Meanwhile, the US market has closed again. We take a look at the live Bitcoin price and the prices of the top 25 crypto coins. Unfortunately, we see another price drop. We list possible causes.
We begin, of course, with the live Bitcoin price and the prices of the top 25 crypto currencies.
Live Bitcoin price drops, prices top 25 crypto coins mostly negative
The live Bitcoin price at the time of writing is EUR 37,325.38 ($42,892). This is 2.50% lower than when the US markets closed yesterday.
The prices of the top 25 crypto coins are also mostly negative. We do see some positive numbers. The biggest gain is for the Near (NEAR), which is trading +10.25% in 24 hours. However, most prices are negative. Biggest faller is Algorand (ALGO), which loses 8.78%. On the site of Tradeincrypto.com you can of course analyze all live crypto prices 24 hours a day.
So Bitcoin is making a sharp negative turn compared to this afternoon. The reason for this was that the market was not strong enough to break through the resistance at $44,000. This had 3 reasons.
IMF warns of correlation Bitcoin and equities
We already signaled several times that the correlation between Bitcoin and equities is increasing. This has now reached policymakers at the International Monetary Fund (IMF) and they published a blog today about this correlation. The tone was not optimistic.
They see that increased correlation could amplify a shock effect when negative events occur. This could cause prices of investments to fall ever faster with all the risks that this entails. When they take volatility and risk into account they foresee that especially countries that strongly embrace crypto are at extra risk. Now this announcement is already not pleasant, but the resulting plea for global regulation makes investors even more uneasy.
Iran also gives BTC investors a headache
Normally it is a bullish signal when a country embraces Bitcoin as a means of payment. In the case of Iran, the situation is slightly different. Iran has announced that it recognizes Bitcoin as a payment method for international business payments. They have announced that within 14 days they will come up with a mechanism that will allow Bitcoin to be used against any other currency and to make transactions.
This sounds nice, of course, but Iran has been heavily sanctioned by many Western countries. So it is mostly prohibited to do business with this country. Now that this mechanism is being launched and thus anyone can pseudonymously do business with this country under magnifying glass, it is not hard to imagine that many Western governments will be concerned about violating the sanctions. This naturally leads to much critical attention. The call for regulation is then never far away.
Do derivatives traders determine the BTC price?
The third cause for the reluctant market can be found with the positions of options traders. If we analyze on-chain data, as Coinglass shows, we find that options traders have solid support lying around $40,000, while taking profits around $44,000. This actually keeps Bitcoin consolidating between $40,000 and $44,000. Therefore, a fluctuation between these two ranges is not immediately (anymore) seen by the market as shocking.
For the interested traders, there is of course quite a nice return to be made in this options market. One of the parties offering options trading in Bitcoin is Huobi. Our colleagues at Tradeincrypto.com are happy to introduce this great crypto exchange to you.
What Bitcoin quotes do traders keep an eye on?
As we just pointed out, traders are not really worried. They still see the current price action as consolidation. Well-known analyst Scott Melker indicates that, as far as he is concerned, Bitcoin has not yet chosen a clear direction. He believes that the price must first head towards $44,000 and then on to $46,000 to justify a real bull run. Analyst Daan Crypto Trades also believes that the market will only give a truly bullish signal once the price passes $45,700.
As mentioned, for the time being derivatives traders are placing fixe support around $40,000, so it seems a matter of time before the largest crypto currency rises (again). We will of course continue to follow the developments.
Want to stay informed about the latest price developments?
You can always follow the developments yourself with our WANT crypto analyses or the background articles and previews on the crypto market and Bitcoin. Of course, you can also follow the live quotes 24 hours a day if you want to stay informed in real time. Are you interested in other investments besides crypto? Then our weekly price forecast might be a reading tip.
Note: We never give financial advice, so our contributions should not be interpreted as such. Always do your own research and decide rationally if, when, what and how much you want to invest in.