Bitcoin fell below $63,000, marking a 1.4% drop in 24 hours, influenced by profit-taking after a recent rally.QCP Capital noted options-market activity that suggests a generally bullish mood, but not an explosive move higher in the short term.SafePal’s SFPlus release boosted its SFP token value by up to 8% over the past week by adding rewards to encourage staking.
As a seasoned researcher with over a decade of experience in the volatile world of cryptocurrencies, I’ve seen more than my fair share of market fluctuations. The recent dip in Bitcoin to below $63,000 is not entirely surprising given the profit-taking trend after a significant rally. However, it’s important to note that the options market activity suggests a generally bullish mood, albeit not an explosive move higher in the short term.On Tuesday morning, Bitcoin (BTC) dipped below $63,000 due to continued profit-taking following a bullish weekend rally that also impacted the overall cryptocurrency market.
In the last 24 hours, Bitcoin dropped approximately 1.4%, according to CoinGecko data, and other significant cryptocurrencies like Ether (ETH), Binance Coin’s BNB, Cardano‘s ADA, and Ripple‘s XRP saw declines of up to 2%. The memecoin Dogecoin (DOGE) experienced a steeper fall, decreasing by 4%, while Ton Network’s TON, which has been affected by the arrest of its CEO linked to Telegram, dropped by 4% as well, resulting in over 20% losses over the past week.
The broad-based CoinDesk 20 (CD20), a liquid index of the largest tokens by market capitalization, fell 1.5%.
QCP Capital, a trading desk based in Singapore, observed a rise in the purchase of call spreads, while simultaneously observing the sale of bitcoin calls at the $100,000 level. This strategy indicates a predominantly optimistic sentiment, but not an imminent significant surge in the near future.
A call option gives the buyer the right, but not the obligation, to purchase an asset at a specific price, called the “strike” or “exercise” price, on or before a specific date, called the “expiration.” Calls are implicitly bullish. A put option gives the buyer the right to sell an asset at the strike price on or before the expiration date. A bull call spread consists of one long call with a lower strike price and one short call with a higher strike price. Both calls have the same underlying asset, such as bitcoin, in this case.
Despite higher prices, options for Bitcoin (BTC) and Ethereum (ETH) are currently leaning more towards puts (betting on a price decrease) rather than calls (betting on a price increase) until October, according to QCP. This is unexpected considering the widespread bullish sentiment, suggesting that the market was prepared for this move and swiftly profited by selling call options.
In the last seven days, the price of SafePal’s SFP tokens has risen by as much as 8%, climbing higher than increases experienced by Bitcoin and other prominent cryptocurrencies due to the introduction of a fresh points system for their crypto wallet.
Instead of just keeping your SFPlus tokens in your digital wallet, the SFPlus upgrade encourages long-term token holders to “actively” stake their tokens. By doing so, these holders gradually build an online reputation or score that increases with the duration of the staking period. This earned score can then be exchanged for various rewards.
As an analyst, I’d rephrase it like this: “In an interview with CoinDesk, our CEO and co-founder, Veronica Wong, shared that by being a Staker with us, you can enjoy perks such as exclusive airdrop rewards, discounts on hardware wallets, and advanced account tiers within our CeDeFi banking gateway. These, along with other features and benefits we’ve built through our partnerships, are easily accessible via the SFPlus hub.”
She noted that this action brings the aspirations of devoted SFP owners more in line with our wallet users, and it’s a step towards resolving an ongoing challenge in the industry: while a project may expand, its token holders often don’t reap the benefits, particularly over the long haul.
In just a short span since the debut of SFPlus, an impressive number nearly 1.5 million dollars worth of $SFP tokens have been staked across more than 100,000 wallets. This growth shows no signs of slowing down even amidst the unpredictable market climate.