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Market Wrap: With Low Volatility, Merchants Appear to Like $9,000 Bitcoin

Over the previous month, whereas market motion has been comparatively quiet, crypto merchants have punched the purchase button when bitcoin’s price drops beneath $9,000.

  • Bitcoin (BTC) buying and selling round $9,208 as of 20:00 UTC (four p.m. ET), slipping 0.80% over the earlier 24 hours.
  • Bitcoin’s 24-hour vary: $9,201-$9,379
  • BTC above 10-day and 50-day shifting common, a bullish sign for market technicians, though buying and selling volumes on Tuesday are decrease than Monday.

Bitcoin buying and selling on Coinbase since July 5.
Supply: TradingView

“Bitcoin managed to approach the level of $9,300, after which immediately rolled back to the $9,250 area,” mentioned Constantine Kogan, associate at cryptocurrency fund of funds BitBull Capital. “The coin continues to trade in a narrow price range,” he mentioned, including that crypto markets are experiencing file low volatility. 

Learn Extra: Exchanges See Drop in Volumes as Bitcoin Volatility Approaches 2020 Low

“Such low volatility is uncharacteristic of bitcoin,” mentioned Vishal Shah, an choices dealer and founding father of derivatives exchange Alpha5. “However, this sentiment has permeated through the trading community.” 

Much less volatility has translated into fewer choices bets. Open curiosity has dropped because the June 26 expiration date and is now hovering on the $1.1 billion mark. That’s fairly a bit off from the place it was in June, when it hit a file $1.eight billion excessive, in response to derivatives information aggregator Skew.

skew_total_btc_options_open_interest-6-2
Open curiosity within the bitcoin choices market. The drop coincides with June 26 expiry.
Supply: Skew

The shortage of motion is inflicting vigilant merchants to alter their methods. For instance, there seems to be sentiment that bitcoin at $9,000 is an effective price level for merchants to purchase. “Every time the market has poked its nose below $9,000, buyers have stepped in,” mentioned Rupert Douglas, head of institutional gross sales at London-based dealer Koine. 

Certainly, over the previous month, when the world’s oldest cryptocurrency dipped beneath $9,000, merchants scooped it up on spot markets like Coinbase. 

9kbtc
Bitcoin over the previous month. Black line is $9,000 price degree.
Supply: TradingView

Douglas says the slender bitcoin price motion may not final as a result of most merchants absolutely would love extra volatility, which is what attracts many to crypto within the first place. “Bitcoin is coiled for a big move,” he informed Fintech Zoom. “I still favor the upside. I think we will see bitcoin heading above $11,000 in short order when a move comes.” 

Learn Extra: Lightspeed Invests $2.8M in Crypto Market Maker Wintermute

Kyber DEX improve skyrockets token

Ether (ETH), the second-largest cryptocurrency by market capitalization, was in the red Tuesday, trading around $237, down 0.66% in 24 hours as of 20:00 UTC (4:00 p.m. ET).

Read More: Ethereum Activity Metric Hits Highest Level in 2 Years

Ethereum-based decentralized exchanges, or DEX, have shined in 2020, with over $5 billion in volume this year so far, according to aggregator Dune Analytics. Kyber Network, a DEX and token project, recently upgraded to its Katalyst and KyberDAO protocol version. This has led to its governance token, Kyber Network Crystal, or KNC, to jump from $0.18 at the start of 2020 to $1.64 Tuesday. 

kyber2020
The Kyber Network token, known as KNC, in 2020.
Source: CoinGecko

Traders are purchasing the Kyber token for its rewards as “staking” KNC generates an ether-based return on fees paid for using the DEX. “Kyber has upgraded to Katalyst,” said Peter Chan, a quantitative trader at Hong Kong-based OneBit Quant. “There has been a staggering 6 million staking in KNC already, very impressive.”

Read More: Industry Group Seeks to Get Ahead on Staking Regulations

Other markets

Digital assets on Fintech Zoom’s big board are mixed Tuesday. Notable winners as of 20:00 UTC (4:00 p.m. ET):

Read More: Cardano at One-Year High on Shelley Upgrade

Notable losers as of 20:00 UTC (4:00 p.m. ET):

  • Oil is down 0.58%. price per barrel of West Texas Intermediate crude: $40.35
  • Gold rallied in late trading Tuesday, up 0.78% at $1,796 per ounce

goldjuly7
Contracts-for-difference on gold since July 3
Source: TradingView
  • U.S. Treasury bonds were mixed Tuesday. Yields, which move in the opposite direction as price, were down most on the 10-year, in the red 6.3%.
Disclosure

The leader in blockchain news, Fintech Zoom is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. Fintech Zoom is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

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