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- 1 The BTC price has gone through a week filled with red candles and is currently near $41,000
- 2 BTC has seen a decline of 21% in open interest as reported by Fxstreet
Earlier this month, Bitcoin celebrated its 15th anniversary, but during its initial stages, it didn’t gain much recognition despite now trading at over $41,500 per unit on international crypto exchanges. However, big investment banks’ leaders are still not much interested in Bitcoin.
Bitcoin Price at $41k After a Bearish Week
Currently, the Bitcoin price is trading defensively above $41,000 after a weeklong decline, and whales on a leading crypto exchange have closed their leveraged positions, which has led to a significant increase in USDT reserve. This strategic move by Whales led to a 21% decline in open interest on Bitfinex, signaling that the BTC price could extend losses.
Bitcoin (BTC) is struggling to keep its head above volatile waters on Monday morning, trading at $41,000, after its value fell last week. The decline in open interest by large-wallet investors (popularly known as whales), coupled with an increase in their Tether (USDT) reserves on Bitfinex, suggests that the downward trend for BTC price could extend in the short term.
Open Interest Declined in BTC
Grayscale’s Bitcoin sale is unlikely to have driven the BTC price lower, and profit-taking is likely to be the driver. Crypto market participants track the moves of large wallet addresses on derivatives exchanges like Bitfinex since this helps determine the direction of BTC price, in the short term. According to FXStreet, whales on Bitfinex have closed their leverage positions, and open interest in BTC has declined by nearly 21%.
Decline in NFT deals, Bitcoin surpassed by Ethereum
Between January 13th and January 20th, 2024, there was a noticeable decline in NFT deals week by week. Ethereum surpassed Bitcoin, Solana, and Torrential slide with record gains, while Solana experienced a 35.07% increase in deals, amounting to $59 million during the last week.
Conversely, Polygon had a significant decline, with deals totaling $25.33 million, representing a 43.02% decrease from the previous week. Among the top five blockchains for NFT deals, Torrential slide had a 22.13% increase, resulting in a volume of $14.24 million.
This week’s leading NFT collection was Solana’s Cryptoundeads, achieving $15.9 million in sales. Bitcoin’s NFT sales totaled $13.32 million, a 41.53% decrease. Only Bored Ape Yacht Club and Cryptopunks made it to the top ten.
The highest-priced NFT sold this past week was “Lif3 V3 Positions NFT #9,” commanding a price of $698K. Polygon’s “Lif3 V3 Positions NFT #15” followed closely, selling for $245K. In third place was Solana’s “Boogle #047,” which fetched $219K three days ago. Additionally, notable sales were observed on the BNB, Bitcoin, and Flow blockchain networks, with high-priced sales ranging from $40K to $73K.
Conclusion
Bitcoin price is trading above $41,000, but whales on Bitfinex have closed their leveraged positions, leading to a decline in open interest and suggesting possible further losses. Grayscale’s Bitcoin sale is unlikely to have affected the price. Ethereum-led NFT deals with record gains surpassing Bitcoin.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos or related indexes comes with a risk of financial loss
Amanda Shinoy is one of the few women in the space invested knee-deep in crypto. An advocate for increasing the presence of women in crypto, she is known for her accurate technical analysis and price prediction of cryptocurrencies. Readers are often waiting for her opinion about the next rally. She is a finance expert with an MBA in finance. Quitting a corporate job at a leading financial institution, she now engages herself full-time into financial education for the general public.
