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It’s the weekend, and Bitcoin is yet again dropping, going back under $48,000 today. Since February, the Bitcoin market has been extremely choppy, constantly making attempts to the upside only to fall back down. However, this is to be expected after experiencing a monster rally from March 2020 when the price crashed to $3,800 to surpass $50k in the first week of February and a new ATH at $65,000 in mid-April. Currently, $45k offers support to Bitcoin price, and if this fails, we could go down as much as to $38,000, which would be a good buy the dip opportunity. QCP Capital, Asia's Digital Economy traders, have been looking for some downside pressure on spot price today in response to market short gamma. “Might see some gravity from the 45-46k strike level,” they said. This has been due to a massive BTC downside (puts) bought in the NY session — almost 3,000 BTC worth over $125 million were bought for 46k and 45k strikes with 21-May and 28-May expires, respectively brings the largest put-skew seen in a very long time.
CME Bitcoin Market Remains Unchanged
Amidst this price action, total interest for CME Bitcoin futures remained virtually unchanged, losing only about 50 contracts. Other Reportable traders have almost no short exposure and own over 25% of all long contracts outstanding, remaining close to their record net-long levels. Non-Reportable are meanwhile significantly net-short for the first time in nearly a year. Asset managers are once again net short but make up only a tiny fraction of the overall float while Leveraged Fund positioning is slightly less short than its historical extremes though still mostly net-short. “These conditions have exhibited a slightly bullish statistical edge historically,” noted Market Science.
Bitcoin Changes Everything “For The Better”
This week’s weak price action was affected by first Elon Musk announcing that Tesla won’t accept BTC as payment for its car purchases citing environmental concern and saying that he would not be working with DOGE developers to advance its development. [coin_stats_table symbol="DOGE"] While these concerns “will have some impact” on the market, Dan Morehead, the head of the crypto hedge fund Pantera Capital Management is still bullish on BTC and sees it reaching $115,000 by August.
“The ESG concerns have come up more in the past three or four months. It’s a topic no one talked about a few years ago. The space as a whole, the majority of the coins in the space don’t use electricity, so it shouldn’t be a big issue for the industry as a whole.”
Meanwhile, Jack Dorsey’s Square announced that for the time being, they are done with all the Bitcoin buying for its corporate treasury and will focus on clean energy usage in its mining. Bitcoin changes everything “for the better,” Dorsey said in a tweet, adding that the payment company would “forever work” to make it better. Twitter co-founder and CEO also said in a follow-up tweet that “no single person (or institution) will be able to change it, or stop it.” As for a correlation of institutions, that is “worth considering,” but even then, Dorsey believes “the overwhelming mass of interest makes it resilient to even this.” He further went on to say that it is also “extremely unlikely” that a single person (or institution) can make a better cryptocurrency as “the conditions needed to create and sustain bitcoin were very special.”