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Over the past weekend, the broader crypto market seems to have regained its seasonal strength. In the early hours of Monday (Asian trading hours), BTC sprung past the $47k handle after posting a 5.5% gain over the past 10 hours to attain a three-month high price. With that, the number one cryptocurrency by market cap is now a mere breath away from the the $47.7 level that it started 2021 (a good year for BTC and the crypto market in general) off with. The next major resistance for BTC lies in the $49.2k zone. A clear breakout above said resistance zone could open the doors to aggressive gains above the $50k psychological barrier. On the flip side, if BTC fails to stay atop the $47k handle, this may result in a retracement to find some support near the $46k region. Some analysts attribute the crypto market's rallying momentum to rising institutional demand and the broader rally in global risk-on assets. They also expect this trend to continue, at least in the near-term.
In a similar vein, ETH is currently (as of the time of writing) trading comfortably above the $3,300 level after posting a 5.6% gain from 24 hours ago. Most major altcoins are well into the green, whilst some major speculative memecoins have also been seeing positive returns within the last 24 hours. This sustained momentum within the spot market is supported by several on-chain datapoints. For one, BTC has just closed above the short-term BTC holders' cost basis for the first time since December 2021, suggesting a cautiously bullish outlook for the broader crypto market. Of course, there is a chance that the crossover may a bull trap too, which may then eventuate in a capitulation. Therefore, it will be prudent for crypto investors to still remain nimble and alert now.
Over the past weekend, BTC's move to the $44k level and beyond seems to primarily be led by strong spot demand. This demand is echoed within the derivatives market too, as said derivatives market has just seen a huge uptick in Open Interest (OI) from last Friday. Further, the buildup in the futures OI doesn't seem to come exclusively from speculative traders who are holding aggressively long positions, suggesting that this rallying momentum may actually be here to stay for the near-term at least. Within the options market, the Implied Volatility (IV) is currently (as of the time of writing) pricing itself lower and assuming a steeper contango structure.
The Avalanche Foundation and web3 social media platform Op3n have joined forces to announce a $100 million initiative, entitled the Culture Catalyst Initiative, to empower content creators to build projects on the Avalanche network. The first recipient of this funding initiative, which is paid out in AVAX, is the musician Grimes and her vision for an "intergalactic metaverse book" for children. Ava Labs president John Wu has high hopes for the initiative, praising the collaboration as "a watershed moment for entertainment and pop culture applications on Avalanche".