By
Temitope Olatunji
April 24th, 2024
Bitcoin price is growing along with the soaring BTC futures volume. Traders are becoming ‘modestly bearish’ on futures, according to the monitoring resource Material Indicators.
Bitcoin (BTC) seems to recover after showing signs of weakness. After reaching $64,654 back in April, it has been trading at between $30,000 and $40,000 for the last several months. However, over the last week, it has been rapidly rebounding. After Bitcoin price broke above $48,000 on Sunday, it became clear that it would reach a new resistance near $50,000-$55,000. As of the press moment, Bitcoin is already trading at $50,255.28, according to CoinMarketCap.
Year-to-date, Bitcoin is 326.6% up. The coin’s market cap is $942,6 billion.
Mati Greenspan, CEO of Quantum Economics, stated:
“It’s not the first time we’ve crossed this legendary milestone, but given the advancements in the industry lately, $50,000 certainly seems justified at this time.”
Other digital currencies ended the week in an optimistic mood as well. For example, Ethereum (ETH) has added 1.98% to $3,329.09. Cardano (ADA) soared by 9.74% to $2.81 and hit a fresh all-time high. Further, Binance Coin (BNB) rose by 5.23% to $479.86.
Santiago Espinosa, a strategist at MRB Partners, commented:
“Right now, bitcoin and other cryptos have enjoyed technical support (as they were becoming mildly oversold). At this juncture, some cryptos can continue to do well if policymakers neglect inflationary pressures and regulatory issues don’t become a mainstream problem.”
As we reported on Friday, Bitcoin has been showing a close correlation to the S&P 500 over the last month. It has gained nearly 60% within the last 30 days.
Growing Futures Volume
Bitcoin price is growing along with the soaring BTC futures volume. Traders are becoming ‘modestly bearish’ on futures, according to the monitoring resource Material Indicators.
Just noticed this…
Call sell at 32k (Aug EOM), and call buy at 34k (Sept EOM) with similar notional amount, suggesting it's the same person.Seems like it's a 'Long calendar spread with calls':https://t.co/YAGJqBhfyI
And that particular setup suggests (modestly) bearish#BTC pic.twitter.com/dsd1tQ5b7x
— Material Scientist (@Mtrl_Scientist) August 21, 2021
Notably, over the last year, futures and perpetual swaps have become the most popular financial instruments in crypto markets. Currently, futures and perpetual futures make up over 60% of the total daily Bitcoin volume. Ethereum futures see the same trend.
Regulation Issues
As there is more and more focus on cryptocurrencies, there are more issues when it comes to regulating digital assets. While China has cracked down on digital currencies earlier this year, primarily through crypto mining restrictions, US Senators have considered a new framework to bolster cryptocurrency tax reporting measures.
As we have reported, three US Senators proposed a crypto tax amendment that addressed concerns from the cryptocurrency industry that the original bill would require entities, miners, and software developers to report tax data to the Internal Revenue Service that they didn’t have access to. However, the US Senate rejected the crypto tax amendment to the $1 trillion infrastructure bill. At present, the bill defines a “broker” as “any person who (for consideration) is responsible for regularly providing any service effectuating transfers of digital assets on behalf of another person”. According to crypto supporters, such a definition is too broad.