Bitcoin and other top non-stablecoin cryptocurrencies experienced gains on Friday morning in Asia, following positive economic data indicating a rebound in the U.S. economy despite repeated interest rate hikes. The first-quarter GDP growth surpassed expectations, and initial jobless claims came in lower than anticipated. Additionally, Fidelity Investments, an asset manager, filed an application to offer a spot Bitcoin exchange-traded fund (ETF), reinforcing institutional interest in digital assets.
A significant Bitcoin revival and Ether options are scheduled for Friday, potentially amplifying crypto market volatility. Bitcoin has been hovering above the $30,000 mark for the past week, and this expiration could have an impact. Deribit, a Panama-based exchange hosting over 85% of global trading in these options, will see the expiration of 158,774 Bitcoin contracts worth $4.8 billion and 1.23 million ether options valued at $2.3 billion. Options are financial derivatives that grant the right, but not the obligation, to buy or sell an underlying asset at a specified price within a specific time frame.
Bitcoin Now: Rise in Top Cryptocurrencies, Fidelity’s ETF Bid, and Solana’s Resilience
Bitcoin cash in Dollars rose by 1.05% to $30,453 over the past 24 hours, according to CoinMarketCap data. The world’s largest cryptocurrency by market capitalization has recorded a 1.43% increase over the past seven days. Ether also saw a gain of 1.28% to reach $1,853, although it is down 1.4% for the week.
All of the top 10 non-stablecoin cryptocurrencies experienced positive price movements. Solana stood out with a notable 12.35% jump and a 7.56% weekly gain. This comes despite the announcement from Cardinal, a Solana non-fungible token (NFT) protocol, about winding down operations due to challenging macroeconomic conditions. Cardinal stated on Thursday that it would disable new deposit instructions on July 19 and cease operations on features such as staking and new NFT rentals.
Furthermore, Fidelity Investments has resubmitted its application for a spot in Bitcoin ETF. The proposal, filed with the Securities and Exchange Commission (SEC), suggests that the COBE exchange intends to list and trade shares of the Wise Origin Bitcoin Trust. Fidelity’s previous Bitcoin ETF application was rejected by the SEC in 2021.
Significance of the Expiration and Fidelity’s ETF Move
The upcoming expiration of options contracts is garnering attention due to the recent Bitcoin revival rally and heightened activity around the $30,000 price level. Luuk Strijers, the chief commercial officer at Deribit, highlights the potential pressure in either direction, with market makers buying to offset short positions if Bitcoin goes up or selling if it goes down. Market makers, who provide liquidity to exchanges, play a crucial role in the cryptocurrency market.
The total market capitalization of cryptocurrencies rose by 1.24% to reach $1.17 trillion, while trading volume declined by 12.22% to $29.96 billion, according to data from CoinMarketCap.
