Bitcoin Holds Steady as ECB Forum Looms, Traders Gear for Volatility Shift
Bitcoin remained stable near $108,000 as traders anticipated significant global macro events, including the European Central Bank’s policy forum and Federal Reserve Chair Jerome Powell's speech. Despite muted price action, derivatives and on-chain market signals indicate potential volatility ahead. Large volumes of Bitcoin are being moved to centralized exchanges, a pattern that often precedes increased volatility. As long as Bitcoin holds above $108,000, upward movement towards $112,000 is expected. Powell is likely to maintain a cautious stance on interest rates due to inflation and labor market uncertainties. Derivatives traders are positioning for volatility, with a notable increase in trading volume for synthetic Ethereum and Bitcoin volatility indices. Bitcoin options show caution, with 20% of open interest in downside puts, while Ethereum markets display bullish sentiment, driven by anticipation of the ETHCC event in Cannes.
