Crypto
Bitcoin, Ether Stable Post $400M Liquidation, BTC at $69.4K, ETH at $3.66K
Bitcoin and Ether stagnate post $400M liquidation, open interest drops from $99B to $60B.
Key Takeaway
- Bitcoin and Ether remained stable over the weekend after a $400 million leverage flush, with BTC trading at $69,400 and ETH at $3,660.
- Open interest in futures contracts dropped from $99 billion to $60 billion post-NFP data release; volumes fell 10%.
- Upcoming macroeconomic events like CPI release, FOMC meeting, and Janet Yellen's speech are expected to drive market volatility this week.
Weekend Market Stagnation
Bitcoin (BTC) and ether (ETH) experienced minimal price movement over the weekend, with BTC trading just over $69,400 and ETH around $3,660 during early European hours on Monday. This stagnation follows a significant $400 million leverage flush out on Friday, which dampened market momentum. Open interest and trading volumes have notably slumped, with open interest dropping from $99 billion to $60 billion and volumes falling by 10% in the past 24 hours, according to Coinglass data.
The sharp decline in BTC from $71,000 to $69,000 was triggered by stronger-than-expected non-farm payrolls (NFP) figures, which showed the US economy adding 275,000 jobs compared to the expected 185,000. This unexpected economic strength led to a market plunge, particularly affecting leveraged positions.
Impact on Altcoins and Meme Stocks
The broader crypto market also felt the impact of the weekend's events. Major meme coins like dogecoin (DOGE) and shiba inu (SHIB) saw losses of up to 10%, influenced by a slide in meme stock GameStop (GME). Other altcoins such as Solana (SOL) and XRP showed slight losses, while BNB Chain’s BNB tokens dropped 5.5% as traders likely took profits following a rise to a lifetime peak of over $710 last week. In contrast, Cardano (ADA) saw a slight uptick on Monday, buoyed by confirmation of a technical event that could positively affect the network's fundamentals.
Anticipated Market Volatility
Despite the current lull, analysts at Presto Research anticipate a return of market volatility in the coming week, driven by several macroeconomic catalysts. Key events include the Consumer Price Index (CPI) release on Wednesday, the Federal Open Market Committee (FOMC) meeting on Thursday, and a speech by Janet Yellen on Friday. These events are expected to provide significant market-moving information, particularly regarding inflation and interest rate decisions.
The upcoming CPI data is expected to show a 3.4% year-over-year increase and a 0.1% monthly rise, according to economists polled by Dow Jones. Core CPI, which excludes volatile food and energy prices, is anticipated to increase by 3.5% year-over-year and 0.3% on a monthly basis. These figures will be closely watched as they could influence the Federal Reserve's policy decisions.
Street Views
- Presto Research (Cautiously Optimistic on the market):
"We expect market volatility to return in the week ahead with macroeconomic catalysts such as the CPI release on Wednesday, the FOMC meeting on Thursday, and Janet Yellen's speech on Friday."
