Bitcoin News :
The worst-case scenario of high inflation and sluggish growth as central banks emphasize consumer-price stability above economic activity and asset-price stability appears to be becoming more realistic.
According to James Pethokoukis, a journalist and economic policy analyst, Goldman Sachs analysts now forecast four further rate rises in 2023, in addition to the seven hikes this year. The investment banking behemoth had already predicted three increases for next year.
However, as seen by blockchain data and derivatives market activity, the bitcoin market is not yet in panic mode.
According to data from blockchain analytics startup Glassnode, the seven-day average of the number of coins held on centralized exchanges is close to multi-year lows observed in the fourth quarter of 2021. That indicates a stronghold sentiment.
When investors aim to sell their holdings, they often shift their coins to exchanges.
Despite the weekend worsening of the crisis, the put-call skews suggest that demand for put options or downside protection has marginally lessened.
The one-week put-call skew was 12 percent at press time, down from 18 percent on Thursday, according to data from the crypto derivatives research firm Skew.
Put-call skews are a measure of the cost of bearish bets against bullish bets.
The crypto community is unconcerned about central banks turning to quicker rate hikes to prevent stagflation. Given that the money markets are showing symptoms of stress in the dollar financing markets, investors may be anticipating dovish comments from major central banks.
According to Bloomberg, the spread between the one-month London Interbank Offered Rate (LIBOR) and the Fed rate for one-month contracts grew the largest since March 2020. The widening of the difference indicates that the dollar, the world’s reserve currency, is losing liquidity.