Bitcoin OTC Desks Are Draining – Supply Squeeze On The Horizon?

Ether's declining appeal as an investment comes from layer-2’s draining value from the main network and a lack of community pushback on excessive token creation, a crypto venture capitalist says.

“The #1 cause of this is greedy Eth L2s siphoning value from the L1 and the social consensus that excess token creation was A-OK,” Castle Island Ventures partner Nic Carter said in a March 28 X post.

Ether “died by its own hand”

“ETH was buried in an avalanche of its own tokens. Died by its own hand,” Carter said. He said this in response to Lekker Capital founder Quinn Thompson’s claim that Ether is “completely dead” as an investment.

Today is a crucial day in the cryptocurrency market, as more than $14 billion worth of Bitcoin and Ethereum options are due to expire. Such a huge expiration may result in significant price changes and trading volumes. Currently, Bitcoin is trading at around $85,000, down by 3% from earlier this week.

Market Reaction To Bitcoin, Ethereum Options Expiry

Based on figures from Greeks.live, the aggregate options expiring today comprises 139,000 Bitcoin options worth about $12.1 billion. Another 301,000 Ethereum options worth about $2.13 billion are also expiring. The put-call ratios of these options stand at 0.49 for Bitcoin and 0.39 for Ethereum, reflecting differing degrees of trader sentiment.

The Andromeda Vote for MultiversX (EGLD) is happening until April 7, 2025, following its testnet deployment. This proposal for a protocol upgrade (v1.9) could impact EGLD’s price as such improvements often drive interest and potential price increases. A favorable vote might boost community confidence and attract new investors looking for positive developments. Conversely, resistance or defeat of the proposal might yield the opposite effect. Traders should watch community sentiment during this period. For detailed information, please visit the source.

STP’s partnership with Allo for launching the Autonomous Worlds Engine on March 29, 2025, is promising due to its potential to enhance AI-driven applications and economic simulations. This collaboration could lead to advancements in tokenized worlds and onchain economies, possibly increasing STPT’s value through innovation. Such strategic partnerships may attract developers and investors intrigued by AI use in blockchain. However, without clear details on implementation success, the price impact might be speculative initially. To explore more about this partnership, see the source.

Bybit is delisting several coins, including BOB Token and DSRUN, which is set to occur on April 4, 2025. Delistings can cause price drops since they reduce accessibility for trading on a major platform. If a token loses significant trading volume, it can suffer decreased liquidity, making price recovery harder. Traders might sell off these tokens quickly to avoid holding an asset with fewer trading options. Thus, staying updated on follow-up announcements for any further trading support is crucial. For more details, check the source.

Amid today’s market correction, Chainlink (LINK) has lost its recent gains, falling back to a crucial support level. An analyst suggests a monthly close above its current range could position the cryptocurrency for a 35% surge.

Chainlink Retest Crucial Price Zone

Chainlink has retraced 9.1% in the past 24 hours to retest the key $14 support zone again. The cryptocurrency surged 15.7% from last Friday’s lows to hit an 18-day high of $16 on Wednesday, momentarily recovering 35% from this month’s low.

However, the recent market correction halted the momentum of most cryptocurrencies, with Bitcoin (BTC) falling back to the $83,700 mark and Ethereum (ETH) dipping to the $1,860 support zone.

Today, LINK dropped from $15 to $14.07, losing all its Wednesday gains. Previously, analyst Ali Martinez noted that the cryptocurrency has been in an ascending parallel channel since July 2023.

Chainlink has hovered between the pattern’s upper and lower boundary for the last year and a half, surging to the channel’s upper trendline every time it retested the lower zone before dropping back.

Amid its recent price performance, the cryptocurrency is retesting the channel’s lower boundary, suggesting a bounce to the upper range could come if it holds its current price levels.

Meanwhile, Rekt Capital highlighted that the token is testing its multi-month symmetrical triangle pattern, which could determine the cryptocurrency’s next move.

As the analyst explained, Chainlink consolidated inside a “Macro Triangular market structure” for most of 2024 before breaking out of the pattern during the November market rally.

During the Q4 2024 breakout, the cryptocurrency hit a two-year high of $30.9 but failed to hold this level in the following weeks. As a result, it has been in a downtrend for the past three months, with LINK’s price falling back into the Macro Triangle.

“The main goal for LINK here is to retest the top of the pattern to secure a successful post-breakout retest,” Rekt Capital detailed, adding, “It’s possible this is a volatile post-breakout retest.”

LINK Needs To Hold This Level

Rekt Capital pointed out that, historically, Chainlink has had downside deviations into this price range: “Back in mid-2021, LINK produced a downside deviation into this price area in the form of multiple Monthly downside wicks.”

Nonetheless, the cryptocurrency is downside deviating “but in the form of actual candle-bodies closes rather than downside wicks” this time.

The analyst also highlighted that, like in 2021, LINK is trading within a historical demand area, at around $13-5 and $15.5, testing this zone as support. Based on this, the cryptocurrency must successfully hold this area to “position itself for upside going forward.”

Moreover, the retest is key for reclaiming the top of its triangular market structure. Breaking and recovering that level would “exact a successful post-breakout retest” and enable the price to target the $19 resistance in the future.

The analyst concluded that if LINK closes the month above the triangle top, it “would position price for a successful retest, despite the downside deviation.”

As of this writing, Chainlink trades at $14.09, a 6.9% drop in the monthly timeframe.