Blofin Research, a crypto financial services firm that provides data analytics and asset management solutions, has released its latest report on the state of Bitcoin and the crypto market following the release of US inflation data for March.
According to Blofin Research, Bitcoin and Cryptocurrency Market's Theme In The Next Week Will Be "Stability"
According to the report, US inflation fell to a nearly two-year low in March, but the rise in core CPI will continue to pressure the Fed to raise interest rates again in May.
Fortunately, investors have already priced in further rate hikes and market uncertainty has decreased significantly, according to analysts.
According to Blofin analysts, "stability" may be the theme for the next few weeks for the cryptocurrency market.
Bitcoin is at $30,000, while Ethereum, on the verge of the Shapella upgrade, remains relatively stable, trading at $1900.
The report also analyzes the behavior of block traders, as well as changes in implied volatility (IV) and gamma exposure (GEX) in Bitcoin and Ethereum options.
According to analysts, the rapid decline in IVs was due to the decrease in uncertainty as CPI data did not meet expectations significantly. Compared to BTC IVs, there is a relatively low drop in ETH IVs as Shapella has not expired yet, but investors do not expect an emerging market in the future.
The changes in GEX reflect the different attitudes of investors towards BTC and ETH. According to Blofin Research, traders are bullish on BTC's future gains with a new positive gamma strike of $34,000 after the price surpassed $30,000. Conversely, ETH may face more resistance on its bullish path.
1/7. US inflation fell to its lowest level in nearly 2 yrs in Mar, but a rise in core CPI will continue to pressure the Fed to raise interest rates again in May. Fortunately, investors have already priced in further rate hikes, and market uncertainty has decreased significantly. pic.twitter.com/ZsLnRoAT9w
— Blofin Academy (@Blofin_Academy) April 12, 2023
According to analysts, block traders are more aggressive. Prior to the CPI data release, BTC and ETH options sellers bought large volumes of call options and started selling short positions. While the GEX remains negative on some strike prices, traders still believe that prices will stabilize at current levels.
Block traders are investors who buy or sell large amounts of assets in a single transaction, usually through intermediaries such as banks or brokerage firms.
*Not investment advice.
