What You Need to Know:

• Bitcoin has bounced above $111,000 after earlier in the European session.
• The current BTC price indicates the smallest decline for August since 2021, while end-of-month options may boost gains before September.
• The CD20 and CD80 indexes reported increases exceeding 3% in the last 24 hours.

Main Image (Bitcoin Market Update)

Even though Bitcoin has risen from early European day lows, it is still up less than 1% in the last 24 hours. As August closes, the largest cryptocurrency appears to be finishing the month negatively for the last three years. Notably, this August has yielded the best returns since 2021, and indications in the options market hint at potential gains preceding end-of-month expirations.

Moreover, Bitcoin options worth over $14.6 billion are set to expire this Friday, with the max pain point at $116,000—this price level might motivate sellers to push Bitcoin higher to minimize losses.

The CoinDesk 20 Index has surged by 3.2% in the last day, and the CoinDesk 80 index, encompassing smaller tokens, increased by 4%. On a long-term perspective, Bitcoin’s 200-day moving average has crossed $100,000, indicating notable strength in its growth trend.

Derivatives Insights

• Open interest in Bitcoin across major derivatives markets is decreasing, aligned with recent price trends. Open interest currently stands at $30.3 billion, just below the all-time high of $32.6 billion.
• Traders are observing upward-sloping implied volatility in Bitcoin options, indicating expectations for greater long-term volatility compared to the short term.
• The significant preference for puts indicates a bearish sentiment among traders, with many seeking downside protection—suggesting a poor outlook for immediate price performance.
• Current funding rates across major venues average around 8%–10% annually, while significant liquidations of approximately $266 million were observed within 24 hours.

Token Market Movements

• Cronos (CRO) has defied bearish market sentiments, rising over 56% after a joint announcement by Crypto.com and Trump Media regarding a $6.4 billion CRO treasury company.
• This new move may extend utility for CRO, transitioning from an exchange-oriented token to a functional asset within Trump Media’s platform.
• Notably, while many crypto-related announcements have failed to correlate directly with price increases, this development has spurred a substantial volume surge in trading.

Stay updated on these developments and market movements for the best trading strategies moving forward.