Cryptocurrency traders are finding themselves in a state of tranquility as the crypto market enters a zen mode, with Bitcoin maintaining stability at $70,000 ahead of its anticipated halving event. While major financial centers were closed for the long Easter weekend, Bitcoin and Ether remained relatively flat as they began the trading week.
Bitcoin’s price remained steady at $70,000, while Ether hovered around $3,600. Despite this calmness, options volatility due to the upcoming Bitcoin halving event remained high. Jun-Young Heo, a derivatives trader, explained that while BTC and ETH showed less movement compared to previous weeks in March, the implied volatility of front-month options remained above 75%.
Funding rates also remained inflated, with major exchanges reporting funding rates of 6bps to 8bps for large-cap perpetual futures. The global open interest for BTC and ETH perpetual futures reached a staggering $35 billion. These factors indicate that the market may soon return to a more volatile regime.
According to QCP Capital, Bitcoin’s rally before the long weekend was driven by positive inflows from Bitcoin exchange-traded funds (ETFs). A total of $243.5 million flowed into these ETFs on March 27, with an additional $182 million inflow recorded on March 28, as reported by Coinglass data.
As the anticipation builds for the upcoming Bitcoin halving and volatility levels potentially rise, traders are staying alert and prepared for any market fluctuations that may lie ahead.