Home
News
- China further plans to restrict crypto mining activities in the country after imposing bans on trading and exchange platforms
- Volatility has increased over the past week as Bitcoin has failed to cross $50k
- Young investors might face hindrance with regulations as digital assets are yet to explore or reach new highs
Three regulators imposed bans on cryptocurrency trading in China. The State Council plans to cut down further its activities related to mining and trading cryptocurrencies. It dealt a severe blow to investors as prices plunged from $41k to $36k within three hours. The slide is expected to continue as panic-stricken investors continue selling their investments. However, market experts believe that the trend might lead to the consolidation of price levels for a significant period.
Volatility and speculative trading hurt investors throughout the week
Cryptocurrency is a pseudonym digital asset that does not have a central authority governing it. Hence, it is a tedious task to predict the path its price might take or levels that it might reach. Subsequently, investors indulge in speculative trading or taking a cue from those who are selling for reasons best known to them.
Speculative trading turns murkier where volatility levels are aiming for the sky, and retail investors stand to lose ground. An expert has opined that historical volatility has now been included in the current price level and the DVOL metric currently stands at 180. BTC continues to trade below its 10-hour moving average, and 50-day moving average as other cryptocurrencies have followed suit.
Options traders in a fix with the dip in prices
Approximately 17000 BTC is pegged against a strike price of $50k, which is pretty far away at the moment. Over a week, Bitcoin has yet to breach the said level that has put option traders in a dilapidated situation. Although the rise in the open interest across exchanges does not indicate directionality, the trend leads to increased volatility.
Ethere trades at $2430 at the time of writing.
It is time for investors to accept a new trading range for Bitcoin i.e., the $40ks where it is expected to consolidate. Altcoins are following in the footsteps of Bitcoin more often than not. Call options are the flavor of the market among traders as they expect prices to increase in the near future.
Regulations to hamper spirits and discourage new entrants
Cryptocurrencies have grabbed eyeballs the world over with unique features like decentralized networks and digital trading at the center of it all. However, with regulations from China and the USA and an informal warning from India, new entrants are second-guessing their decisions. No doubt that it is a risky asset to go all in; it is loved by young investors who have a decent risk appetite. Regulations and restrictions dampen spirits and put brakes on the growth potential of new highs each year.
- China further plans to restrict crypto mining activities in the country after imposing bans on trading and exchange platforms
- Volatility has increased over the past week as Bitcoin has failed to cross $50k
- Young investors might face hindrance with regulations as digital assets are yet to explore or reach new highs
After three regulators imposed bans on cryptocurrency trading in China, the State council plans to cut down its activities related to mining and trading of cryptocurrencies further. It dealt a severe blow to investors as prices plunged from $41k to $36k within a span of three hours. The slide is expected to continue as panic stricken investors continue selling their investments. However, market experts believe that the trend might lead to consolidation of price levels for a significant period of time.
Volatility and speculative trading hurt investors throughout the week
Cryptocurrency is a pseudonym digital asset that does not have a central authority governing it. Hence, it is a tedious task to predict the path its price might take or levels that it might reach. Subsequently investors indulge in speculative trading or taking a cue from those who are selling for reasons best known to them.
Speculative trading turns murkier where volatility levels are aiming for the sky and retail investors stand to lose ground. An expert has opined that historical volatility has now been included in the current price level and the DVOL metric currently stands at 180. BTC continues to trade below its 10-hour moving average and 50-day moving average as other cryptocurrencies have followed suit.
Option traders in a fix with the dip in prices
Approximately, 17000 BTC is pegged against a strike price of $50k which is pretty far away at the moment. It’s been over a week that Bitcoin is yet to breach the said level that has put option traders in a dilapidated situation. Although the rise in open interest across exchanges does not indicate directionality, the trend leads to increased volatility.
It is time for investors to accept a new trading range for Bitcoin i.e. the $40ks where it is expected to consolidate. Altcoins are following in the footsteps of Bitcoin more often than not. Call options are the flavour of the market among traders as they expect prices to increase in the near future.
Regulations to hamper spirits and discourage new entrants
Cryptocurrencies have grabbed eyeballs the world over with unique features like decentralised networks and digital trading at the centre of it all. However, regulations from China and the USA, along with an informal warning from India, new entrants are second guessing their decisions. No doubt that it is a risky asset to go all in; it is loved by young investors who have a decent risk appetite. Regulations and restrictions dampen spirits and put brakes on the growth potential of new highs each year.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
