Bitcoin traders suggested caution as rates declined toward $50,000 for the first time in two weeks. Meanwhile, the options market braced for the uncertainty ahead of a record $6 bn contract expiration on March 26.
Significantly, markets were lifted on the news of Microsoft’s decentralized identification network, which had been deployed on BTC’s main net. The four-year-old project intends to make it easier to find organizations online without relying on a third party. The same will also be with separate individuals.
The second news was that KiwiSaver, a New Zealand pension fund, had put 5% of its $350 million funds into the dominant cryptocurrency.
On March 26, at 03:19 PM ET, the dominant cryptocurrency in the world was unchanged to marginally lower at nearly $52,100. Rates had previously declined to as low as $50,360. Notably, Bitcoin has not traded below $50,000 since March 8. The largest cryptocurrency hit its lifetime high of $61,000 earlier this month.
On Friday, the world’s famous cryptocurrency, Bitcoin, was trading around $53,488,66.
Some derivatives metrics show that the Bitcoin price will not sink below $50,000
Remarkably, authors at the General Service Administration (GSA) of the United States government are gushing about “cryptocurrency spring fever”. It’s possible that the agency’s decision to auction off over $300k worth of Bitcoin next week isn’t a coincidence. Furthermore, in the Bitcoin options market, there’s also the monthly expiration on March 26.
If we believe analysts and the price falls to nearly $44,000, we will reach a max point, where buyers have the most to lose and sellers have the most to gain. Although Bitcoin’s bullish momentum has waned, some derivatives metrics, for example, a bullish futures premium and a neutral skew, show that the price will not sink below $50,000. According to an announcement posted on the agency’s website on March 24, the GSA offers commission-free bidding on 6.79 Bitcoin. The bidding will be on 10 lots.
