Bitcoin Breaks $11,800; As Ether Options Market Explodes

What Happened After The Crash Of Bitcoin On Sunday?

After Sunday’s crash, the Bitcoin continues it’s rebound this week.

Suggesting a roller coaster ride ahead for the world’s second-largest cryptocurrency is the ether options market. 

It was found that Bitcoin was trading around $11,868 as of 20:00 UTC (4 p.m. ET).

The gain was 1.8% over the previous 24 hours.

The 24-hour range of Bitcoin was $11,528-$11,915

A bullish signal for market technicians was BTC above 10-day and 50-day moving averages. 

For bitcoin, its been a positive week so far as the oldest cryptocurrency is still continuing the rebound from a Sunday price crash appreciating 12% on the bullish run as it isn’t showing signs of thereby slowing down.

Jean-Baptiste Pavageau the partner at quantitative trading from ExoAlpha says that reaching above $12,000 on Aug 2, the bitcoin had its ascension stopped short. The impact on bitcoin was short-lived and however, the breakout above $ 12,500 on the high volume definitely put BTC on the way.

History may never repeat but it does often rhyme for Pavageau, where after the second halving in 2016, if one looks at how the price of bitcoin moved, the path taken so far was highly similar and the sideways period of six to eight weeks post halving had thereby followed a run-up with a correction before heading to all-time highs a few months later.

A Sweden based over-the-counter bitcoin trader; Henrik Kueglberg believes that grim realities of the global economy continue to make the case for investment in the cryptocurrencies over the next few months as well. He further explains, getting real the stocks are set to fall with interest rates kept low expecting another bitcoin all-time high in September with the increase in prices all through Q4. 

Hereby Record Ether Options Open Interest

Down on Thursday trading around $397, and slipping 0.45% in 24 hours, as of 20:00 UTC (4:00 p.m. ET) was Ether the second-largest cryptocurrency by market capitalisation.

Seeing huge amounts of bets, the ether options market is on an absolute tear. Now approaching $400 million in the open interest where most of them are on Netherlands based platform Deribit leading the way with $351 million according to data from aggregator Skew. It is observed even though not the obligation but options give owners the right to buy or sell an underlying asset. 

Chris Thomas, the head of digital assets for broker Swissquote noted that now 2.5 times higher than it was just a few weeks ago, open interest is touching a new record. 

As Thomas says there comes almost zero real institutional volume through these exchanges, indicating those using the ether options come to be high-net-worth individuals or the small cryptocurrency fund preparing for increased ETH volatility. Anticipating further moves in the near future as implied volatility is now greater than realised volatility, the options market has now caught up with underlying ether.

It generally means that the market expects increased price fluctuations are ahead when implied volatility is greater than realised volatility. 

Other Markets

Thursday, the digital assets are mixed with notable winners as of 20:00 UTC (4:00 p.m. ET)

dash (DASH) + 12.3%
nem (NEM) + 9.4%
bitcoin cash (BCH) + 7.7%

Here Are The Notable Losers As Of 20:00 UTC (4:00 P.M. ET): 

Ethereum classic (ETC) - 2%
bitcoin gold (BTG) - 1%
stellar (XLM) - 0.75%

Those Equities:

As industrial stocks, Mitsui Engineering, Honda Motor, and Kawasaki Heavy Industries had dragged the index lower, in Asia, the Nikkei 225 closed in the red 0.43%.

As the sterling’s strength against the US dollar damped multinational stocks such as Unilever, in Europe the FTSE 100 ended the day down 1.27%. 

As tech stocks made gains and the most recent unemployment data was better than expected, in the United States the S&P 500 gained 0.50%

Commodities: 

With a new intraday high of $2,070, gold is up 1.2% and at $2,063 as of press time. 

Price per barrel of West Texas Intermediate crude is at $41.97 as the oil is down 0.45%. 

Treasuries:

Slipping Thursday, the U.S Treasury bonds with yields moved in the opposite direction as the price in the red 2.8% was down most on the 10-year. 

Yet There Is More To Be Watched 

With markets fluctuating there are possibilities of more highs and lows. We make it clear here that there are a lot of factors influencing Bitcoin and other coins to surge ahead or dip down. Ever so there have always been highs and troughs in the business cycle. More to be observed here.