$BTC THE BITCOIN MOVE IS LOADING BTC is now at $118K Minor liquidity cluster: $117.2Kā$114K Major cluster sits above: $118.7Kā$122.7K Bulls are pushing into supply. The real battle? Just ahead. Hope you are watching the map Breakout might not wait.
Bitcoin looking closely and gone into the sideway market and moving back and forth of the resistance area. Price Action is not clear at the moment, need to wait for the price to develop.
$PYTH Price has broken the resistance area and is now retesting this level. We may see some sideways movement for accumulation before continuing the upward trend.
$BTC Bitcoin is attempting to reclaim the $118,000-$118,500 level, following previous rejections. A rejection from this range will likely push the price down to the $115,000 level. However, if it holds above $118,500, the price could rise towards the $122,000-$123,000 area. $BTC
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When you put your money into riskier options, there is a natural expectation of better returns. That extra bit youāre hoping to earn, compared to a safe investment, is what we call the risk premium. Itās basically the gap between what you hope to earn from a risky investment and what you could earn from a safe one.
For example, in the US, government Treasury bonds are considered safe because the chances of a government default are low. If you decide to buy into something less predictable, you want to get paid more for taking on that risk. The difference in potential returns between the safe bet and the riskier choice is the risk premium.
If a US bond pays 2% interest and a company bond is offering 5%, the risk premium is 3%. The company has to offer you more because thereās a real chance they could miss a payment or even go out of business.
Why the Risk Premium Matters
The main reason investors care about risk premium is because it helps them compare options. Itās not always smart to just go for the highest return; you have to weigh how likely you are to actually get that returnāor lose money.
Risk premium is also important in models that professionals use, like the Capital Asset Pricing Model (CAPM), which helps estimate how much return an investment should ideally give when you consider its risk level.
On top of that, thinking about risk premiums can encourage people to diversify, or spread out, their investments. By having a mix of assets with different risk premiums, you can try to strike a balance between aiming for bigger returns and not exposing yourself to unnecessary risk. #BTCReclaims110K $BTC
The digital asset market has seen significant declines during this liquidity-sensitive drawdown. Bitcoin dropped from $83.5k to $74.5k, losing $150 billion in market cap. Ethereum fared even worse, falling from $1800 to $1380, with a $40 billion market cap reduction.
BEL gave a clean candle close and gave a drop below the 12.8% and reached the Major Support Zone. Now we can expect some strong pullback, in market remains stable.