Ethereum
Bitcoin and Ethereum stable despite leverage
During the weekend, Bitcoin (BTC) and Ethereum (ETH) showed little price movement after significant leverage of $400 million on Friday, which led to lower open interest and trading volumes, slowing market momentum.
Analysts at Presto Research, told CoinDesk that they anticipate a return of market volatility in the coming week due to several macroeconomic events, including the publication of the Consumer Price Index (CPI) on Wednesday, the meeting of the Federal Open Market Committee (FOMC) on Thursday and a speech from Treasury Secretary Janet. Yellen Friday.
The release of higher-than-expected nonfarm payrolls (NFP) figures on Friday, which showed the U.S. economy added 275,000 jobs compared to the 185,000 forecast, led to a sharp drop in Bitcoin prices, passing from $71,000 to $69,000. This drop is due to a record accumulation of leverage in Bitcoin futures, which ultimately cost the bulls dearly.
The Connection of Risk Assets
Furthermore, a drop in the GameStop (GME) meme stock price appears to have a negative impact on riskier assets, such as alt tokens and meme coins. Major coins like Dogecoin (DOGE) and Shiba Inu (SHIB) saw losses of up to 10%.
Since Friday, open interest in various tokens has fallen from $99 billion to $60 billion, indicating that traders have significantly reduced their bets. Additionally, trading volumes fell by 10% in the last 24 hours. according to Coinglass data. In early European hours on Monday, BTC was trading just above $69,400, while ETH was hovering around $3,660.
The news follows recent positive reviews regarding Bitcoin by NSA whistleblower Edward Snowden. Following a significant market disruption caused by a technical glitch on the New York Stock Exchange, he simply wrote:
Bitcoin fixes this problem.
The comment was largely intended to highlight the reliability of Bitcoin, as it has near-perfect availability and has only seen two notable incidents. The first being “value excess incident” in 2010where a bug fixed in five hours created billions of BTC out of thin air.
The second was a temporary network split in 2013 caused by an incompatible software upgrade. Both issues were quickly resolved by core developers, strengthening Bitcoin’s resilience.