Bitcoin: high volumes and volatility


Bitcoin’s day of high voltage yesterday, with high volumes and volatility that saw the daily index on a monthly basis that rose over 2.8%, the highest level since last June.

The rest of the sector has been rather insensitive to the news that yesterday moved the financial markets. Yesterday S&P500, Dow Jones, Nasdaq Composite recorded absolute historical highs and then experienced a downturn.

The same downturn has expressed itself in a clear way on the gold that has accused a decrease of 4%.

All this after the announcement of Pfizer that has moved the markets because it discounted a possible rethink of a further injection of liquidity by the Fed.

The cryptocurrency sector and the altcoins were little affected by the announcement and were not affected by the Bitcoin reflexes.

The day shows a prevalence of positive signs, more than 70% above parity. Good balance on a weekly basis of the first 20, where only Monero (XMR) loses -1% together with Crypto.com (CRO) with a balance of -10% are below parity.

Several double-digit gains. Bitcoin (BTC) earns 15%, does better Ethereum (ETH) up 20% and Chainlink (LINK) flies 25%.

EOS is also among the best weekly increases with a jump of just under 10%, in line with the rest of the industry. Today, however, it drops by 1%.

The market cap continues to increase and for the first time since May 2018 it rises above 440 billion dollars. This is due to the Bitcoin, which has been reported as total capitalization above 280 billion dollars, the highest level not recorded since January 2018, full bull run phase that coincided with the bubble highs in late 2017 – early 2018.

The dominance of Bitcoin is confirmed around 65%, which is the highest level of market share since last June. As for Ethereum and Ripple, Ethereum drops to 11.5%, while Ripple tries to maintain 2.5% which is the lowest level since 2017.
Bitcoin volumes explode on commercials and derivatives

Volumes on a daily basis also continue to rise above $155 billion.

Bitcoin sees for the second time in a few days exceed 4 billion dollars on major exchanges, a condition that has not occurred since last May.

Also Ethereum for the sixth consecutive day exchanges 1.5 billion in dollars. Unlike Bitcoin, Ethereum was not particularly moved and such an intense series of exchanges did not mark it since the beginning of last September.

Also the volumes on derivatives mark new highs. The aggregate volume of Bitcoin futures after last Thursday’s record sees open interest at maximum levels at 5.5 billion, lower than last week’s record at 5.7 billion.

Yesterday’s rises made the volumes of put and call option hedges sold explode. This exalts the intentions of a possible increase in speculation in the coming days. Much attention will have to be paid to the movements.

Also on Ethereum the volume for the options records new absolute historical highs, with the open interest (options held beyond the trading day).

For Ethereum the put options are more traded, therefore traders expect a continuation of the upward trend.

Trade is also growing again in the DeFi sector, which for the first time is bringing in more than 12.7 billion dollars. The Ethereums fixed in the various protocols of the decentralized finance are growing again, bringing back over 8.5 million ETHs. More than 167,000 tokenized Bitcoins are stable on the Ethereum network.

Among the best rises of the day are the tokens of the DeFi sector: Decentraland (MANA), Ocean Protocol (OCEAN), Yearn Finance (YFI), Aave, Status, gain +15%. On the opposite side the worst drop is by Loopring (LRC), -10%, the only double-digit downhill among the top 100.

The growth of Uniswap continues, one step away from the 3 billion dollars immobilized on the project. Maker follows with 2.17 billion, and WBTC with 1.9 billion.

Bitcoin with yesterday’s rise brings the quotations back to $15,900 and then, as happened last week, make the sales that reject the prices in the day yesterday to a step from $14,800.

The mid-term trend remains firmly upward, but it is starting to be important to follow the evolution of movements in the next few hours or days.

In case of a return under 14,800 dollars, this would be a dangerous double maximum in the long term.

For Bitcoin it is necessary, in case of a breach of the 14,800, not to lengthen the trend change below $12,500, which is currently the most protected area of support for option traders.