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Reasons Why Bitcoin Price Is Dropping Despite Fed Rate Cut Odds?
The crypto market braces for impact as Bitcoin and Ethereum options worth $1.4 billion are set to expire today, CME BTC futures close, and PPI data. Traders look for cues of market recovery as CPI inflation falls to a year low, anticipating Fed rate cuts to start in September. Let’s check details about reasons why Bitcoin price is dropping despite higher odds of a Fed rate cuts starting in September.
Bitcoin And Ethereum Options Worth $1.4 Billion to Expire
Almost $1.4 billion in Bitcoin and Ethereum options will expire on July 12, according to data from the largest crypto derivatives exchange Deribit. BTC price has dropped to a 24-hour low of $56,561, with no support from trading volumes for Bitcoin price recovery.
Over 23,722 BTC options with a notional value of $1.36 billion expire today on Deribit. The put-call ratio is extremely high at 1.08 as put open interests are 12,328.50 against 11,393.50 call open interests, raising skepticism over recovery in the coming days.
Moreover, the max pain is at $58,500 strike price, with put options more than call options at the strike price. Currently, the max pain point is higher than Bitcoin price. It indicates bearishness among traders continues to persist and Bitcoin remains under selling pressure.
Historical Volatility has continued to surge while BTC Volatility Index (DVOL) shows signs of drop. Options traders continue to remain cautious amid German government Bitcoin selloff.
Meanwhile, ETH options of notional value $0.48 billion are set expire. The put-call ratio is 0.37 and the max pain price is $3,100. ETH price is currently trading below the max pain point, implying that traders still have some room to recover amid the spot Ether ETF sentiment.
PPI Inflation Data Looms
Producer prices index (PPI) annual inflation data in the US is expected to come in at 2.3%, higher than 2.2% in May. The monthly reading is expected at 0.1% against -0.2% last month.
Meanwhile, economists expect Core PPI YoY for June at 2.5%, a 0.2% increase as compared to last month. Also, Core PPI MoM is expected to come in at 0.2%, higher than the previous month’s core PPI data.
Recently, US CPI cooled to 3%, causing odds of Fed rate cuts to increase above 90%. Bitcoin also rebounded above $58,000 amid market optimism. However, the price has dropped amid negative sentiment.
Also Read: Crypto Market Crash Fails To Dent VanEck CEO’s Bullish Outlook
Bitcoin Price Falls As CME Futures Closes
Traders sold BTC futures as CME closed futures trading for the week, causing Bicoin price to fall below $57,000. CME BTC futures trading will open on Sunday.
The crypto market rebounded slightly this week, with volatility falling sharply to a new low since March. The quarterly delivery and large fluctuations created a perfect entry opportunity for sellers. This week, option sellers opened large number of positions, which also became a driving force to lower the IV of major maturities.
Coinglass data indicates CME BTC futures open interest fell over 1% in the last 24 hours. The BTC futures OI has dropped to $8.26 billion.
Also Read: Bitcoin Enters Extreme Fear Zone For The First Time In 18 Months: Market To Crash?
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
The Shiba Inu burn rate has again fueled substantial market optimism across the crypto landscape, witnessing a whopping 7200% surge on Friday. As over 1 billion tokens were removed from the asset’s circulating supply in the past 24 hours, a bullish market sentiment bubbled the meme-themed asset. Further, with on-chain metrics reflecting strong market support for the crypto, an upshot is that investors eye SHIB price gains ahead despite the current market volatility ahead of the U.S. PCE inflation data release.
Shiba Inu Burn Rate Skyrockets 7200% As Nearly 1Bln Tokens Destroyed
As per the latest data by Shibburn, the Shiba Inu burn rate witnessed a whopping 7240% uptick on January 31. This massive upswing is primarily attributed to the removal of 1.1 billion tokens from the circulating supply.
Notably, the wallet address 0xc7d04.. appears to be responsible for the lion’s share in the intraday burn rate upsurge, sending slightly over 1 billion tokens to a null address. In turn, the SHIB circulating supply at the time of reporting shredded and reached 584.25 trillion tokens. Overall, the massive blow to the asset’s supply has reverberated market optimism, mirroring the law of supply and demand.
Recent Community Advancement Bolsters Market Sentiment
Further, the recent launch of ShibOS remains a hot topic across the Shiba Inu community. The recently introduced blockchain-based platform offers users a smooth Web2 to Web3 transition for various use cases. This chronicle has aided the meme coin in broadening its horizon, thereby attracting further market attention.
Can SHIB Price Breakout Amid Burn Surge?
At the time of reporting, SHIB price traded at $0.00001866, showcasing a highly turbulent intraday movement. The top dog-themed meme coin’s intraday bottom and peak were recorded as $0.0000185 and $0.00001896, respectively.
It’s noteworthy that the token faces a critical resistance at the $0.000019 level. Nevertheless, the massive Shiba Inu burn rate surge has uplifted the market sentiment for the asset despite the broader sideways price movement.
On-Chain Metrics Signal Strong Market Support
Renowned crypto market enthusiast Zach Humphries has posted on X, spotlighting bullish metrics for the meme token. Almost 74% of Shiba Inu holders have held onto their holdings for over a year, underscoring retained market interest in the asset despite price fluctuations.
Further, nearly 47% of holders are making returns on the current price level. However, if these holders decide to sell ahead for profit-booking, volatility in price may be expected moving ahead. Nevertheless, current stats reflect a highly prominent market stand for the meme coin, with the Shiba Inu burn surge injecting additional bullishness on future prospects.
Crypto Market Faces Turbulence As PCE Inflation Data Looms
It’s noteworthy that Shiba Inu’s price action currently aligns with the broader crypto market trend. As the U.S. PCE inflation data for December looms to be released on January 31, Bitcoin and altcoins flux. Nevertheless, the recent SHIB burn data and broader community advancements continue to garner optimism about the token’s long-term prospects, flagging a bullish breakout ahead.
Coingape Staff
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Crypto Market Today, January 31: Bitcoin (BTC) and altcoins have again encountered a turbulent action right ahead of vital U.S. economic data release. As the PCE inflation data looms for Friday, traders and investors appear to be uncertain about the market’s performance ahead. Simultaneously, BTC traded near the $104K level as of press time, whereas leading altcoins illustrated mixed price actions.
Here’s a brief overview encompassing some of the most trending coins for the day and how they are performing intraday.
Crypto Market Today Reflects Uncertainty Ahead Of PCE Inflation Data
The broader market eagerly awaits the December U.S PCE (personal consumption expenditures) inflation data, which is set to be released on January 31. Notably, this data remains much eyed by investors as it could pave the way for interest rate changes by the next FOMC.
As a result, market participants are uncertain about future performances. In turn, even the global crypto market cap stagnated around the $3.5 trillion mark. Besides, the global market volume plunged by 16% intraday, reaching $105.07 billion.
So, let’s delve deeper into the coins’ prices today.
Bitcoin Price Briefly Touches $106K
BTC price is currently trading at $104,331, down nearly 1% from yesterday. However, the coin briefly touched the $106K mark in its intraday movement while also reaching a low of $103,962. Notably, the volatile price action comes against the backdrop of looming U.S. PCE inflation data. Also, the flagship crypto’s futures OI dropped nearly 2% to $64.91 billion on Friday.
Ethereum Price Fluxes Amid Broader Crypto Market Turbulence
ETH price saw a marginal 0.5% jump in value over the past day, reaching $3,227. The coin’s 24-hour bottom and peak were $3,179.45 and $3,282.99, respectively.
While the coin faces turbulence in tandem with the broader market trend, renowned analyst Ali Martinez spotlighted a highly bullish metric for Ethereum. Intriguingly, whales have heavily purchased the crypto amid its recent price dip, accumulating nearly 100,000 ETH. This massive accumulation underscores rising market confidence in the asset, signaling that potential gains are imminent.
XRP Price Slips
XRP price slipped by nearly 1% in the past 24 hours and is currently resting at $3.09. The coin’s intraday low and high were $3.08 and $3.15, respectively. It’s noteworthy that the asset has consolidated around the $3 mark for quite some time, signaling that a potential breakout looms.
Solana Price Today
SOL price fell by nearly 2% in the past 24 hours, reaching $235 at the time of reporting. The coin’s 24-hour low and high were $235.39 and $244.33, respectively. Solana currently mirrors volatility in sync with the broader market trend.
How Is The Meme Coin Market Performing?
Simultaneously, Dogecoin (DOGE) price witnessed a 1% dip in value, reaching 0.3272. Further, even Shiba Inu (SHIB) price witnessed a marginal 0.3% decrease in value intraday, reaching $0.00001855. PEPE and TRUMP mimicked the broader sector’s action, exchanging hands at $0.0000128 and $25.49, respectively.
Top Crypto Market Gainers Today
JasmyCoin (JASMY)
Price: $0.03261
24-Hour Gains: +30%
DeXe (DEXE)
Price: $20.48
24-Hour Gains: +21%
Arweave (AR)
Price: $15.76
24-Hour Gains: +18%
Mantra (OM)
Price: $5.57
24-Hour Gains: +15%
Top Crypto Market Losers Today
Official Trump (TRUMP)
Price: $25.50
24-Hour Loss: -9%
Jupiter (JUP)
Price: $1.04
24-Hour Loss: -8%
Pudgy Penguins (PENGU)
Price: $0.01419
24-Hour Loss: -7%
Optimism (OP)
Price: $1.39
24-Hour Loss: -6%
Overall, the broader market faces turbulence ahead of the PCE inflation data, as mentioned above. Nevertheless, market expert Michaël van de Poppe has posted on X, sparking some optimism over future movements.
“I don’t think we’ll see nothing from the FED this year,” Michaël stated. Further, he added that there could be “multiple rate cuts ahead, a weaker Dollar and a strong bull run in Bitcoin, Ethereum, Altcoins and commodities.”
Coingape Staff
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Dogecoin (DOGE) could be on the verge of an explosive price rally, as recent technical analysis reveals that the popular meme coin may be forming a distinctive Ascending Triangle pattern on its 4-hour chart. This bullish continuation pattern, combined with a rebound from an oversold Relative Strength Index (RSI), suggests that a breakout could occur anytime soon.
Dogecoin Eyes Breakout As Ascending Triangle Forms
An Ascending Triangle is typically seen as a bullish chart pattern, formed by a horizontal resistance line connecting swing highs and a rising trendline connecting lower lows. Interestingly, a crypto analyst, Trader Tardigrade, has identified what appears to be an Ascending Triangle forming on the Dogecoin price chart in the 4-hour timeframe.
Analyzing the analyst’s presented chart, Dogecoin’s price action shows a series of higher lows along an ascending trendline while facing resistance at $0.334 on the horizontal level. This Ascending Triangle formation suggests that buyers may be gaining strength, potentially leading to a breakout to the upside if the meme coin breaches the above resistance level.
Notably, the lower part of the chart shows that Dogecoin’s RSI indicator recently entered oversold territory, dropping below 30%. The RSI has since rebounded and is gaining significant momentum, with indicators suggesting it may have room to surge towards overbought zones above 70%. This positive shift in momentum indicates a steady increase in buying pressure, supporting the possibility of a Dogecoin price appreciation to new highs.
Based on the chart’s forecast, DOGE’s price could skyrocket toward the range between $0.355 and $0.360 if it successfully breaks above the Ascending Triangle resistance at $0.334. Conversely, a rejection at this resistance level could lead to a retest of the ascending trendline before another breakout attempt.
What’s Next For DOGE?
Despite reports from CoinMarketCap highlighting a price decline of over 6% in the past week, Dogecoin remains resilient, aiming for new highs above the $0.6 mark. A prominent crypto analyst, identified as ‘Coinvo’, has announced to his over 324,000 followers that a new Dogecoin all-time high is imminent.
The analyst shared a detailed chart illustrating the DOGE price action over a multi-year period on a weekly timeframe. He highlighted two primary resistance levels, which suggests that the meme coin could rise to a new ATH soon.
The first resistance level, $0.015, was broken in early 2021 during the previous bull run, leading to a parabolic price surge in Dogecoin. The second resistance level, $0.6, represents Dogecoin’s all-time high in 2021, which its current price looks to be approaching again.
DOGE is currently trading at $0.33, having experienced a prolonged downtrend and consolidation between 2022 and 2023. Based on historical trends, the meme coin’s price could be nearing its previous peak, as it follows a similar bullish trajectory as the 2021 bull run.
Featured image from Unsplash, chart from Tradingview.com
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