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Live markets: Bitcoin could drop to $59,000 in the short-term as liquidity dries up
Key takeaways
- Options markets price a relatively tight move for the next 24 hours.
- Token correlations are rising, meaning assets are moving together rather than on their own fundamentals, while liquidity is thinning into the summer months with no fresh institutional bid visible in ETF flows.
- Wintermute flagged $59,000 as the level to watch, calling it the bear market low and the key support if current pressure continues.
Options markets price a relatively tight move for the next 24 hours. Wintermute's one-day straddle, a measure of expected swing derived from options pricing, put bitcoin in a $61,242 to $63,563 range and ether between $1,606 and $1,694, implying moves of about 1.9% and 2.7% respectively.
The backdrop is deteriorating. Token correlations are rising, meaning assets are moving together rather than on their own fundamentals, while liquidity is thinning into the summer months with no fresh institutional bid visible in ETF flows.
Wintermute flagged $59,000 as the level to watch, calling it the bear market low and the key support if current pressure continues.
Article preview — originally published by CoinDesk. Full story at the source.
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