Thursday, May 23, 2024

Market Wrap: Bitcoin Maintains Stability as Risk Aversion Declines.

On Monday, Bitcoin’s struggle to look up to the market continued. However, the only good news seems to be that Bitcoin is stabilizing at above $40,000 support level at the time of reporting. Bitcoin is down by 3% in one day, and experts and analysts expect that this downward trend will come to an end by the end of the week. Prior to the flash crash that happened in early September, funding rates were going strong. It usually implies an influx of longs levering upwards. In this case, however, the market did not stay in an aggressive position. It had made the outcome remotely better.

The funding rate is generally defined as the cost that is needed to fund any long-term position within the market. It is a kind of derivative in the crypto sector, the same way futures and contracts are in conventional financial markets. As of now, all technical charts predict a strong overhead resistance upwards of $45,000. It has the potential to limit shot-time purchasing power. It is also projected that market volatility will maintain itself throughout the week in the US. Since the U.S. Federal Reserve policy meeting ended on Wednesday and the quarter-end bitcoin option expired around Friday, the market will continue to be unpredictable. However, experts are of the opinion that this would have very little to no bearing on the long-term prospects of Bitcoin. These short-term ups and downs do not change much in the larger picture.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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