Feb 21, 2023
Bitcoin Surges 15% Despite Regulatory Pressure Wave
The crypto market has been experiencing strong bullish momentum over the past 40 days, with Bitcoin (BTC) trading above $18,000 despite a steady flow of negative news. Regulatory pressure has been mounting in the space, with the New York State Department of Financial Services ordering Paxos to “cease minting” the Paxos-issued Binance USD (BUSD) dollar-pegged stablecoin and the United States Securities and Exchange Commission announcing a $1.4-million settlement with former NBA player Paul Pierce for allegedly promoting “false and misleading statements” regarding EthereumMax (EMAX) tokens on social media. Despite this, investors remain confident due to weak economic data signaling that the U.S. Federal Reserve has less room to keep raising interest rates.
To better understand how professional traders are positioned in the current market conditions, let’s take a look at Bitcoin derivatives metrics. The USD Coin (USDC) premium is an indicator that measures the demand for cryptocurrency in Asia. It measures the difference between China-based peer-to-peer stablecoin trades and the U.S. dollar. If the indicator is above fair value at 104%, it indicates excessive cryptocurrency buying demand. The USDC premium currently stands at 2.7%, which is flat versus the previous week on Feb. 13, indicating modest demand for stablecoin buying in Asia.
The two-month futures annualized premium is another indicator that traders should be aware of. This index should trade between +4% and +8% in healthy markets to cover costs and associated risks. The Bitcoin futures premium broke above the 4% neutral threshold on Feb. 16, which represents a return to a neutral-to-bullish sentiment that prevailed until early February. This shows that pro traders are becoming more comfortable with Bitcoin trading above $24,000.
The correlation with the S&P 500 50-day futures remains high at 83%, indicating that macroeconomic factors are driving the overall trend. Both retail and pro traders are showing signs of confidence, according to the stablecoin premium and BTC futures metrics. The absence of a price correction typically marks bull markets, despite the presence of bearish events, especially regulatory ones.
The current bullish momentum in the crypto market has opened up numerous opportunities for companies to leverage NFTs for promotion and marketing. NFTs, or Non-Fungible Tokens, are digital assets that are used to represent ownership of digital items, such as art, music, and gaming items. NFTs are becoming increasingly popular as a means of monetizing digital assets and are being used by businesses to promote their products and services.
For companies looking to take advantage of this trend, there are a number of NFT marketing agencies that offer services such as creating and selling NFTs, promoting NFTs on social media platforms such as Twitter, and developing strategies for NFT marketing. These agencies also help companies to identify potential buyers and create campaigns to drive sales. Additionally, they can provide guidance on how to use NFTs to engage customers and build brand loyalty.
The current bullish trend in the crypto market is a positive sign for companies looking to leverage NFTs for promotion and marketing. With the help of a web3 agency, businesses can create and sell NFTs, promote them on social media, and develop strategies for NFT marketing to drive sales and engage customers. As the crypto market continues to grow, NFTs will become increasingly popular as a means of monetizing digital assets, and companies should take advantage of this trend to drive growth and build loyalty.Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.