- Traders are monitoring the European Central Bank Forum and a panel with Jerome Powell and Christine Lagarde for signals on monetary policy changes.
- Analyst Axel Adler Jr. reports that large Bitcoin holders are moving coins onto exchanges, which could signal rising volatility.
- Bitcoin’s exchange reserves are decreasing, and inflows of stablecoins are slowing, which may precede increased price swings.
- Bitcoin derivatives traders show a defensive stance, while Ethereum traders are more optimistic ahead of the ETHCC event.
- On-chain and derivatives indicators suggest that Bitcoin may see renewed volatility, especially with global economic uncertainty.
Bitcoin held steady near $108,000 over the weekend, as traders shifted attention to this week’s European Central Bank Forum in Sintra, featuring key speakers like Federal Reserve Chair Jerome Powell and ECB President Christine Lagarde. Market participants are looking for any statements that could indicate upcoming changes in global monetary policy.
According to independent analyst Axel Adler Jr., large Bitcoin holders, known as “whales,” are moving significant amounts of Bitcoin onto centralized exchanges. Adler said this trend, paired with dropping exchange reserves and reduced stablecoin deposits, often indicates that a period of higher volatility may follow. “As long as Bitcoin holds $108,000, the base scenario is upward movement with targets at $112,000,” Adler wrote in his newsletter.
Powell is expected to repeat the Federal Reserve’s careful approach toward interest rates, emphasizing a wait-and-see policy on inflation and employment figures before easing moves. The ECB Forum, themed “Adapting to change,” will host Powell, Lagarde, and other central bankers, who are likely to discuss evolving economic conditions during uncertain times.
Recent activity in derivatives markets shows that traders are preparing for increased volatility. On Saturday, Volmex Finance founder Cole Kennelly highlighted that $806,000 in trading had taken place in synthetic volatility indexes for Ethereum and Bitcoin on gTrade, suggesting heightened demand for products tied to price fluctuations.
Options activity also reflects caution among Bitcoin traders, with Nick Forster of Derive.xyz noting that about 20% of open interest is concentrated around downside “put” options at strike prices of $85,000, $100,000, and $106,000. “Bitcoin traders are bracing for macro uncertainty or post-rally profit-taking,” Forster told Decrypt. In options trading, “puts” allow traders to protect against falling prices.
By contrast, Ethereum traders are positioning for gains, with increased activity in upside “call” options at $2,900 and $3,200 ahead of the ETHCC conference. Forster explained that this may be driven by expectations of major announcements typically made at the event.
The broader market remains alert to central bank decisions and macroeconomic events, indicating that volatility could return to both crypto and traditional financial markets in the days ahead.
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