Coincapturewallet: Uncertainty in the crypto market will remain

Coincapturewallet: Uncertainty in the crypto market will remain

25.05.2022 Off By Joe Pick

Weak on-chain metrics and the predominance of concerns in the derivatives market are hindering the recovery of bitcoin after a wave of price declines since the end of March. Coincapturewallet analysts came to such conclusions.

The collapse of LUNA and the general weakening of the market affected the expectations of participants in the crypto derivatives market. In bitcoin, the ratio of open put and call options has increased from 50% to 70%, which indicates an increased desire of investors to secure positions from the continuation of negative dynamics.

In call contracts with execution at the end of July this year, the greatest open interest (OI) is concentrated around the $40,000 mark.

The participants give the greatest preference to putts that will bring profit in the event of a price reduction to $25,000, $20,000 and $15,000. In other words, until the middle of the year, the market is focused on hedging risks and/or speculating on further price reduction.

In Ethereum, the median gas price dropped to 26.2 Gwai after short-term spikes caused by the NFT distribution of the Otherside metaverse and the collapse of Terra. The last time such levels were observed was in May-July 2021 and after March 2020.

Analysts pointed to a decrease in the number of active addresses and the amount of value transferred when interacting with popular DeFi protocols like Aave, Compound and Uniswap.