led losses among major tokens, dropping 1% in the past 24 hours, most likely as traders took profits on a 40% increase last week after messaging giant Telegram said it would integrate a TON-based app on its platform.
Meanwhile, some traders are awaiting key decisions in traditional markets they say could be bearish for the crypto environment.
“Markets could move nervously in the next few days as we await major data prints from the U.K. and U.S., with both countries’ central banks due to announce new rate decisions later this week,” said Simon Peters, a market analyst at investing platform eToro, in a note to CoinDesk.
“Despite inflation falling in both economies, signs are there that this retreat might not be fully felt yet. Like other risk assets, crypto assets are sensitive to rate expectations so any hardening in tone could leave investor sentiment bearish,” he wrote.
Elsewhere, analysts at the on-chain analytics platform CryptoQuant pointed out recent price moves have not impacted the estimated leverage ratio on bitcoin and ether.
The ratio is a measure of an exchange's open interest divided by their coins reserve which shows how much leverage is used by users on average. An increase in values indicates more, while a flat value shows low trading interest from futures traders.
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Solana CME Futures Fell Short of BTC and ETH Debuts, but There's a Catch
When adjusted for asset market capitalization SOL's relative futures volume looks better, K33 Research noted.
What to know:
- Solana's SOL futures began trading on the Chicago Mercantile Exchange (CME) on Monday, with a notional daily volume of $12.3 million and $7.8 million in open interest, significantly lower than the debuts of bitcoin (BTC) and ether (ETH) futures.
- Despite the seemingly lackluster debut, when adjusted to market value, SOL's first-day figures are more in line with BTC's and ETH's, according to K33 Research.
- Despite the bearish market conditions, the launch of CME SOL futures offers new ways for institutions to manage their exposure to the token, said Joshua Lim of FalconX.
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