Zcash Sees Growth Amidst Rising Market Anxiety: Crypto Daybook Americas

By Omkar Godbole (All times ET unless indicated otherwise) The cryptocurrency market remains on edge following bitcoin's rapid reversal from its early Tuesday spike to $114,000, with most alternative coins mirroring this pattern. Despite this, the CoinDesk 20 Index has seen little change over the past 24 hours, even as gold's rally has stalled, sparking hopes of a potential shift into digital assets. The recent price fluctuations have resulted in the liquidation of $600 million worth of crypto futures bets, representing a three-sigma liquidation event according to CryptoQuant. This extreme outlier indicates heightened market volatility. Meanwhile, the ratio of open interest in bitcoin options to futures open interest has reached its highest level since late 2023, often a sign of increased price swings on the horizon. Additionally, bitcoin's 30-day implied volatility indices, BVIV and DVOL, remain elevated, sustaining the gains seen after the October 10 crash and underscoring the ongoing uncertainty in the market. "Such market fluctuations do not help improve the mood of crypto investors," said Alex Kuptsikevich, FxPro's chief market analyst, in an email. The current nervousness in the market, reflected in the Crypto Fear & Greed index's drop to 25, could present a buying opportunity. "At current levels, the strategy of 'buying when everyone is afraid' may be effective, or we might see a more intense sell-off following three months of stagnation," Kuptsikevich added. In other news, Japan's newly elected Prime Minister, Sanae Takaichi, is reportedly preparing an economic stimulus package exceeding $92 billion to help households combat inflation. This move is seen by observers, including Arthur Hayes, CIO of Maelstrom Fund, as potentially contributing to bitcoin's upward trend. In industry news, the Wall Street Journal reported that crypto trading firm FalconX is acquiring ETF manager 21Shares, with plans to develop funds focused on derivatives and structured products. A Bloomberg report noted that some of Asia's largest stock exchanges are becoming increasingly wary of digital asset treasury firms. In traditional markets, the dollar index maintained its weekly gains, while gold fell for the second consecutive day, approaching the $4,000 per ounce mark. Remain vigilant for further developments. Key Events to Watch For a comprehensive list of this week's events, refer to CoinDesk's "Crypto Week Ahead". Upcoming Token Events For a comprehensive list of this week's events, refer to CoinDesk's "Crypto Week Ahead". Conferences and Meetings For a comprehensive list of this week's events, refer to CoinDesk's "Crypto Week Ahead". Token Talk By Oliver Knight Derivatives Positioning Market Trends Bitcoin Statistics Technical Analysis Crypto Equities Crypto Treasury Companies ETF Flows Spot BTC ETFs Spot ETH ETFs Source: Farside Investors While You Were Sleeping