Bitcoin (BTC) extended its losses on Tuesday, with K33 Research’s weekly report highlighting a decline in BTC CME premiums and yields. The ongoing lack of momentum in Bitcoin’s price movement coincides with a broader market softening. Meanwhile, business intelligence firm Strategy (formerly MicroStrategy) announced plans to issue $2 billion worth of senior convertible notes, which it will partially use to acquire more Bitcoin.
Market Analysis: Low Volatility and Bearish Signals
Bitcoin has entered a phase of low volatility, with trading volumes, yields, and market fluctuations dropping to their lowest levels in months, according to K33 Research. The report noted that metrics across Bitcoin’s market are weakening, and that 30-day volatility has decreased significantly.
Notably, Bitcoin’s CME futures premium fell below 5%, signaling potential bearish sentiment. This drop is unusual, as such low premiums have been observed for just 65 days since January 2023. Historically, periods of low CME premiums have often led to weaker performance, influenced by the 2022 bear market. Additionally, Bitcoin futures yields recently dropped to their lowest point since September.
Despite this, Strategy remains bullish on Bitcoin and plans to raise $2 billion through 0% senior convertible notes. The firm intends to use the proceeds to purchase more Bitcoin and to support general working capital. Currently, Strategy holds 478,740 BTC and aims to continue acquiring Bitcoin with a target of $42 billion in purchases over three years.
Price Action: Bitcoin Tests Support
Bitcoin briefly dipped to $93,000, marking its lowest price since early January, before recovering to $95,000 in the past 24 hours. Traders and investors are monitoring Bitcoin closely as the market shows mixed signals of weak performance and strategic buying activity from large institutions like Strategy.
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