Ether (ETH) was trading just above $3,000 during the opening hours of the Asian trading day as the CoinDesk Indices Ethereum Trend Indicator turned negative, signaling a bearish shift in momentum.
At the same time, Bitcoin (BTC) is trading just above $64,000 after challenging it for most of the morning trade in Asia.
“An unexpected rise in US Treasury yields, a strong dollar, and geopolitical risks in the Middle East are weighing on the crypto market,” Joon-Young Ho, a derivatives trader at Singapore-based Presto, said in a Telegram interview with CoinDesk. It became,” he said.
Mr Yeo said the risk-off sentiment was also reflected in the derivatives market, with funding rates on some exchanges turning negative and three-month basis yields “slumping” to 10%. Ta.
“Short-term put options are more expensive than call options on both BTC and ETH,” Heo continued.
Liquidations over the past 12 hours were almost evenly split between bullish and bearish futures bets, with $31.1 million of long positions liquidated and $36.49 million of short positions liquidated.
“While investors have missed new all-time highs, they don’t seem willing to turn completely bearish,” Justin Danesan, head of business development at Hong Kong-based crypto market maker Keylock, wrote in a note to CoinDesk. ” he said.
CoinDesk 20, the world's largest index measuring the performance of digital assets, was trading virtually flat at 2,174.
“It's a difficult environment to navigate with a series of positive crypto-centric catalysts,” he continued. On the other hand, interest rate expectations have become more hawkish, given the alarmingly high inflation and, of course, rising tensions in the Middle East, and macro aspects appear to be dominating all risk assets.” Ta.
Danesan also pointed out that in cryptocurrencies, sideways price movements and range-bound settlements can lead to leveraged traders waiting to see what happens and violent liquidation events when the situation calms down. He pointed out that there is a possibility that this could set the stage for a more explosive move that will bring about a new move. At the market.
“It may take time or other triggers rather than known events to turn this trend back to a bullish direction,” Heo added.
