“With Bitcoin now having turned negative since President Trump’s inauguration, and the overall crypto market cap having round-tripped year-to-date, there is not much technical support from here to the low $90,000, with sentiment likely to stay depressed until further notice,” said Augustine Fan, partner at SignalPlus.
In the options market, traders are increasingly positioning for volatility, with demand rising for neutral strategies such as strangles and straddles, according to Nick Ruck at LVRG Research.
Adding to the market anxiety was the slide in the value of the shares of Bitcoin accumulator Strategy Inc., putting the company’s enterprise value at risk of dropping below the value of its roughly $60 billion Bitcoin holdings. The stock fell about 4% on Friday, and is down more than 30% this year.
