Bitcoin Remains Above $100,000 as Global Tensions Rise

By Omkar Godbole (All times ET unless indicated otherwise) Bitcoin's price, currently at $85,407.97, continues to experience choppy trading near January's highs of around $110,000, with some observers drawing comparisons to 2021 when the bull market ended with twin peaks closer to $70,000. However, not all experts agree with this assessment. According to Jeff Anderson, head of Asia at STS Digital, "The market dynamics between 2021 and today are completely different. Bitcoin is evolving into a treasury asset, making it challenging to apply chart patterns to an asset undergoing significant structural changes." Anderson views the price action over the weekend as "encouraging," noting bitcoin's stability at around $105,000 despite the escalating tensions between Iran and Israel. This resilience suggests that major players are likely taking long positions. QCP Capital, based in Singapore, attributes bitcoin's stable price to continued institutional adoption. "The market appears to have regained its footing, particularly after bitcoin held above the key psychological threshold of $100,000 despite the initial shock," QCP said. "Crucially, Friday's modest 3% pullback was less severe than the 8% decline in April last year, which occurred during similar Iran-Israel turmoil." The market's composure is reflected in Volmex's 30-day implied volatility index (BVIV), which has decreased to an annualized 42.7%, reversing Friday's spike to 46.12%. Meanwhile, the spread between ether and bitcoin implied volatilities continues to widen, indicating that ether options are becoming more expensive relative to bitcoin on Deribit. This presents an opportunity for ether holders to generate additional yield by selling or writing options, according to Anderson. The share price of Hong Kong-listed company Meme Strategy surged over 20% after the company announced the acquisition of 2,440 Solana tokens for approximately HK$2.9 million ($370,000). Corporate adoption of cryptocurrencies is expanding beyond bitcoin to include other coins like ether, sol, and XRP. However, last week, shares in Nasdaq-listed SharpLink dropped sharply after the company disclosed its purchase of ether. The outlook for the broader altcoin market appears less promising due to upcoming large unlocks. According to LondonCryptoClub, "In the next 7 days, tokens with large one-time unlocks (over $5 million) include FTN, ZK, ARB, S, ID, APE, MELANIA, LISTA, and ZKJ. Tokens with large daily linear unlocks (over $1 million per day) include SOL, WLD, TIA, DOGE, TAO, AVAX, SUI, DOT, IP, MORPHO, ETHFI, and JTO." In traditional markets, futures tied to the S&P 500 indicate a steady start to the week with gains, as oil prices stabilize following Friday's surge. Credit markets are pricing in a six-level credit downgrade for the U.S., equivalent to a rating of BBB, just above investment grade. It's essential to stay alert. Key Events to Watch Token Events Conferences The CoinDesk Policy & Regulation conference, a one-day boutique event, will be held in Washington on Sept. 10, bringing together general counsels, compliance officers, and regulatory executives with public officials responsible for crypto legislation and regulatory oversight. Token Talk By Oliver Knight Derivatives Positioning Market Movements Bitcoin Statistics Technical Analysis Crypto Equities ETF Flows Spot BTC ETFs Spot ETH ETFs Source: Farside Investors Overnight Flows Chart of the Day While You Were Sleeping In the Ether