10.1 C
Tuesday, May 24, 2022

Bitcoin Price Has Hit $40K

The Bitcoin price has been facing a massive period of volatility ever since it moved from a price of $52,490 to $42,800. In the meantime, the support of $45,000 was in a period of stasis for a couple of days despite it being tested heavily which then led to a trigger of the price of $3,400 on an up-and down-swing on the 13th of September.

There is no doubt that traders have started betting on a decrease in its price, along with shorts have taken the upper hand since the liquidation of around $3.54 billion worth of long futures contracts on the 7th of September.

Professional Traders Of Bitcoin Have Been Bullish For The Past Five Weeks

- Advertisement -

The announcement on the 13th of September by MicroStrategy claimed that it would be adding around 5,050 Bitcoin at an average price of around $48,099- but unfortunately, it wasn’t enough to reestablish confidence in the cryptocurrency.

This has obviously not been helped with the price of the currency remaining unchanged at a price of $44,200. While the impact of the short may be felt immensely, it seems more plausible that regulatory concerns would continue to suppress the markets as the US Treasury Department has reportedly discussed several potential regulations for private stable coins- as was reported by Reuters on the 10th of September. 

The quarterly futures of Bitcoin have been the preferred instruments of arbitrage desks and whales simply because they offer a significant advantage that is lacking in a fluctuating funding rate. However, this could also seem pretty complicated for retail traders due to their settlement date and the price difference that takes place from spot markets. 

- Advertisement -

When most traders opt-out for perpetual contracts, most derivative exchanges charge a fee for every eight hours which is dependent on which side is looking for more leverage.

- Advertisement -

Follow Us


Latest news