Bitcoin options recently expired, and the cryptocurrency has only dropped by 0.6% to nearly $107,000. This stability is reflected in the low volatility of bitcoin, with Deribit’s BTC Volatility Index hitting...
Bitcoin options recently expired, and the cryptocurrency has only dropped by 0.6% to nearly $107,000. This stability is reflected in the low volatility of bitcoin, with Deribit’s BTC Volatility Index hitting its lowest level since late 2023. However, the broader crypto market, as indicated by the CoinDesk 20 index, is down 1.2%.
Deribit’s Chief Commercial Officer, Jean-David Péquignot, mentioned that the reduced volatility in bitcoin could be a signal that the market is gaining confidence in its role as a macro-hedge. Geopolitical tensions may have eased temporarily, but investors are still cautious and monitoring economic indicators like the U.S. personal consumption expenditures report for directional clues.
The market seems to be in a wait-and-see mode, with potential external catalysts like the NATO-Russia tensions having the potential to test the market’s resilience. Additionally, the anticipation of the U.S. Federal Reserve possibly announcing a successor to Fed Chair Jerome Powell led to a decline in the U.S. dollar index.
Equity markets, on the other hand, have been performing well, especially in Asia, which hit a three-year high amidst optimism over U.S.-China rare-earth trade agreements. However, the focus remains on the upcoming U.S. PCE report, which could impact the trend and potential rate cut decisions for July.
Looking ahead, the crypto market is gearing up for the introduction of spot-quoted futures by CME Group and Coinbase Derivatives launching perpetual-style crypto futures in the U.S. All eyes are also on several macroeconomic events and governance votes happening in the crypto space.
Stay tuned for more updates on market movements and token launches to make informed decisions in the evolving crypto landscape.
