• Bitcoin’s price has been holding near $28,000 in spite of regulatory pressure and worsening macroeconomic conditions.
• Professional traders have maintained leveraged long positions on margin and in futures markets, indicating strength.
• The risk of a recession in the US is increasing due to higher interest rates and concerns about financial stress on the economy.
Bitcoin Price Remains Resilient Despite Regulatory Pressure
Despite regulatory pressure and worsening macroeconomic conditions, Bitcoin BTC $28,337 demonstrated bullishness, holding near $28,000 for the past week. Furthermore, professional traders have maintained leveraged long positions on margin and in futures markets, indicating strength.
Texas Senate Committee Agrees To Remove Incentives for Miners
On the regulatory front, on April 4, the Texas Senate Committee on Business and Commerce agreed to move forward and remove incentives for miners operating within the state’s regulatory environment. If passed, Senate Bill 1751 would cap compensation for load reductions on Texas’ power grid during emergencies.
Risk of Recession Grows Against Rate Hikes
The risk of a recession in the United States grew after applications for unemployment benefits in the week ending March 25 were revised to 246,000, up 48,000 from the initial report. Furthermore, Kristalina Georgieva, managing director of the International Monetary Fund (IMF), stated on April 6 that the economies of the U.S. and Europe should continue to struggle as higher interest rates weigh on demand.Regarding the banking crisis, Georgieva advised central banks to keep raising interest rates, adding,”Concerns remain about vulnerabilities that may be hidden not just at banks but also non-banks — now is not the time for complacency.” On the other hand St Louis Federal Reserve president James Bullard downplayed concerns about impact of financial stress on economy stating that Fed’s reaction was “swift & appropriate” & monetary policy can continue to put downward pressure inflation.
Analysis Of Derivatives Metrics
Let’s look at derivatives’ metrics to better understand how professional traders are positioned in current market conditions:
Conclusion
Overall Bitcoin’s price has remained resilient despite macroeconomic pressures such as rising interest rates & potential recessionary risks & further BTC rally towards $30K is being favored by derivatives trading activity amongst professional traders