Crypto investors up trading activity amid bitcoin, ethereum volatility
For more on this lets. Welcome in yahoo finance crypto reporter david hollarth, david brian, its its been tough out there for a crypto investor, uh. So bitcoin briefly uh crossed below 30 000 last night. It has recovered since its sort of dangling just below 32 000 uh still at its lowest point since july 2021. Ether also bought them out in a similar period, its trading around two thousand four hundred and twenty dollars per coin. Uh things arent, looking good from the otc desks. Ive spoken with uh theres actually been a flurry of buying demand in the last 24 hours, uh and thats mainly been in bitcoin ether in the stable coins, tether and tara, usd, which is another smaller, stable coin ill get into a little bit. So what ive heard from the desk is that uh theyve had five times the average daily volume volume they typically see. Now. The important thing to remember here is that it doesnt necessarily mean that were seeing sort of a recovery of the market. I mean we could be at this point, but but really what this means is otc desks are sort of sophisticated trading outfits that mainly cater to institutional investors. Not retail traders, so whats going on right now is that a lot of institutions are taking advantage of all this volatility and theyre sort of getting in on one side or the other. The trade that being said, uh theyve sort of reported that theres been um sort of a surging uh down um expectation for downside in may and june open interest in bitcoin and ether puts or or shorts to borrow the uh, cryptocurrencies and sort of sell them at A cheaper amount are uh quite high approaching the highest level year to date or to be sort of uh expire in may and june, so things arent, necessarily looking bright, uh yet and and then also in stable coins.
Uh, as i had mentioned, uh tara ust its a its a smaller subset of stable coins that has sort of risen to prominence because it guarantees a lending yield. Thats much higher magnitude higher than a savings bank account um. It has since uh since the weekend. It has begun to deep peg from its one to one value with the u.s dollar and thats looked like trouble, so terra is a because its used as such a strong, like lending asset, its connected to a lot of derivatives trades. So a lot of market participants, while they havent, really figured it out yet think that a lot of the downside a lot – i say some part of the downside from monday – had to do with taras usdts loss in value and how its impacted. You know these derivatives trades were seeing on both sides, and so david i mean clearly were not hearing or feeling the bahama breeze in your voice this week as compared to a couple weeks back. But if you look forward from here and the prospects for for bitcoin for cryptocurrency, you know where should people be placing a lot of their attention, especially as were keeping track of some of the publicly traded entities that are also either custodians in nature or are holding Bitcoin on their balance sheets, yeah thats, a great question: you know i i im not im not going to offer financial advice and, i definitely wont say uh that um.
You know these stocks are cheap or something like that, because its really hard to tell how far the markets going to go given the dynamics um. But i think the the the overhanging thing for besides the macro economic uncertainty, which is obviously looks poor for the next couple of months for cryptocurrencies, the overhanging thing is regulation and how um, particularly in the us laws, can be passed so that um institutional investors could Potentially get into the asset class when i was in the bahamas, uh, you know sort of the story was there were a lot of uh, very large institutional investors who were there, they were exploring uh sort of you know what the crypto sector has to offer um, But you know in a large part, they cannot um put their money into the asset class. At this point, um outside of you know, venture investments, thats sort of. Why were seeing such high venture investments still, so we really, you know, have to wait on our hands sort of until we see something like more laws being passed, which obviously thats dictated by the congressional uh circus. If you will – and maybe we have to wait for rates to stop going up also and if thats, what were waiting for thats, also going to take a little time, perhaps david holler.