Bitcoin ETFs have been continuously sold off in the past five days, causing a significant drop in value. According to data from Coinglass, on June 17th, the US Bitcoin ETF saw a massive sell-off, resulting in a reduction of 3,169 Bitcoins, worth over $200 million. Notably, prominent institutions such as Fidelity sold off 1,224 Bitcoins, valued at $80.34 million, while Grayscale also sold off 936 Bitcoins, worth over $61.40 million. The sell-off by these two major players undoubtedly had a significant impact on the market.
This sell-off has created more uncertainty regarding the future direction of the Bitcoin market, emphasizing the need for effective risk management. It is essential to note that the next Federal Reserve interest rate meeting is approximately 38 days away, adding to the overall market apprehension.
In terms of market analysis, the price of Bitcoin has dropped by 2.85% in the past week, while Ethereum’s price has increased by 1.26%. These trends are depicted in the accompanying price charts for both Bitcoin and Ethereum.
The charts also display the price-volume distribution, indicating that both Bitcoin and Ethereum have experienced significant volatility and oscillation within densely traded ranges.
Furthermore, the charts illustrate the trading volume and open interest for Bitcoin and Ethereum. It is evident that the largest trading volume for both cryptocurrencies occurred on June 18th, when their prices dropped. Additionally, Bitcoin’s open interest decreased, while Ethereum’s open interest slightly increased.
The historical and implied volatility charts show that the highest volatility levels for both Bitcoin and Ethereum were observed on June 14th. However, the implied volatility for both cryptocurrencies has risen since the beginning of the week.
There were no significant event-driven data releases during the past week.
The momentum sentiment analysis reveals that among Bitcoin, gold, Nasdaq, Hang Seng, and the Shanghai Composite, gold exhibited the strongest performance, while Bitcoin performed the weakest.
In terms of lending sentiment, the average annualized lending yield for USD in the past week was 10.8%, with short-term rates reaching around 12.6%.
The funding rate and contract leverage sentiment for Bitcoin indicate an average annualized yield of 9.6% and a return to low levels of contract leverage sentiment.
Regarding market correlation and consistency sentiment, the selected 129 cryptocurrencies maintained a correlation of approximately 0.88, indicating high consistency among different varieties.
The overall market sentiment, as indicated by market width sentiment, suggests that out of the selected 129 cryptocurrencies, only 4% of them had prices above the 30-day moving average, compared to Bitcoin’s 8.6%. Additionally, 2.4% of the cryptocurrencies had prices that were more than 20% above the lowest point of the past 30 days, while 4.7% had prices that were less than 10% below the highest point of the past 30 days. This data suggests a general downward trend in the market for most cryptocurrencies.
In summary, the past week witnessed significant price fluctuations and declines in both Bitcoin and Ethereum, reaching peak volatility on June 18th. The trading volume for these cryptocurrencies also reached its highest level on the same day. Bitcoin’s open interest decreased, while Ethereum’s slightly increased. The implied volatility for both cryptocurrencies saw a slight increase. Bitcoin’s funding rate declined to a low level, possibly reflecting a decrease in market participants’ leverage sentiment towards Bitcoin. Additionally, market width sentiment indicates a continued downtrend for most cryptocurrencies, suggesting overall weakness in the market.
