Bitcoin (BTC) 2022: Traders expect to flip $40,000 back, Todays price Index # 1 Super best amazingly
BTC Price, Bitcoin USD, Bitcioon futures: The Bitcoin (BTC) daily price chart seems to be making a steady recovery pattern, but some concerning indicators are coming from derivatives markets. At the moment, the futures and options markets are showing a lack of confidence from Bitcoin pro traders, but there’s a positive spin to the data.
The road to $40,000 seems uncomfortably predictable, and cryptocurrency traders usually call it “manipulation” when such price movements happen.
Regardless of the rationale behind Bitcoin’s price BTC recovery, investors should analyze derivatives markets to understand how whales, market makers and arbitrage desks are positioned.
While retail traders’ favorite instrument is the perpetual contract (inverse swaps), pro traders often opt for fixed-calendar futures and options. Although they are more complicated to trade, these derivatives offer more complex strategies.
Liquidations are behind us, but so is the route to $69,000
Data shows that there hasn’t been a relevant futures contract liquidation since Jan. 23. When leverage long (buyers) have their positions terminated, it accelerates the price correction, because derivatives exchanges need to sell those futures at market prices.
Notice how the last “big” forced position termination on longs was $290 million on Jan. 23. This partially explains why Bitcoin’s recovery was relatively tranquil over the past week. Still, the market is nowhere near being out of the water, considering that BTC is currently trading 44% below the $69,000 all-time high. BTC
The Bitcoin futures annualized premium should run between 5% to 12% to compensate traders for “locking in” the money for two to three months until the contract expiry. Levels below 5% are extremely bearish, while the numbers above 12% indicate bullishness.
The above chart shows that this metric dipped below 5% on Jan. 21 and hasn’t yet shown signs of confidence from pro traders.
So the big question is: Is the glass half full? For example, if Bitcoin breaks the $42,000 resistance, some traders will likely be caught off guard, so there’s additional buying activity because no one wants to be left behind.
Bitcoin futures markets are neutral, but options traders are skeptical
Currently, it’s a bit difficult to discern a direction in the market, but the 25% delta skew is a telling sign whenever arbitrage desks and market makers overcharge for upside or downside protection.
If traders fear a Bitcoin price crash, the skew indicator will move above 10%. On the other hand, generalized excitement reflects a negative 10% skew.
As displayed above, we’ve been near 10% for almost a week despite the 18% BTC price recovery since the $33,000 bottom. The options skew data shows that pro traders are still pricing higher odds for a market crash.
Despite the not-so-positive indicator from Bitcoin options, these arbitrage desks and market makers will be forced to reverse bearish positions once the price breaks $42,000. However, considering that the futures premium did not show signs of desperation even as the market crashed 52% from the all-time high, the data provides a constructive view.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk. You should conduct your own research when making a decision.
Bitcoin is a digital currency which operates free of any central control or the oversight of banks or governments. Instead it relies on peer-to-peer software and cryptography.
A public ledger records all bitcoin transactions and copies are held on servers around the world. Anyone with a spare computer can set up one of these servers, known as a node. Consensus on who owns which coins is reached cryptographically across these nodes rather than relying on a central source of trust like a bank.
Every transaction is publicly broadcast to the network and shared from node to node. Every ten minutes or so these transactions are collected together by miners into a group called a block and added permanently to the blockchain. This is the definitive account book of bitcoin.
In much the same way you would keep traditional coins in a physical wallet, virtual currencies are held in digital wallets and can be accessed from client software or a range of online and hardware tools.
BTC can currently be subdivided by seven decimal places: a thousandth of a bitcoin is known as a milli and a hundred millionth of a bitcoin is known as a satoshi.
In truth there is no such thing as a bitcoin or a wallet, just agreement among the network about ownership of a coin. A private key is used to prove ownership of funds to the network when making a transaction. A person could simply memorise their private key and need nothing else to retrieve or spend their virtual cash, a concept which is known as a “brain wallet”.
Can bitcoin be converted to cash?
BTC can be exchanged for cash just like any asset. There are numerous cryptocurrency exchanges online where people can do this but transactions can also be carried out in person or over any communications platform, allowing even small businesses to accept bitcoin. There is no official mechanism built into bitcoin to convert to another currency.
Nothing inherently valuable underpins the bitcoin network. But this is true for many of the world’s most stable national currencies since leaving the gold standard, such as the US dollar and UK pound.
What is the purpose of bitcoin?
Bitcoin was created as a way for people to send money over the internet. The digital currency was intended to provide an alternative payment system that would operate free of central control but otherwise be used just like traditional currencies.
Are bitcoins safe?
The cryptography behind bitcoin is based on the SHA-256 algorithm designed by the US National Security Agency. Cracking this is, for all intents and purposes, impossible as there are more possible private keys that would have to be tested (2256) than there are atoms in the universe (estimated to be somewhere between 1078 to 1082).
There have been several high profile cases of bitcoin exchanges being hacked and funds being stolen, but these services invariably stored the digital currency on behalf of customers. What was hacked in these cases was the website and not the bitcoin network.
In theory if an attacker could control more than half of all the bitcoin nodes in existence then they could create a consensus that they owned all bitcoin, and embed that into the blockchain. But as the number of nodes grows this becomes less practical.
A realistic problem is that BTC operates without any central authority. Because of this, anyone making an error with a transaction on their wallet has no recourse. If you accidentally send bitcoins to the wrong person or lose your password there is nobody to turn to.
Of course, the eventual arrival of practical quantum computing could break it all. Much cryptography relies on mathematical calculations that are extremely hard for current computers to do, but quantum computers work very differently and may be able to execute them in a fraction of a second.
What is bitcoin mining?
Mining is the process that maintains the bitcoin network and also how new coins are brought into existence.
All transactions are publicly broadcast on the network and miners bundle large collections of transactions together into blocks by completing a cryptographic calculation that’s extremely hard to generate but very easy to verify. The first miner to solve the next block broadcasts it to the network and if proven correct is added to the blockchain. That miner is then rewarded with an amount of newly created bitcoin.
Inherent in the bitcoin software is a hard limit of 21 million coins. There will never be more than that in existence. The total number of coins will be in circulation by 2140. Roughly every four years the software makes it twice as hard to mine bitcoin by reducing the size of the rewards.
When bitcoin was first launched it was possible to almost instantaneously mine a coin using even a basic computer. Now it requires rooms full of powerful equipment, often high-end graphics cards that are adept at crunching through the calculations, which when combined with a volatile BTC price can sometimes make mining more expensive than it is worth.
Miners also choose which transactions to bundle into a block, so fees of a varying amount are added by the sender as an incentive. Once all coins have been mined, these fees will continue as an incentive for mining to continue. This is needed as it provides the infrastructure of the BTC network.
Who invented bitcoin?
In 2008 the domain name .org was bought and an academic white paper titled BTC : A Peer-to-Peer Electronic Cash System was uploaded. It set out the theory and design of a system for a digital currency free of control from any organisation or government.
The author, going by the name Satoshi Nakamoto, wrote: “The root problem with conventional currencies is all the trust that’s required to make it work. The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust.”
The following year the software described in the paper was finished and released publicly, launching the bitcoin network on 9 January 2009.
Nakamoto continued working on the project with various developers until 2010 when he or she withdrew from the project and left it to its own devices. The real identity of Nakamoto has never been revealed and they have not made any public statement in years.
Now the software is open source, meaning that anyone can view, use or contribute to the code for free. Many companies and organisations work to improve the software, including MIT.
What are the problems with bitcoin?
There have been several criticisms of bitcoin, including that the mining system is enormously energy hungry. The University of Cambridge has an online calculator that tracks energy consumption and at the beginning of 2021 it was estimated to use over 100 terawatt hours annually. For perspective, in 2016 the United Kingdom used 304 terawatt hours in total.
The cryptocurrency has also been linked to criminality, with critics pointing out to it being a perfect way to make black market transactions. In reality, cash has provided this function for centuries, and the public ledger of BTC may actually be a tool for law enforcement.
How does Bitcoin BTC have value?
Bitcoin’s value is inspired by properties such as:
A fixed and predictable monetary supply. Unlike fiat currency (government-backed money), new Bitcoin cannot be created suddenly or by the trillions by any elected or unelected official. There will only ever be 21 million Bitcoin.
BTC operates by open-source code and is globally transparent, unlike fiat currency. At any time, anyone can independently verify the total Bitcoin supply and its underlying code, as well as the balances of each account on the global ledger.
BTC is secured by cutting-edge encryption, and is backed by immense amounts of energy. If an individual or organization were to try to undermine BTC core encryption, it would require impossible amounts of energy, specialized computers, and space. BTC is the most secure computing network in the world.
Unlike traditional bank accounts, anyone, anywhere can connect to the Bitcoin network. Bitcoin is an uncensorable and global network for transacting value.
So long as the above properties are useful to people across the world, BTC will have value.
BTC Bitcoin Todays price
38835.69 USD for Feb 02 2022
BTC Historical Data
|February 02, 2022||38835.69|
|February 01, 2022||38555.53|
|January 31, 2022||37983.15|
|January 30, 2022||38232.18|
|January 29, 2022||37852.58|
|January 28, 2022||37276.84|
|January 27, 2022||36870.44|
|January 26, 2022||36988.93|
|January 25, 2022||36774.01|
|January 24, 2022||36306.41|
|January 23, 2022||35180.44|
|January 22, 2022||36508.80|
|January 21, 2022||40707.68|
|January 20, 2022||41749.55|
|January 19, 2022||42395.46|
|January 18, 2022||42298.34|
|January 17, 2022||43119.79|
|January 16, 2022||43226.65|
|January 15, 2022||43120.85|
|January 14, 2022||42608.41|
|January 13, 2022||43981.88|
|January 12, 2022||42777.21|
|January 11, 2022||41869.86|
|January 10, 2022||41862.36|
|January 09, 2022||41756.66|
|January 08, 2022||41527.20|
|January 07, 2022||43216.46|
|January 06, 2022||43647.15|
|January 05, 2022||45938.02|
|January 04, 2022||46531.14|
|January 03, 2022||47387.21|
|January 02, 2022||47816.08|
|January 01, 2022||46319.65|
|December 31, 2021||47191.87|
|December 30, 2021||46506.99|
|December 29, 2021||47725.15|
|December 28, 2021||50774.07|
|December 27, 2021||50852.86|
|December 26, 2021||50663.49|
|December 25, 2021||50888.72|
|December 24, 2021||50900.62|
|December 23, 2021||48755.90|
|December 22, 2021||49145.22|
|December 21, 2021||47117.01|
|December 20, 2021||46807.05|
|December 19, 2021||46970.06|
|December 18, 2021||46328.70|
|December 17, 2021||47694.53|
|December 16, 2021||48936.86|
|December 15, 2021||48410.56|
Crypto Crash Erases More Than $1 Trillion in Market Value
For Bitcoin BTC, there’s only been one constant recently: decline after decline after decline. And the superlatives have piled up really quickly.
With the Federal Reserve intending to withdraw stimulus from the market, riskier assets the world over have suffered. Bitcoin, the largest digital asset, lost more than 12% Friday and dropped below $36,000 to its lowest level since July. Since its peak in November, it has lost over 45% of its value. Other digital currencies have suffered just as much, if not more, with Ether and meme coins mired in similar drawdowns.
Bitcoin’s decline since that November high has wiped out more than $600 billion in market value, and over $1 trillion has been lost from the aggregate crypto market. While there have been much larger percentage drawdowns for both BTC and the aggregate market, this marks the second-largest ever decline in dollar terms for both, according to Bespoke Investment Group.
“It gives an idea of the scale of value destruction that percentage declines can mask,” wrote Bespoke analysts in a note. “Crypto is, of course, vulnerable to these sorts of selloffs given its naturally higher volatility historically, but given how large market caps have gotten, the volatility is worth thinking about both in raw dollar terms as well as in percentage terms.”
With the Fed’s intentions rocking both cryptocurrencies and stocks, a dominant theme has emerged in the digital-asset space: cryptos have twisted and turned in nearly exactly the same way as equities have.
“Crypto is reacting to the same kind of dynamics that are weighing on risk-assets globally,” said Stephane Ouellette, chief executive and co-founder of institutional crypto-platform FRNT Financial. “Unfortunately for some of the mature projects like BTC, there is so much cross-correlation within the crypto asset class it’s almost a certainty that it falls, at least temporarily in a broader alt-coin valuation contraction.”
Crypto-centric stocks also dropped on Friday, with Coinbase Global Inc. at one point losing nearly 16% and falling to its lowest level since its public debut in the spring of 2021, Bloomberg data show.
MicroStrategy Inc. tumbled 18% while the Securities and Exchange Commission said the company can’t strip out Bitcoin’s wild swings from the unofficial accounting measures it touts to investors. The enterprise software company’s pile of BTC has effectively made its shares a proxy for the digital asset.
Meanwhile, the Biden administration is preparing to release an initial government-wide strategy for digital assets as soon as next month and task federal agencies with assessing the risks and opportunities that they pose, according to people familiar with the matter.
Antoni Trenchev,, Nexo co-founder and managing partner, cites Bitcoin’s correlation to the tech-heavy Nasdaq 100, which right now is near the highest in a decade.
“Bitcoin BTC is being battered by a wave of risk-off sentiment. For further cues, keep an eye on traditional markets,” he said. “Fear and unease among investors is palpable.”
Bitcoin (BTC) 2022: Traders expect to flip $40,000 back, Todays price Index # 1 Super best amazingly