Investors shelter in short-term Treasuries, reducing Bitcoin’s chance of rallying to $30K

  • 📰 Cointelegraph
  • ⏱ Reading Time:
  • 60 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 27%
  • Publisher: 51%

Coin Coin Headlines News

Coin Coin Latest News,Coin Coin Headlines

Worries about the global banking system prompted traders to take shelter in short-term Treasuries and noshitcoins says these concerns, plus BTC derivatives data calls the current rally to $28,000 into question.

from 11 large banks may not be enough to solve the FRB's liquidity problems.

The yield on 6-month U.S. Treasuries, for example, have decreased from 5.33% on March 9 to 4.80% on March 20. As investors prepare for the impact of inflation, recession, or both, this development indicates a greater demand for short-term instruments. The change since March 9 reversed the entire movement from 2023, with the indicator closing 2022 at 4.77%.

As a result, futures contracts on healthy markets should trade at a 5% to 10% annualized premium — a situation known as contango, which is not unique to crypto markets.Since March 15, the BTC futures premium indicator has remained unchanged at 2.2%, indicating no additional demand from leveraged buying activity. Numbers below 5% indicate pessimism, which is not what one would anticipate after price gains of 36% in eight days.

The 25% delta skew is a telling sign showing when market makers and arbitrage desks are overcharging for upside or downside protection. In bear markets, options investors give higher odds for a price dump, causing the skew indicator to rise above 8%. On the other hand, bullish markets tend to drive the skew metric below -8%, meaning the bearish put options are in less demand.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

noshitcoins That's GOOD cuz those are ones who are a 'Drag' on BTC Price Progress. They don't Belong in Crypto. They luv the 'Safety' of Trsy and Fiat. Let them Stay there. Less Volatility for BTC and Crypto.

noshitcoins 28k is just the beginning

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 562. in COİN

Coin Coin Latest News, Coin Coin Headlines