Ether fell below $3,200 per coin, breaking a new daily low and falling more than 5% on the day. Bitcoin fell below $41,000 per coin, down 4.7% intra-day.
Bitcoin is experiencing one of the heaviest sell-offs since last year
According to Bloomberg, Wall Street digital currency watchers say bitcoin, which is highly sought after by Musk, is facing one of the heaviest selling waves since last year, and the trend is threatening to intensify.
Rich Ross, an analyst at Evercore ISI, said the bitcoin price is destined to fall below its 200-day average, which would send it back down to $40,000. Currently, bitcoin is trading at slightly above $40,000.
Bitcoin has risen 300% since last May, but the recent plunge has shaken faith in the digital currency and cast doubt on whether it can become a truly mature and stable asset.
And other analysts are also bearish on bitcoin. Some in the market believe that Musk’s erratic tweets have sent ordinary investors off the sidelines; others believe that money is flowing from the digital currency into gold, which has been strong of late.
Micheal Purves, CEO of Tallbacken Capital, successfully predicted bitcoin’s decline last month. He says the momentum now makes it clear that bitcoin is turning into a bear market.
Traders are betting on bitcoin falling below $40,000 soon
Bitcoin options traders have been betting that the world’s largest cryptocurrency will fall below $40,000 by next month after Musk’s tweets sparked a storm that caused the price of bitcoin to plummet.
One cryptocurrency exchange chief executive said there was little sign of a “buy-low” mentality among bitcoin traders, and this time investors seemed much more pessimistic than after previous price drops.
Activity in the bitcoin derivatives market surged on Monday, with most of the money flowing into put options, according to data provider Skew. Put options with a strike price of $40,000 traded in high volume, effectively betting that the bitcoin price will fall below that level.
According to bybt.com, there was more than $130 million worth of open interest in the $40,000 puts with an expiration date of June 25 on Tuesday. That suggests that a significant number of options traders are betting that the price of bitcoin will fall sharply by then.
Pankaj Balani, chief executive of crypto derivatives exchange Delta, told Insider, “Yesterday, $40,000 puts traded in high volume.”
He added that investors are reducing the level of call option purchases, indicating that they are pessimistic about the outlook for bitcoin.
“In the previous couple of declines, we saw little change in market sentiment. And this time, we’re seeing a change in sentiment. We’re not seeing any signs of a bottom.”
He said, “The consensus seems to be that bitcoin has fallen pretty sharply and it’s probably going to fall even more. So $35,000 to $38,000 is the range that most traders are looking at.”
The cryptocurrency exchange owner said the trend in the options market suggests that bitcoin will fluctuate between $35,000 and $50,000 through June.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/is-the-bull-market-coming-to-an-end-bitcoin-falls-below-41000-ethereum-below-3200/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.