Bitcoin’s price surged to an impressive $67,275.58, reaching new heights in the crypto market. However, this rise was short-lived as the price fell by 2% below $67,000 shortly after. The decline can be attributed to the increase in U.S. Treasury yields, which has affected the appeal of riskier assets like cryptocurrencies. Other major cryptocurrencies such as Ether (ETH) and XRP also experienced a decline of more than 3%, while SOL and DOGE saw slight decreases of around 1.65% and 2.35% respectively.
The CoinDesk 20 Index, which provides a comprehensive overview of the crypto market, dropped more than 2% following the decline in prices. Additionally, over $165 million worth of long positions were liquidated in crypto futures tracking major tokens, indicating a leverage flush. This surge in leverage over the weekend often precedes market volatility, signaling potential fluctuations in the near future.
In other news, the acquisition of crypto startup Bridge by Stripe in a $1.1 billion deal has brought attention to the use of stablecoins in public blockchains. Analysts believe that this acquisition validates stablecoins as a leading use case for blockchains, especially in cross-border payments. Companies like Bridge play a crucial role in integrating stablecoin payments into regular business transactions, posing a disruptive challenge to traditional banking systems.
Moreover, the launch of the APE ecosystem and its native token has garnered a positive response from options traders on the crypto derivatives platform PowerTrade. Open interest in APE options surged by over 800% in a single day, reaching 263,000 ($394.5K). Call options and derivatives accounted for over 80% of the total interest, with most activity focused on the Oct. 22 and Oct. 25 expiry contracts. Traders have been buying higher strike calls at prices as high as $2.2, nearly 50% higher than APE’s current market price. Despite APE’s market capitalization of just $1 billion, the activity in options trading has been significant, although still lower compared to BTC and ETH options on Deribit.
As we observe these developments in the crypto market, it is essential to stay informed and cautious of potential market fluctuations and trends. Stay tuned for more updates on the latest moves in the crypto space and how they impact investors and traders alike.