The dynamics of the movement of assets on the exchange wallets testifies to the weakening of the bearish sentiments of traders, Coinesk draws attention.
Bitcoin inflows, based on a seven-day average, turned into outflows for the first time since April 22. Investors prefer to withdraw coins for personal storage, probably in anticipation of a rise in the rate in the longer term. Prior to that, they consistently transferred more bitcoins to exchanges than they withdrawn, where they received the opportunity to immediately sell them.
Bitcoin yesterday made an attempt to gain a foothold above $ 40,000. This came shortly after the announcement of the readiness of the administration of US President Joe Biden to submit to Congress a draft budget for 2022 with a total expenditure of $ 6 trillion – the largest value since the Second World War. In the past, Bitcoin has been positively impacted by increased spending by the US government, as happened, for example, after March 2020.
“The authorities are proposing to drive our country deeper into debt, while destroying the value of our currency. Historians will later write that the authorities hastened the destruction of the world’s reserve currency, while citizens welcomed it, ”said Anthony Pompliano, co-founder of Morgan Creek Digital.
Today, Bitcoin is waiting for the most modest expiration of options since the beginning of this year. 55,900 contracts with a par value of $ 2.2 billion are subject to settlement. Open interest on all expiration dates within two weeks by May 23 fell by almost half to $ 6.5 billion, together with the price of the cryptocurrency. At the end of March, contracts were calculated for a record $ 6 billion, and at the end of April – for more than $ 4 billion.
The point of maximum pain, to which, as discussed earlier, the markets tend to move ahead of expiration, this month is located at the level of $ 50,000, that is, 25% above current values. Some investors expect it to play the role of a magnet again, but the relatively low expiration volumes do not favor this scenario.