Key Takeaways:
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Bitcoin’s stability after the $ 19 billion flash crash shows long-term demand remains strong despite short-term risk prevention.
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Derivatives entrepreneurs remain careful, with arbitration opportunities and negative funding rates that signal increased risk counterpart.
Bitcoin (Btc) reclaimed the $ 114,000 mark less than 48 hours after Friday’s flash crash, filing $ 15 billion from BTC Futures open interest. While Bitcoin has shown stability after a major liquidity event, many factors can still delay a retest of $ 125,000 level.
As long as investors continue to view Bitcoin as a risk of owning and maintaining its partial relationship with tech stocks, the sustainable bullish momentum is likely to depend on stronger confidence in global economic growth.
Data on the US job market and US-China relationships negatively impact bitcoin price
Concerns about a potential economic slowdown, especially after new signs of weakness in the US labor market, investors have become more dangerous. Carlyle estimated that US employers added 17,000 jobs in September, from a soft 22,000 in August, According to In the Wall Street Journal.
Demand for US bonds has moved forward, pushing yields close to 3.5% as investors accept lower return in exchange for the safety of government -supported assets. This step is further driven by growing concerns that the trade war between the United States and China may intensify on November 10, if the temporary truce limiting US import tariffs is set to expire.
The president of the United States Donald Trump wrote in society reality on Sunday that an extension “should work” while both countries are pursuing economic growth. However, no concrete development has been announced beyond plans for communication between the two leaders.
US Secretary of Treasury Scott Bestent described rare China land export controls as “provocative.” Under new Chinese regulations, foreign companies that manufacture certain materials will now need an additional export license, even if Chinese companies are not directly involved. China continues to lead these markets, which is critical of the production of tech, According to to Reuters.
Further macroeconomic uncertainty arises from the US government’s continued closure, delaying the release of key data, including a consumer inflation report and wholesale costs. The lack of visibility was complicated by the US Federal Reserve and made investors more risky-averse leading the Fed Chair Jerome Powell’s speech on Tuesday.
Watering gaps in BTC derivatives and regulatory security risk
Regardless of prospects for improving US-China relationships, traders remain very careful Bitcoin’s derivatives. Some markets still show arbitration opportunities, such as differences between eternal contracts and place prices in the same exchange. Limited activity from market manufacturers signals that risk the risk of counterparts.
The bitcoin Perpetual Futures Funding Rate In Binance remains negative, meaning shorts (bearish position) to pay for action. Meanwhile, the indicator returns to a normal positive range of other exchanges, creating potential arbitration opportunities at rates.
Joe McCann, founder and CEO of the Asymmetric Financial, told X that “a massive market manufacturer” should be eliminated in Friday’s crash, which will explain sharp price gaps in exchanges and the “crazy dislocations” in Binance. Although these assumptions prove to be short -lived, traders are likely to wait longer before re -entering the cryptocurrency market.
Related: Centralized exchanges faced with claims of massive undercounts
Other market participants are strictly criticizing how exchanging exchanging exchanging pricing and pricing derivatives. Crypto.com CEO Kris Marszalek urged regulators To “conduct a thorough analysis of the fairness of skills,” pointing to the downtime that only affects some users and the absence of steps in compliance with “internal trade.”
The unique features of Bitcoin, which allow the potential to benefit from increasing demand for independent deficiencies of properties, are not affected by Friday’s flash crash. However, the short -term risk of the entrepreneur is clearly reduced, which can delay the journey to a new full time high by several weeks or months.
This article is for general information purposes and is not intended to be and should not be done as legal or investment advice. The views, attitudes, and opinions expressed here are unique and do not necessarily reflect or represent the views and opinions of the cointelegraph.
