The recent drop of Bitcoin to $26,000 pulls back the curtain on the inner workings of the present crypto market structure. Analyst Marcel Pechman shows that the Bitcoin derivatives market bears no signs of professional traders flipping bearish. While it offers no promise of swift restoration to the $29,000 support line, this observation does lessen the likelihood of a lengthy correction period.
Digging further into the data, trade liquidity and volatility for Bitcoin have both seen a significant drop since the collapse of the FTX in November 2022. This begs the question: Did the 11.4% Bitcoin price drop in mid-August, the largest futures liquidation since November 2022, exacerbate market conditions?
Drawing an insightful comparison, macroeconomic analyst Lyn Alden voices skepticism for the proposition of a common currency among the BRICS nations (Brazil, Russia, India, China, and South Africa). However, Alden forecasts a potential slump in the strength of the United States dollar if these countries opt for their own foreign trade currencies. This unconventional perspective prompts crypto enthusiasts to rethink their investment strategies.
Post-crash, Bitcoin futures premiums sit at a neutral 6%, indicating healthy demand equilibrium between leveraged longs and shorts. This agreeing with the Bitcoin options skew ranging neutrally from -7% to 7%, implying sensible downsides protection costs.
Alluringly, turning attention to a contrasting facet of the crypto world, musician and founder of The Homies DAO (Decentralized Autonomous Organization), Iman Europe, introduces her Web3-based project. This model promises to create a safe haven for artists in the music industry to socialize, relax, and more importantly, focus on personal well-being. Their first activity, the Homies Hangout, will feature different wellness centers like physical fitness, spiritual wellness, and group therapy to encourage conversations on mental health. Looking ahead, Europe plans to expand this platform to include educational content and help bring more people to the chain and even abroad for retreats.
While the DAO also has its nonfungible token (NFT) collection, Europe is keen to limit the members to a count of 500 to build a close-knit community rather than just another project fueled by speculation and blue-chip collaborations. In a nutshell, these events underscore the advantages and potential disruptions in the crypto world, encouraging us to ask—Is crypto the wherewithal to leverage for profit, or is it a means to foster supportive spaces for communities?
Source: Cointelegraph
