Bitcoin has been on a downward trend for several days now, which places it slightly above $36,000, a far cry from the $66,000 it reached in November 2021.
In clear terms, on April 5 its value opened at $46,614, but since that time, between slight and slight recoveries, the cryptocurrency has retreated to close today at $36,233.
Nervousness among traders
The depreciation of the first cryptocurrency created globally is largely due to the fact that inflation has soared worldwide.
And investors who take refuge in cryptocurrencies have begun to project their fears of a global recession.
Indeed, the first signs of an economic slowdown became apparent when UK retail sales fell by 1.4% in March.
On top of this, Japan’s industrial production fell by 1.7% in the same month.
However, what generated the most uncertainty in the cryptocurrency market was the announcement that U.S. gross domestic product retreated 1.4% during the first quarter of this year.
As a result, bitcoin has been unable to break a downward behavior that accumulates close to a month.
Understanding what lies ahead is complex, as there are a number of factors influencing its performance.
At the mercy of trade
Unlike the perpetual contracts that are present in most financial markets, among cryptocurrency traders the premium of Bitcoin futures contracts, which is also known as basis, is analyzed.
This is why its price can differ greatly from its regular spot exchanges.
Now, the three-month futures contract trades at an annualized premium of 5% or less.
Under this approach, the Bitcoin futures premium has been below that value since April 6, indicating that futures market participants are a bit wary of continuing to buy more of it.
Thus, only more investment will be able to leverage the currency’s stability.
This news is republished from another source. You can check the original article here
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