Cryptos Today: Bitcoin Sustains Highs of $20K Amid Explosion of Leveraged Positions to $9B

Bitcoin (BTC) dawns close to stability in the early hours of this Thursday (6), sustaining the level of US$ 20,000 recovered on Tuesday night (4), in what analysts point out as another proof of the strength of the economy. cryptocurrency after negative day on Wall Street and amid New York futures again bearish today.

Second most valuable crypto, Ethereum (ETH) is performing slightly better and is up 1.2% in the last 24 hours to $1,359. Among the top 10 assets by market cap, the biggest rise is XRP (XRP), which jumps 2.9%, still driven by the expectation of a favorable outcome for Ripple in the lawsuit brought by US regulators.

The stock market’s poor performance yesterday came as investors digested data showing resilience in the US economy, suggesting that fighting inflation still has a long way to go.

“Traders were quickly reminded that the economy is not falling off a cliff and that the Fed (the US central bank) may have to remain aggressive with its rate hike cycle next year.” Oanda, Edward Moya.

This week, investors keep an eye on the release of the next unemployment numbers on Friday (7). Next week, the market will be watching the new Consumer Price Index (CPI) for September.

“Bitcoin fundamentals still support healthy consolidation here and that should continue to be the case,” Moya said, unless employment and inflation data are higher than anticipated.

Despite the momentum of price consolidation, data from the derivatives market points out that a burst of volatility could be ahead for Bitcoin. According to Arcane Research, Bitcoin volume in perpetual leveraged futures positions has reached a new all-time high of 450,000 BTC, the equivalent of more than $9 billion.

The volume is positioned in Bitcoin perpetual swaps, an innovation in the cryptocurrency markets that offers speculative traders leverage – similar to futures contracts in traditional markets, but with no expiration dates.

According to Arcane, the eviction of these positions is expected to cause strong Bitcoin price movement – ​​whether in which direction, up or down. “Stay tuned for any breakout of the BTC trading range. These open positions are likely to exaggerate any directional movement,” the analysis house said in a report.

Watch: Crypto Regulation Threatened After Election Result; understand

The volume of BTC in these leveraged perpetual contracts skyrocketed to the equivalent of over 60,000 BTC in these first few days of October alone.

“This shows more positioning/engagement from investors,” says Florian Giovannacci, head of trading at brokerage Covario. Giovannacci notes that this is not a sign of bullish or bearish positioning, and that Bitcoin’s base levels (difference between futures and spot price) are a better indicator for this.

Bitcoin’s annualized basis for expiry in December is around 0.3%, according to data from exchange Deribit. “Bitcoin’s base levels still remain fairly stable, making it difficult to draw directional conclusions if that base doesn’t move,” he points out.

“The options market is more revealing, with a more optimistic positioning seen in greater demand for higher strike prices (which bet on a price jump)”, points out Giovannacci.

Check out the performance of the main cryptocurrencies at 7 am:

cryptocurrency Price Change in the last 24 hours
Bitcoin (BTC) US$ 20,166.92 +0.40%
Ethereum (ETH) US$ 1,359.69 +1.20%
Binance Coin (BNB) US$ 294.42 +1.00%
XRP (XRP) US$ 0.494588 +2.90%
Cardano (ADA) US$ 0.494588 +0.50%

Cryptocurrencies with the biggest gains in the last 24 hours:

cryptocurrency Price Change in the last 24 hours
Tokenize Xchange (TKX) $10.59 +18.90%
Evmos (EVMOS) $1.64 +13.50%
Ethereum Name Service (ENS) $17.34 +10.80%
Trust Wallet (TWT) US$ 0.978189 +7.00%
Uniswap (UNI) $6.84 +4.30%

Cryptocurrencies with the biggest drops in the last 24 hours:

cryptocurrency Price Change in the last 24 hours
Chain (XCN) US$ 0.068826 -5.40%
Celsius Network (CEL) $1.28 -4.50%
Classic Earth (LUNC) US$ 0.00029567 -3.70%
Zcash (ZEC) $56.29 -1.80%
Earth (MOON) $2.50 -1.60%

Check out how cryptocurrency ETFs closed in the last trading session:

ETF Price Variation
Hashdex NCI (HASH11) BRL 18.07 +0.16%
Hashdex BTCN (BITH11) BRL 24.59 -0.28%
Hashdex Ethereum (ETHE11) BRL 20.70 +0.63%
Hashdex DeFi (DEFI11) BRL 21.27 +1.28%
Hashdex Smart Contract Platform FI (WEB311) BRL 18.39 +1.60%
QR Bitcoin (QBTC11) BRL 6.55 -0.15%
QR Ether (QETH11) BRL 5.05 -0.98%
QR DeFi (QDFI11) BRL 3.81 -2.29%
Crypto20 EMPCI (CRPT11) BRL 5.14 +0.19%
Invest NFTSCI (NFTS11) BRL 26.83 -1.32%

See the main news from the crypto market this Thursday (6):

EU bans offering crypto services to Russians

The European Union has announced a sweeping ban on providing crypto services to Russians, tightening sanctions after what it calls “fake” separatist votes in four Ukrainian regions. The news was first reported by CoinDesk last week.

The bloc introduced an eighth set of economic and political measures against Russia after the start of the war, reinforcing an earlier rule that limited cryptocurrency payments to European wallets to €10,000.

The measures are mainly aimed at limiting the price of oil that Russia can sell, and follow the country’s attempt to annex the Donetsk, Luhansk, Kherson and Zaporizhzhia regions.

“Existing bans on cryptocurrencies have been reinforced by banning all cryptocurrency wallets, accounts or custody services, regardless of wallet value,” the European Commission said in a statement Thursday.

South Korea announces Do Kwon’s passport invalidation

South Korea’s Foreign Ministry issued an alert Wednesday announcing that it would invalidate the passport of Terra (LUNA) project co-founder Do Kwon, a move the government said it had been considering for a month.

According to the authorities, the measure was taken due to the “inability to deliver” the order to return the passport. A document attached to the alert also states that the ruling means Kwon could be rejected if he tries to apply for his passport to be reissued.

“Our department would like to send you a ‘Notice of Return Passport Request’ to you by registered mail,” the message reads. “…we inform you that your passport will be invalidated”.

A passport invalidation would mean Kwon could no longer leave South Korea. Also, if he is not currently in the country, he would also have a harder time traveling elsewhere. Authorities gave Kwon 14 days from the issuance of the notice to return the passport.

Warner seeks metaverse director

Warner Music Group continues to expand its Web3 strategy by announcing a vacancy for Senior Director of Metaverse Development.

The role, posted on LinkedIn yesterday, involves leading its metaverse strategy, including “metaverse music entertainment experiences and games.”

The metaverse projects, says Warner, will focus on “immersive experiences and strategic content integration.”

New blockchain app wants to be a decentralized alternative to Google Drive

A new mobile app from the decentralized data storage platform ArDrive released for Android wants to be an alternative to Google Drive for data storage.

ArDrive Mobile is a decentralized storage app that offers permanent and unlimited data size online storage.

The solution uses the Arweave blockchain and charges upload fees in the AR cryptocurrency. ArDrive has around 10,000 users with over 500 monthly active users, the company says.

An iPhone version of the app is under development.

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