Bitcoin surged above $70,000, while Ether reached over $3600 on Monday, maintaining its momentum despite a relatively flat start to the trading week. The ongoing Bitcoin halving event is driving volatility in options markets, with perpetual futures funding rates remaining high.
As per CoinDesk Indices, Bitcoin remained stable at $70,000, with Ether hovering around $3600. The CoinDesk 20 (CD20) indicated a 1.9% increase, trading at 2,750.
Jun-Young Heo, a derivatives trader at Presto Labs in Singapore, highlighted the subdued movement of BTC and ETH last week, with weekly realized volatility dipping below 50%. However, the impending Bitcoin halving event around April 20 is keeping implied volatility of front-month options elevated above 75%. He also noted inflated funding rates, with most large-cap perpetual futures on major exchanges recording rates of 6bps to 8bps. Global open interest for BTC and ETH perpetual futures reached $35 billion, suggesting potential return to a more volatile market regime.
QCP Capital noted positive inflows into Bitcoin ETFs amounting to $243.5 million on March 27, with Coinglass data indicating continued inflow of $182 million on March 28, contributing to Bitcoin’s rally ahead of the long weekend.
