Spot Volume Fell to Lowest Level of 2021; Derivatives Continue to Gain Market Share with NFTs

The decline in volatility in July with the price of Bitcoin remaining subdued between $35k to $40k, reflected in the on-chain metrics.

Total adjusted on-chain volume, as expected, took a significant drop over 29% to a seven-month low of $405 billion.

Spot volume on centralized exchanges declined sharply, by 31.5% to $1.9 trillion, the lowest levels recorded so far this year, according to a CryptoCompare report.

Here, Binance remains the dominant CEX with a market share of 69.8%, followed by Coinbase’s 8.2%, and Kraken at 3.6%. While FTX’s market share is just 5.4% right now, it has grown from 1.5% at the beginning of the year.

Unlike the centralized crypto trading platforms, where July was the worst month of 2021, in the decentralized finance (DeFi) space, DEXs did slightly better at $72.75 billion in trading volume.

July was the second-worst month after January’s just under $68 billion volume.

Uniswap continues to lead the market with a 67.6% market share, followed by SushiSwap’s 9.4% and Curve’s 7.9%.

Leading the Market

For the first time in three months, aggregate open interest rose from a weekly average of $16.4bn in June to $17.7bn in July, representing a 7.5% increase in line with the rise in crypto prices in the last two weeks of July.

The futures market is leading the cryptocurrency market for some time now. Derivative volumes reached 56.9% of total cryptocurrency volume, the highest percentage share of total volume since November 2020 despite decreasing by 22.6% in July to $2.5tn.

Bitcoin futures and Ether futures volume declined by 29.6% and 22.3%, respectively. But while Bitcoin futures had its worst month in July, Ethereum futures still managed to get in better numbers than March low, since BTC was rallying towards $60k in that month while Ether was still under $2k.

In the options market, which is continuing its growth, Bitcoin’s monthly options volume declined by 25.9% to $10.9 billion, which climbed to nearly $35 billion in May.

Besides trading volumes, the adjusted on-chain volume of stablecoins also decreased by 13% to $387.6 billion, around February-March levels. Meanwhile, the issued supply hit a new all-time high of $110 billion. USDT continues to lose its dominance now at 58.3%, while USDC’s market share has increased to 24%.

The Outlier

Currently, the outlier is the NFT space which is hitting new highs in almost every metric.

NFT marketplace OpenSea, which recently got a $1.5 billion valuation, recorded a 10x growth in volume in less than 30 days, with only about 300 users in January.

Total USD spent on NFT sales has skyrocketed past $286 million, up from $173 million at the May peak. 30-day active market wallets, meanwhile, are looking to break the late March peak and hit 50k.

Top Ethereum NFT collections such as CryptoPunks, Meebits, VeeFriends, and Bored Apes are still on the rise, with their volumes increased collectively by 250%.

Virtual lands are also gaining traction with Decentraland partnering with Coca-Cola, a Sandbox land lot sold for $863,000 while several Axie lands are trading above $500,000.

The renowned interest in NFTs is also pushing transaction fees up on the Ethereum network ahead of the London upgrade this week, which will activate EIP 1559 that will burn base fees and reduce the Ether supply.

Read Original/a>
Author: AnTy

Interest in Cryptocurrencies Are On The Rise, But Volatility Concerns Hold Back Traders: Survey

Interest in Cryptocurrencies Are On The Rise, But Volatility Concerns Hold Back Traders: Survey

Cryptocurrencies have seen wide adoption in the Australian continent, as reflected by a new survey.

Volatility Deterring Widespread Adoption Of Crypto

In a previous survey by The Finder of 1,004 participants in January, about 1 in 4 respondents revealed that they invest in or plan to buy cryptocurrencies.

The number has nearly doubled according to new findings, per reports by The Australian. Of the unknown number of surveyed respondents, about 1 in six Australians (about 17%) said they now own cryptocurrencies. A further 13% said they are interested in cryptocurrencies and would place a stake in the nascent industry as the months go by.

But most of those who participated in the new survey noted that volatility was a huge deterrent. About 43% said that the erratic price swings were a barrier for them to place a stake in virtual currencies. This reflects a 14% increase from the January survey.

Aside from volatility, the knowledge gap of what crypto does comes in at 19%, and limited utility comes in at 18%. Another barrier is that Australians do not know how to buy it, with 22% of respondents stating this fact.

50% of male participants pointed to volatility as a reason they cannot invest in the nascent sector compared to 37% female respondents.

Speaking on the results, Finder personal finance expert Kate Browne said that risk has continued to undermine the adoption of cryptocurrencies. However, she noted that this is a norm for any investment.

Browne noted that the greater involvement of women in the crypto space was a good sign. According to her, this is because more businesses accept BTC payment, and the use of Bitcoin automated teller machines (ATMs) and debit cards was further aiding the growth of the digital asset.

Crypto Is Overvalued

Bitcoin is still the top dog despite volatility with a 9% market share. However, it has lost 4% from the 13% market share it enjoyed in the Jan. survey. Ethereum follows with 8% while parody coin DOGE comes in third 5%. Finally, Bitcoin Cash takes up the rear with 4%. BTC -5.90% Bitcoin / USD BTCUSD $ 35,777.75
-$2,110.89-5.90%
Volume 36.12 b Change -$2,110.89 Open $35,777.75 Circulating 18.74 m Market Cap 670.41 b
2 h NASCAR Driver Becomes the Latest Athlete to Accept Payment in Cryptocurrency In Voyager Sponsorship 3 h Interest in Cryptocurrencies Are On The Rise, But Volatility Concerns Hold Back Traders: Survey 5 h There’s “Significant Desire” for Crypto Among Investor says BBVA as it Launches Bitcoin Trading Service
ETH -5.72% Ethereum / USD ETHUSD $ 2,234.15
-$127.79-5.72%
Volume 22.7 b Change -$127.79 Open $2,234.15 Circulating 116.35 m Market Cap 259.94 b
3 h Interest in Cryptocurrencies Are On The Rise, But Volatility Concerns Hold Back Traders: Survey 7 h Bitcoin, Gold, Stocks, and Yields Take a Beating as Fed’s Bullard Talks of Tapering 10 h Interoperability Project Ren Integrates With Solana, Adds Direct Bridge For Bitcoin
DOGE -4.53% Dogecoin / USD DOGEUSD $ 0.29
-$0.01-4.53%
Volume 1.84 b Change -$0.01 Open $0.29 Circulating 130.08 b Market Cap 38.05 b
3 h Interest in Cryptocurrencies Are On The Rise, But Volatility Concerns Hold Back Traders: Survey 10 h Interoperability Project Ren Integrates With Solana, Adds Direct Bridge For Bitcoin 1 d CoinFlip to ‘Demystify’ Crypto With Actor Neil Patrick Harris who Reveals Himself a Bitcoiner
BCH -5.91% Bitcoin Cash / USD BCHUSD $ 563.24
-$33.29-5.91%
Volume 1.64 b Change -$33.29 Open $563.24 Circulating 18.77 m Market Cap 10.57 b
3 h Interest in Cryptocurrencies Are On The Rise, But Volatility Concerns Hold Back Traders: Survey 10 h Interoperability Project Ren Integrates With Solana, Adds Direct Bridge For Bitcoin 1 d 2.3 Million UK Adults Now Hold Crypto Assets, 10.5% More than Last Year: FCA Report

The survey also noted that one-quarter (about 25%) felt that cryptocurrencies were overvalued. This number has grown 9% higher from the earlier survey. In addition, 32% said they would rather buy shares or place their money in savings than purchase crypto assets.

The crypto market has seen negative price action after concerns about BTC mining protocol were aired by Tesla boss Elon Musk. In addition, following China’s ban of digital assets for payment, the crypto market lost 50% of its value and is still struggling. BTC trades at $35,600 on the 24hr chart.

Read Original/a>
Author: Jimmy Aki

One Reason Why Bitcoin (BTC) May Continue On Its Parabolic Trajectory

Despite the volatility this week, due to Coinbase making its debut on Nasdaq, the Bitcoin price is holding strong above $62,000.

Amidst this, over $623 million worth of BTC stolen in the Bitfinex hack in 2016 moved, representing 10% of the total 119,756 BTC originally stolen. This could have been an attempt to move unseen amidst all the worldwide frenzy around “COIN” listing.

After hitting nearly $65,000 on Wednesday, BTC took a hit to $61,500, which in part could be due to stolen bitcoin moving and in part COIN shares ending up lowering 24%. But the market expects BTC to be back to a new ATH before taking over $70k.

While anything can happen in the market, we are far from topping out based on past performance.

As CoinGecko notes in its latest 2021 Q1 report on the cryptocurrency industry, the ascent of Bitcoin in this cycle (2020- 2022) is mimicking the trajectory it took in the last cycle (2016-2018).

image1

As we recently reported, despite rallying 1,610% from March lows, due to a wave of institutional adoption amid a conducive macro-environment, BTC is only 225% above its 2017 peak of $20,000. By comparison, the 2017 peak was 1,578% above 2013 ATH, and the 2013 peak was 3,590% higher than the 2011 ATH.

Interestingly, unlike last year and the previous cycle, this cycle we see very low volatility despite bitcoin becoming a trillion-dollar crypto asset, making its way to a six-figure price.

One reason why bitcoin might continue its trajectory, according to the report, is inflation. After spending trillions of dollars, another $1.9 trillion bill was passed this week that will again pour more money into the market.

Moreover, with the Federal Reserve determined to keep interest rates low, there is a growing fear of rising inflation, a setup that has made Bitcoin an increasingly viable hedge against the inflationary macro-environment stated Coingecko.

As we have seen, Bitcoin continues to outperform all major asset classes, but while the stock market is doing good, making new ATHs, gold, and bonds (TLT) did not amidst a “rally” in the U.S. Dollar index and rising bond yields.

Bitcoin’s market capitalization is actually just 10X away from flipping gold.

image2

When it comes to the rest of the market, Ether is finally moving up, hitting $2,400 this week. But with rising prices comes congestion and fee spikes, making it not conducive for retail users to do even a simple swap using DEXs. ETH 3.60% Ethereum / USD ETHUSD $ 2,523.06
$90.833.60%
Volume 32.2 b Change $90.83 Open $2,523.06 Circulating 115.48 m Market Cap 291.37 b
3 h European Banking Giant, Société Générale, Issues Security Token On Tezos Blockchain 3 h Gitcoin Spins Out of ConsenSys After Raising Over $11M in a ‘Strategic’ Capital Move 4 h Bitcoin Payment Network, BitPay, Joins Square-Led Crypto Open Patent Alliance (COPA)

With ‘Ethereum-Killers’ racing to offer the cheapest gas fees, this turned out to be good for Binance’s BSC. SOL 6.43% Solana / USD SOLUSD $ 27.85
$1.796.43%
Volume 221.45 m Change $1.79 Open $27.85 Circulating 270.02 m Market Cap 7.52 b
6 h One Reason Why Bitcoin (BTC) May Continue On Its Parabolic Trajectory 1 d Solana’s Data Aggregator Step Finance Raises $2 Million in Private Sale 3 d BNB Flying to Achieve $100 Bln Market Cap Ahead of Coin Burn & Amidst ‘BSC DeFi Summer’
BNB 0.93% Binance Coin / USD BNBUSD $ 544.29
$5.060.93%
Volume 4.59 b Change $5.06 Open $544.29 Circulating 154.53 m Market Cap 84.11 b
6 h One Reason Why Bitcoin (BTC) May Continue On Its Parabolic Trajectory 1 d Ripple Executives File for Lawsuit Dismissal On Back of Last Week’s Victory; XRP Jumps On the News 1 d Binance Is Listing A Tokenized Stock of Coinbase, CZ says ‘Rooting for $COIN’
ADA 1.61% Cardano / USD ADAUSD $ 1.48
$0.021.61%
Volume 5.34 b Change $0.02 Open $1.48 Circulating 31.95 b Market Cap 47.39 b
6 h Cardano Releases Plutus Smart Contract Language in Preparation for Alonzo Hard Fork 6 h One Reason Why Bitcoin (BTC) May Continue On Its Parabolic Trajectory 6 d Revolut Adds 11 New ‘Hot’ Cryptos Including DeFi Tokens for UK and EU Users

“Total TVL is growing, but BSC’s TVL appears to be stealing Ethereum’s thunder – in Q1 2021 alone, BSC’s TVL rose from 3% to 27%. Apr-21 Ethereum is likely losing ground because of rising gas fees which drives away retail users,” noted the report.

Read Original/a>
Author: AnTy

Bitcoin Seeing Strong Bullish Action But ‘Beware the Ides of March’

Any extreme March volatility, however, is temporary when it comes to $1 trillion cryptocurrency’s longer-term uptrend, says Delphi Digital.

The price of Bitcoin is enjoying an uptrend, marking a positive start to the week. Trading above $54,000, BTC price is just 8% away from its all-time high of $58,300.

While the leading digital currency has recovered from the losses, the market isn’t confident yet that it is all over for bears, given that it is March which has been a historically bearish month for Bitcoin’s price.

Also, 100k Bitcoin options are outstanding for the March expiry, which points to continued volatility.

As Delphi Digital says, “Beware the Ides of March,” which refers to Roman, who considered it to be a deadline for settling debts. The research firm notes how March has usually been a volatile time of year for bitcoin, which is no different this time.

Starting 2021 with its best performance since 2013, Bitcoin’s price nearly doubled in value over the first seven weeks of the calendar year. Even after the sell-off at the end of February, the crypto asset recorded its 5th consecutive month of gains.

But the price tends to struggle between mid-February and late March, just as we see a 21% correction over the last week of February, much like all the other times.

“BTC volatility tends to pick up in March, albeit from above-average levels when compared to traditional assets,” noted Delphi Digital.

Beware the Ides of March

Source: Delphi Digital

Bitcoin isn’t alone in this either, we have been seeing Ether struggling, falling under $1,300 during the sell-off, and it was on Monday that it finally went above $1,800 since that day.

However, 30% to 40% drawdowns in the crypto markets are commonplace and “do not change the current long term bull trends.”

“We have no reason to believe that the peak for BTC is behind us this cycle. Bitcoin is still outperforming every major asset class by 40-50 points YTD.”

Despite the heightened volatility, the end-of-year breakout was a strong confirmation of its uptrend. Not to mention, these past few months, Bitcoin has been “transitioning from taboo to accepted amongst institutions. This gives BTC a stronger floor in case of another violent selloff.”

Goldman Sachs Group Inc. revealed recently that it sees substantial demand for digital assets from institutions. In its survey of nearly 300 clients, 40% currently have exposure to crypto.

Besides the investment giants, insurance companies are also pouring in with more and more corporates wanting to add Bitcoin to their balance sheet. As we have been reporting, the Bitcoin fund AUM also continues to surge month over month.

And with the traditional safe haven struggling, gold and precious metal are down over 10% YTD, combined with Bitcoin getting more attention, Delphi Digital says, “we are seeing a greater divergence in fund flows between Bitcoin investment products and the world’s largest gold ETFs.”

As such, any extreme March volatility is transitory compared to the $1 trillion cryptocurrency’s longer-term uptrends, observes the firm.

Read Original/a>
Author: AnTy

Stable Gold May Act As A Hedge Against Crypto Volatility Says Top Gold Miner

Stable Gold May Act As A Hedge Against Crypto Volatility Says Top Gold Miner

The age-old safe haven asset is tangible, and crypto holders should consider having some gold, said Newcrest Mining Ltd. CEO Sandeep Biswas.

With the market capitalization of the overall cryptocurrency market reaching $1.5 trillion, one of the world’s leading gold miners recommends investors to buy the traditional safe-haven asset, gold.

“If you’re into cryptos, you want to consider having some gold,” Newcrest Mining Ltd. Chief Executive Officer Sandeep Biswas told Bloomberg following the Melbourne-based company’s earnings reported on Thursday. The precious metal, according to Biswas, “may act as a bit of a hedge against the volatility of cryptos.”

As we have seen since last year, Bitcoin as a digital gold narrative is gaining traction, which actually resulted in the leading cryptocurrency stealing some of the investment inflows from gold ETF products.

Price-wise, the bullion has been on a downtrend ever since, hitting its ATH around $2,075 in August 2020, while Bitcoin hit yet another ATH on Thursday at $49,000. Compared to Bitcoin’s 62.75% gains YTD, the yellow metal is actually down 3.68%.

This certainly heats up the debate whether the digital currency with a limited supply can erode gold’s appeal over time. According to Biswas, the two assets are distinct, and owning the stable gold would benefit crypto holders.

“Gold is a different class of investment,” Biswas said. “It’s a tangible asset: you can see it, you can touch it, you can feel it, you can mold it, you can make it into jewelry, whatever you want.”

While JPMorgan had said gold might suffer because of Bitcoin’s growing acceptance, Goldman Sachs Group believes both the assets can coexist despite the digital asset capturing some demand from the precious metal.

Read Original/a>
Author: AnTy

Hedging on Fears: New Crypto Volatility Index Let Traders Bet on Market Turbulence

Hedging on Fears: New Crypto Volatility Index Let Traders Bet on Market Turbulence

Over the years, since Crypto investing became more mainstream, we have seen the creation of futures contracts, funds, and now Volatility indices.

The Blockchain-powered Fintech startup company, COTI, has announced the launch of a brand new cryptocurrency index, which allows traders to bet on the likelihood of shorter/longer-term market volatility. At this stage, traders are able to open positions by depositing and using the Tether stablecoin (USDT).

With the popularity of indices like futures, which allow investors to bet against a digital asset’s long-term performance, the introduction of a volatility index shouldn’t be so surprising. The Gibraltar-based company explained that “Users who expect volatility to increase can open a CVI position. If correct, they can take profit by selling their position once the index has risen.” However, if traders correctly anticipate low volatility, they can profit by collecting fees from other traders that opened positions.

In a sense, COTI helps to bring more liquidity to the crypto market.

To avoid overly febrile activity on the platform, CVI liquidity providers will need to deposit and hold USDT for at least 72 hours. Once any position is opened, a CVI trader must keep it open for 6 hours before it can be closed or sold.

For the moment, aspiring traders can link to COTI’s CVI through major wallets such as MetaMask and TrustWallet. COTI intends to add digital assets like Ethereum (ETH) and its native COTI Token in the future.

Read Original/a>
Author: James Fox

Bloodbath: Bitcoin Crashes & Altcoins In Free Fall, Stocks Plunging as USD Gains Strength

Volatility is back in full force. Today, in a violent move down, Bitcoin crashed hard, going as low as $10,500. On Tuesday, the leading digital asset made a failed attempt at $12,000, and today, it dumped hard.

For now, we have found support at $10,700 with ‘real’ trading volume, also jumping to $3 billion. According to analyst PlanB, this correction is “to shake out weak hands that entered May-Aug.”

Altcoins followed bitcoin with Ether breaking the psychological level of $420, briefly falling to $390 but for now, is around $400 level.

However, this is not the time to wallow in the losses but a good opportunity to buy the dips. And this is why “cash should always be a dedicated part of your crypto portfolio” so that one can use that dry powder to buy these dips.

“Larger bull trend still intact… just lots of descending triangles breaching support. Wouldn’t mind a more degenerate washout so I can load up for some bounce plays,” noted one trader.

While majority of the crypto market is suffering losses, with notable mentions including AMPL (37%), BAL (21%), BAND (20%), CRV (19%), KAVA (15%), MLN (14%), REN (13%), OMG (13%), TOMO (13%), KNC (12%), UMA (11%), Matic (10.36%), and VET (10.26%) Justin Sun’s Tron is up 30% and Just 13% among other assets.

Red Everywhere

Bitcoin hasn’t been alone in this, given that “BTC has been highly correlated with FX since late July.”

Today’s move in markets is due to a US dollar comeback to above 93 level, up from Tuesday’s fresh lows at 91.75. The US dollar might be strong today, but it isn’t showing any huge surge.

“Rather than dollar strength, we can probably say that this is a fiat rebound play,” noted analyst Mati Greenspan. As such, not just bitcoin but spot gold also fell but just 1.5% while spot silver dropped 4.4%.

But the stock market went down hard, especially Tesla, which has been dropping for three consecutive days, down 18% since Sept. 1st.

S&P 500 has taken a fall of 3%, tech-heavy Nasdaq, which rallied the most, fell 4.3%, and the Dow Jones Average slid 2.5%. Ryan Detrick, chief market strategist for LPL Financial said,

“Although there is no single driver for the weakness, it seems as if investors all of a sudden realized how overbought stocks are and sold. Someone yelled fire in a crowded theater and everyone left at once.”

But the eerie similarity of this drop with that of 1929, the markets could be in a lot of pain ahead. SentimenTrader tweeted,

“A near-record % of NASDAQ 100 stocks are overbought (RSI > 70). In the past, this ALWAYS led to a stock market pullback over the next 2 weeks. Looking at the past few years more closely, this occurred near the market’s top in January 2018 & January 2020.”

Read Original/a>
Author: AnTy

Bitcoin Again on the Move Amidst “Increasing Market Demand”

Bitcoin is back on the move today. Volatility has been expected as options for 67,700 Bitcoin worth $745 million are expiring today.

Currently, the largest cryptocurrency is trading just under $11,400, up more than 3%, with over $2 billion in trading volume. In the past ten days, BTC has surged 24.5% that has resulted in the number of bitcoin addresses holding 1 million USD spiking by 38% to about 18,000.

Also, a whopping 93% of bitcoin’s supply is at a profit with the price at $11k.

Interestingly, BTC deposits at major exchanges continue to drop, which has been falling since March after the digital asset crashed along with the other asset classes. The deposits have currently reached the low-levels, last seen in May 2019, which suggests users prefer to store their BTC in private wallets. Moreover, it “may lead to a lower selling pressure the upcoming months.”

“Despite BTC’s recent surge to $11k, there are currently no signs of weak hands from long-term investors,” noted Glassnode. “Hodler Net Position Change remains positive since the end of March, with hodlers currently accumulating more than 50k BTC each month.”

However, Ki Young-ju, the CEO of on-chain analysis firm CryptoQuant, said whales have started to send Bitcoin and stablecoins to exchanges. He said,

“BTC whales are sending Bitcoins to exchanges. Stablecoin whales are sending stablecoins to exchanges as well. This week will be a battle between Stablecoin and Bitcoin exchange inflows. These inflows indicate potential buy/sell pressures.”

So Much HODling & Accumulation

Bitcoin gains are recorded amidst the amount of USDT flowing into exchanges spiking to yearly high. All the while, Tether continues to mint millions more USDT that “hints at increasing market demand and could potentially support further Bitcoin price appreciation,” states OKEx.

The exchange’s one-month futures annualized basis has also surged to as high as 27.67%, its highest level since late February. “Values above 20% indicate that traders are paying a very high premium on spots and using high leverage,” OKEx said.

Just this week, Bakkt recorded peak volume twice in a row while CME saw its open interest making new highs. Regarding the slow adoption of its bitcoin options product, CME Group continues to “work with both brokers and platforms to get them connected and up and running to facilitate trades with customers.”

Another bullish development seen in the market is the 1-year HODL wave, which has been unmoved on the blockchain over the last 365 days.

Additionally, this Bitcoin 1-year HODL wave has hit a new all-time high of 63%, up 1% since the start of July.

The fact that an increasing number of bitcoin investors are HODLing with no pressure from any sell-side in the form of deposits to exchanges speaks well for the world’s leading digital currency.

At this point, if bitcoin closes above ~$14,300 on the 12 Monthly charts, that would be one of the most bullish developments in this new cycle, said analyst Rekt Capital.

Read Original/a>
Author: AnTy

Crypto Market is ‘Extremely Greedy’ for the First Time in 2020

Before bitcoin started up-trending last week, its volatility fell below 25%, a level rarely seen in BTC’s history, which had the market expecting a big move. Coin Metrics notes,

“Prolonged periods of low levels of volatility encourage market participants to take on greater position sizes, engage in increased leverage, set tighter stops, and reduce the thresholds upon which they will respond to new information.”

In the crypto market, this phenomenon is even stronger due to the amount of leverage present.

Digital assets started showing signs of life as bitcoin burst over the weekend, breaking through the psychologically important $10,000 level.

The erratic price action of bitcoin, however, resulted in the futures curve steepening aggressively, “encouraging further leverage flow and stablecoin carry trade-related flow.”

During this price action, bitcoin futures on Bakkt registered record trading volume while the open interest on CME hit an all-time high of $724 million.

Similarly, the options market indicates, market participants are turning more bullish, leading to a degree of position scrambling and short positions getting squeezed. Denis Vinokourov of Bequant said,

“The downside to this parabolic rise is the so-called liquidity vacuum and “gaps” in price discovery (…) this temporary liquidity drainage in the small and mid-cap sector creates an opportunity to pick up bargains.”

The real test, according to him would be if bitcoin can hold on to the key $10,500 and $10,000 levels once this rally runs out of steam, with worrying signs of elevated funding rates in perpetual contracts.

All the Bullishness

The gains this week has people turning extremely greedy for the first time in 2020, “showing signs of an exuberant market sentiment.” The last time the Fear & Greed index was at these levels was during the peak of euphoria in July 2019 when BTC hit the yearly high of $13,900.

Interestingly, these gains came amidst a decline in the US dollar and gold, making a new all-time high, which reinforces its safe-haven properties.

In the current world of low minimal interest rates for the foreseeable future on top of inflation expectation, non-yielding assets like bitcoin and gold become increasingly attractive.

However, it is “Unfortunate for BTC longs to see precious metals print a major top at the same time BTC starts being driven by the same factors and price just starts to take off,” said trader and economist Alex Kruger.

Bitcoin and gold’s 30-day correlation is returning to all-time highs, set in March when all risk assets sold off.

The monetary and fiscal response to the coronavirus pandemic has only increased the uncertainty of the future path of inflation and monetary policy, which is supportive of BTC prices. Today, the Fed extended its lending program until the end of the year.

Also, Goldman Sachs analysts said there are “real concerns around the longevity of the US dollar as a reserve currency have started to emerge.”

Other bullish facets this time involve a record percentage of bitcoin supply, 62% amounting to 11.4 million BTC, not moved in at least a year.

Moreover, during this ongoing rally, peer-to-peer volume in many countries has hit an ATH this week. Both Nigeria at $10.3 million and India at $3.8 million made new peaks breaking the ones made just a week before that.

Kenya ($2.5M), South Africa ($2.2M), Ghana ($1.9M), and the Philippines ($1.1M) also made new highs.

Read Original/a>
Author: AnTy

Markets Flip from Bulls to Bears, Even a 40% Drop isn’t Unlikely

After keeping steady for weeks, bitcoin volatility is back.

On June 10th, Bitcoin had a fake breakout only to drop to $9,000 yesterday. The digital asset moved downwards in line with the US stocks that posted losses of at least 5.3%, the biggest one-day losses since mid-March.

The heavy losses came despite the Federal Reserve’s dovish tone while the same day coronavirus cases surpassed 2 million in the US.

Even the traditional safe haven asset gold failed to hold onto its gains. According to trader and economist, Alex Kruger, the correction could be driven by FOMO or the increase in new COVID-19 cases but the fact is “market was experiencing peak euphoria and was due for a pullback.”

“Given the magnitude of the rally, it would shock me if we had a one day sell-off and that’s it,” said Morgan Stanley Investment Management’s Andrew Slimmon.

Today, US stock futures are bouncing and bitcoin is also moving towards $9,500 on a ‘real’ volume of $2.75 billion.

This means, the two markets might take time to decouple from one another. But the good thing is, Bitcoin, the risky asset reacting at all to the Fed, is a clear sign that “either institutional money is playing a much larger role in the market these days, or retail traders are getting more savvy and reacting more to their surroundings,” wrote analyst Mati Greenspan.

“Retraces are short and vicious”

Currently, BTC/USD is trading at $9,465, with a loss of 3.25%. Following the leading digital currency, altcoins crashed even harder.

Despite the correction, the price is not really looking good. Those who feel bitcoin going down to support is unlikely because that would be too big of a drop, “that’s not how Bitcoin works. Retraces are short and vicious. Crashes even more so,” said trader DonAlt.

Even a 40% drop isn’t unlikely “it’s happened before, it’ll happen again,” he said.

During the bull run of 2017, while making its way to the all-time high of $20,000, the flagship cryptocurrency recorded several pullbacks between 36% to 47%.

In the bear market of 2018, bitcoin registered a correction of 45% to 50%. In 2020 itself, we had a 67% drawdown.

“Highest probability long play buy pullback 9370 to 9580-9600. Highest probability shorts 9580- 9700…H1 under both 50 and 200 ema so bears in control on lower time frames. Expect a lot of range and fakeouts before price decides a clear trend one way,” said Trader Arjun.

Read Original/a>
Author: AnTy