Breaking Crypto News – Understanding the Significance of Bitcoin Dominance Amidst Mt. Gox
Breaking Crypto News – Generally speaking, Bitcoin is less volatile than other cryptocurrencies, or altcoins, but Monday was an exception. The top cryptocurrency suffered more than lesser-known tokens, which resulted in a sharp decline in market dominance and a gripping depiction of concerns about the implications of upcoming payouts to Mt. Gox attack victims in 2014.
According to charting platform TradingView, the Bitcoin dominance, or its percentage of the entire value of the crypto market, dropped 1.8% to 54.34%, the largest percentage loss in a single day since January 12. To put it another way, investors most likely withdrew their funds from bitcoin sooner than from its competitors. According to CoinDesk data, the price of the cryptocurrency dropped by around 5%, with lows of under $59,000 at one time.
Increase in Demand for Puts
Naturally, there was a reason behind the sell-off. Information that a defunct cryptocurrency exchange intended to give out 140,000 BTC to victims of hacks in July allayed fears that recipients would try to sell as soon as they received their payouts, leading to an oversupply glut in the market. The pressure that has been building since June 7 as a result of miners’ quicker selling and withdrawals from spot ETFs was exacerbated by this.
According to statistics monitored by Amberdata, concerns about sell-offs increased demand for short-term BTC put options on the Deribit exchange. Put options provide a hedge against declines in the value of the underlying asset. The call-put skews for one week and one month, which show the amount traders are ready to pay for an unbalanced payoff over these time periods in either an upward or downward direction, have become negative. That indicates a resurgence in the demand for puts.
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