The cryptocurrency market, led by Bitcoin (BTC) and Ether (ETH), has maintained a serene stability as Bitcoin hovers above the $70,000 mark and Ether above $3600. With the Bitcoin halving event looming, options volatility remains high, while perpetual futures funding rates continue to stay inflated.

A Calm Start to the Trading Week

Bitcoin and Ether began the trading week on a relatively flat note, coinciding with the closure of major financial centers worldwide for the long Easter weekend. At present, Bitcoin remains steady at $70,000, while Ether trades near $3600, as per data from CoinDesk Indices. The CoinDesk 20 (CD20), representing the largest and most liquid digital assets, saw a 1.9% increase, reaching 2,750.

Jun-Young Heo, a derivatives trader at Presto Labs in Singapore, observed a relatively subdued movement in BTC and ETH last week, especially compared to the volatility experienced in March. Despite this, the impending Bitcoin halving event, anticipated around April 20, has kept the implied volatility of front-month options elevated, surpassing 75%. He noted that funding rates remain inflated, with major exchanges reporting 6bps to 8bps funding rates for large-cap perpetual futures, and the global open interest for BTC and ETH perpetual futures reaching $35 billion. He predicts a potential return to a more volatile market regime in the near future.

Positive Trends Before the Long Weekend

QCP Capital, in a telegram note, highlighted the rally of Bitcoin prior to the long weekend, attributed to substantial inflows into Bitcoin ETFs. On March 27, inflows reached $243.5 million, followed by an additional $182 million on March 28, as per Coinglass data.

The current stability in the crypto market, amidst anticipation surrounding the Bitcoin halving event and positive inflows into Bitcoin ETFs, indicates a nuanced yet resilient landscape for digital assets. As investors navigate through these dynamics, the industry braces itself for potential shifts in volatility and market sentiment in the coming weeks.