November 17, 2024
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The expert warned about the risks of bitcoin correction due to high leverage

The distribution of expected volatility in the Bitcoin options market suggests a high probability of trading at lower levels. CoinDesk writes about this with reference to Blofin experts. “Traders have reached an implicit consensus that the prices of the first cryptocurrency and altcoins are still high and a pullback is possible,” experts commented. Blofin noted that a similar situation was observed in derivatives on Donald Trump-related shares of Trump Media & Technology before their quotations fell in half in two […]”, — write: businessua.com.ua

Expert warns of risks of bitcoin correction due to high leverage - INFBusiness

The distribution of expected volatility in the Bitcoin options market suggests a high probability of trading at lower levels. He writes about this with reference to experts from Blofin CoinDesk.

“Traders have reached an implicit consensus that the prices of the first cryptocurrency and altcoins are still high and a pullback is possible,” experts commented.

Blofin noted that a similar situation was observed in derivatives on Donald Trump-linked shares of Trump Media & Technology before their quotations halved in two weeks with little.

The chapter’s comments do not add optimism Fed Jerome Powell. The latter emphasized that there is no need to rush to reduce the rate at the meeting in December.

Analysts at QCP Capital also took a more cautious view, while counting on the proximity of $100,000-$120,000 against the background of speculation about the creation of a bitcoin reserve by Donald Trump.

They noted the selling of calls and the buying of puts by large players to hedge risk. Experts also drew attention to the active growth of leverage, especially in altcoins, which was reflected in the growth of financing rates.

“The risk of deleveraging can be quite significant,” experts warned.

XRP timeAmong altcoins, XRP’s jump of 17.6% over the last day stood out from the rest. In seven days, the coin increased in price by 54.2%.

The expert warned about the risks of bitcoin correction due to high leverage - INFBusiness

Binance XRP/USDT 15-minute chart. Source: TradingView.

The asset shows the greatest sensitivity to the news about the possible departure of Gary Gensler from the post of the head SEC given the years-long tussle between the fintech company and the regulator.

The reason was the official’s statement, in which many saw preparation for such a scenario.

On the same day, the attorneys general of 18 US states filed lawsuits against the agency and its commissioners, alleging unconstitutional overreach and unfair harassment of the digital asset industry.

It will be recalled that Bernstein was urged to add crypto-assets to the investment portfolio “as soon as possible”. They recommended buying a basket of digital assets including BTC, ETH, SOL, OP, ARB, POL, UNI, AAVE and LINK.

Glassnode previously noted that Bitcoin has not reached levels for hodlers to lock in profits

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