- Bitcoin and Ether prices are currently stagnant.
- Funding rates on bitcoin and ether perpetual futures remain positive.
Quiet Market and Wide Bid/Ask Spreads
In the crypto market, it is challenging to predict the next direction of bitcoin and ether prices. Both cryptocurrencies are trading below their 20-day moving averages, indicating a quiet market with less bullish energy. To gauge sentiment, traders are keeping a close eye on trading volumes, as they can amplify or mute the impact of any directional move.
However, the bid/ask spreads, which represent the difference between the buying and selling prices, have widened significantly. Market makers exiting the crypto space have contributed to the stuck prices of digital assets, creating a wind tunnel effect. This situation has made it difficult for prices to break out of their current range.
Positive Funding Rates in Crypto Markets
Funding rates on perpetual futures for bitcoin and ether remain positive, suggesting that market sentiment remains optimistic for now. Perpetual funding rates are payments made between participants who hold long or short positions in futures markets. Positive funding rates indicate a bullish sentiment, as long position holders pay a fee to short position holders.
Conversely, negative funding rates signify a bearish sentiment. Bitcoin has shown positive funding rates in 8 out of the last 10 trading days, while ether has exhibited positive rates in 7 of the most recent days, with 3 instances of rates declining to zero but not falling below zero since April 6.
In the traditional finance space, the stock market has been relatively quiet as traders assess the likelihood of U.S. lawmakers reaching an agreement to avoid a federal government default. The Treasury’s borrowings are approaching the official limit, adding to the uncertainty in the market.
Moving forward, market participants will closely monitor key economic events, such as China’s Retail Sales data, the United Kingdom’s Claimant Count Change, and Bank of Canada’s Consumer Price Index Core, as these reports can potentially impact market sentiment and provide insights into the global economic outlook.
Despite the current market conditions, there have been notable developments in the cryptocurrency space. Binance, one of the largest crypto exchanges, announced its decision to cease operations in Canada due to regulatory challenges. This news follows Bitcoin’s recovery above $27,000 after a recent price plunge.
Additionally, professional services giant EY Global revealed its plans to launch an Ethereum-based platform to help enterprises track their carbon emissions and carbon credit traceability.
In conclusion, the crypto market is currently experiencing a period of stability, with bitcoin and ether prices showing little movement. Positive funding rates indicate that sentiment remains optimistic. However, wide bid/ask spreads and the wind tunnel effect created by market makers exiting the crypto space have contributed to the stagnant prices.
Traders are closely monitoring trading volumes and upcoming economic events to gain insights into the market’s future direction. Meanwhile, notable developments, such as Binance’s exit from Canada and EY Global’s Ethereum-based platform, highlight ongoing advancements in the cryptocurrency industry.