Bitcoin Dips as Profit-Taking Continues; SafePal’s SFP Tokens Surge with New Staking Feature

Bitcoin Experiences a Dip Amid Profit-Taking Trend

Bitcoin (BTC) saw a decline, dropping below the $63,000 mark early Tuesday as the profit-taking momentum from a weekend rally continued into a second day, impacting the wider cryptocurrency market. According to CoinGecko data, BTC fell by 1.4% within 24 hours. Other major cryptocurrencies such as ether (ETH), BNB Chain’s BNB, Cardano’s ADA, and xrp (XRP) experienced declines of up to 2%. Notably, memecoin dogecoin (DOGE) led the decline among major tokens, sliding by 4%. Additionally, Ton Network’s TON faced significant pressure, falling 4% following the arrest of the CEO of its closely associated platform, Telegram, leading to a staggering seven-day loss of more than 20%.

The broad-based CoinDesk 20 (CD20), which serves as a liquid index representing the largest tokens by market capitalization, also saw a decline of 1.5%.

Market Sentiment and Options Trading Insights

QCP Capital, a trading desk based in Singapore, highlighted an uptick in call spread buying, while also observing the selling of bitcoin call options at the $100,000 strike level. This trading strategy reflects a generally bullish sentiment regarding Bitcoin, albeit without the expectation of a sudden surge in the short term.

A call option provides the buyer with the right, but not the obligation, to purchase an asset at a predetermined price, known as the “strike” or “exercise” price, on or before a specified expiration date. Calls are typically viewed as bullish. Conversely, a put option grants the buyer the right to sell the asset at the strike price within the same timeframe. A bull call spread consists of a long call option at a lower strike price and a short call option at a higher strike price, with both options linked to the same underlying asset, in this case, Bitcoin.

QCP noted in a Telegram broadcast, “Despite the increased spot prices, both BTC and ETH implied volatilities are currently more skewed toward puts rather than calls until October.” They remarked on the surprising nature of this sentiment, considering the prevailing bullish outlook, suggesting that the market may have been well-prepared for this movement and quickly capitalized on profit-taking by selling call options.

SafePal’s SFP Tokens Gain Traction with Staking Feature

In another development, the crypto wallet provider SafePal has introduced a new points feature for its SFP tokens, resulting in an impressive price increase of up to 8% over the past week, surpassing gains seen in Bitcoin and other major cryptocurrencies.

The new SFPlus update aims to attract “genuine” token holders who commit to staking their tokens for an extended period rather than simply holding them within their wallet balance. As holders stake their SFP tokens, they begin to accumulate an online score that increases over time, providing opportunities for rewards.

According to CEO and co-founder Veronica Wong in an interview with CoinDesk, “Stakers can access exclusive benefits such as airdrop rewards, discounts on our hardware wallets, and upgraded account tiers in our CeDeFi banking gateway, among other features and partnerships we’ve developed through the SFPlus hub.” She added, “This initiative aligns the interests of loyal $SFP holders more closely with our wallet users and addresses a prevalent industry challenge where project growth does not necessarily benefit token holders in the long term.”

Since the launch of SFPlus just a few days ago, nearly 1.5 million $SFP tokens have been staked across over 100,000 wallets, demonstrating steady growth despite the current market volatility.