The cryptocurrency market is currently experiencing a period of stability, particularly with Bitcoin holding steady at $70,000 in anticipation of the upcoming halving event.
Both Bitcoin (BTC) and Ethereum (ETH) have seen minimal movement at the start of this trading week, partly due to the closure of major financial centers worldwide for the Easter weekend. As of the latest data from CoinDesk Indices, Bitcoin remains at $70,000, while Ether is trading around $3600.
The CoinDesk 20 (CD20), which tracks the largest and most liquid digital assets, has seen a modest increase of 1.9%, reaching a trading value of 2,750.
According to Jun-Young Heo, a derivatives trader at Presto Labs based in Singapore, last week exhibited relatively subdued activity for BTC and ETH compared to previous weeks in March, with weekly realized volatility dropping below 50%.
However, Heo highlights that anticipation surrounding the Bitcoin halving event, expected around April 20, has led to elevated implied volatility in front-month options, exceeding 75%.
Heo highlights that funding rates continue to be elevated, with the majority of large-cap perpetual futures on major exchanges showing rates ranging between 6 and 8 basis points (bps). Additionally, the global open interest for BTC and ETH perpetual futures has reached $35 billion. He suggests that the markets may soon return to a more volatile state.
Meanwhile, according to a note from QCP Capital on Telegram, Bitcoin experienced a rally leading up to the long weekend, driven by positive inflows into Bitcoin ETFs amounting to $243.5 million on March 27. Additional data from Coinglass indicates that this inflow trend continued on March 28 with an additional $182 million influx.
