What to Know:
- XRP is showing strength, leading gains among major cryptocurrencies amid activity in the options market.
- Overall crypto market volatility remains low, with a preference for spot trading over derivatives.
- Keep an eye on the dollar’s strength; a break above 100 could pressure crypto and other risk assets.
The crypto market is navigating a period of consolidation, with Bitcoin hovering around $103,000 and Ethereum near $3,500. XRP has emerged as a notable performer, driven by increased options trading. Investors are closely watching for a catalyst that could signal either a continuation of the downtrend from October’s highs or a potential market bottom.
Despite the U.S. government reopening, Bitcoin and Ethereum implied volatility indexes remain elevated, suggesting ongoing structural concerns. Futures markets are seeing a reduction in risk, with Bitcoin open interest declining and liquidations primarily affecting long traders. This indicates a cautious sentiment among leveraged traders.
In ETH’s case, put diagonal calendar and call calendar spreads are two of the most popular strategies.
Altcoins are experiencing varied performance, with AERO declining following its merger announcement with Velodrome. This merger aims to create a unified protocol, expanding the ecosystem’s reach. Meanwhile, STRK and FET have also seen declines, although they remain up for the week, underscoring the selective nature of altcoin rallies.
Looking ahead, market participants are focused on potential regulatory developments and macroeconomic indicators. The strength of the dollar remains a key factor, as a continued rise could exert downward pressure on crypto assets. Monitoring these elements will be crucial for gauging the market’s next direction.
Source: Original article
