Bitcoin (BTC) and ether (ETH) kicked off the trading week with minimal fluctuations, reflecting a subdued atmosphere in the cryptocurrency market amidst the long Easter weekend. Investors await the highly anticipated BTC halving event, keeping a close watch on price movements.

Bitcoin at $70K and Ether Near $3600

At the time of reporting, Bitcoin maintained stability at $70,000, while ether hovered around $3600, as per CoinDesk Indices data. The CoinDesk 20 (CD20), which tracks the largest digital assets, saw a modest 1.9% increase, trading at 2,750.

Expected Volatility Surrounding Bitcoin Halving

Jun-Young Heo, a derivatives trader at Presto Labs in Singapore, highlighted the relatively calm movement of BTC and ETH compared to previous weeks. However, he emphasized that the implied volatility of front-month options remains elevated above 75% in anticipation of the upcoming Bitcoin halving event around April 20.

Heo also pointed out inflated funding rates, with large-cap perpetual futures in major exchanges recording rates of 6bps to 8bps. Global open interest for BTC and ETH perpetual futures reached a substantial $35 billion, indicating potential for increased market activity.

Potential Return to Volatility

Expectations linger for a potential return to a more volatile market regime, as noted by Heo. The looming Bitcoin halving event and prevailing funding rates suggest that the market may experience heightened fluctuations shortly.

QCP Capital reported positive inflows into BTC ETFs leading up to the long weekend, contributing to Bitcoin’s rally. Data from Coinglass revealed significant inflows of $243.5 million on March 27, followed by an additional $182 million on March 28.

As Bitcoin maintains stability and anticipation mounts for the halving event, investors brace themselves for potential market shifts. With experts predicting increased volatility and continued inflows into Bitcoin ETFs, the cryptocurrency market remains poised for significant developments in the coming weeks.