Crypto Analyzer

The Stability of Bitcoin (BTC) and Ether (ETH) Prices Ahead of the Bitcoin Halving Event

Bitcoin (BTC) and Ether (ETH) are currently experiencing a period of stability in their prices as the crypto market remains relatively calm leading up to the highly anticipated Bitcoin halving event. The trading week started off with both cryptocurrencies showing minimal fluctuations, amidst the closure of major financial centers globally for the long Easter weekend.

According to Jun-Young Heo, a derivatives trader at Singapore-based Presto Labs, the past week saw BTC and ETH exhibit relatively subdued movement compared to the volatility observed in March, with weekly realized volatility dropping below 50%. However, the impending Bitcoin halving event scheduled around April 20 has kept the implied volatility of front-month options elevated above 75%, indicating potential upcoming market volatility.

Heo pointed out that funding rates remain high, with most large-cap perpetual futures in major exchanges registering 6bps to 8bps funding rates. Additionally, global open interest for BTC and ETH perpetual futures has reached a significant $35 billion, suggesting a strong interest in these assets despite the current stability.

QCP Capital highlighted in a telegram note that bitcoin saw a rally before the weekend due to positive inflows on bitcoin ETFs, with $243.5 million flowing in on March 27 and an additional $182 million on March 28 based on Coinglass data. This influx of funds into bitcoin ETFs indicates growing investor confidence in the cryptocurrency market.

As the market gears up for the Bitcoin halving event and with continued interest from investors in bitcoin ETFs, the stability in BTC and ETH prices may face potential disruptions as market conditions could shift towards increased volatility in the coming weeks.