The crypto-market was imagining a great deal of momentum recently, particularly in light of price volatility making a comeback. With costs going north, Bitcoin and several of the market’s altcoins have provided excellent returns for investors. However, while traditionally several have leaned on Bitcoin, traders may currently be eyeing altcoins for its long-term across the world’s biggest cryptocurrency.
Throughout the period of reduced volatility, the Bitcoin marketplace was moving backward whereas small crypto-assets were trading in a greater price. Even as BTC was able to provide 24% in yields in July among other USDT-Margined contracts, alts such as VeChain [VET] and Chainlink [LINK] outperformed every other crypto recording 95% and 70% in profits, respectively, based on Binance’s July trading report.
While VET returned 266% in YTD, LINK was arriving 379%. This abrupt rise from the price of both electronic assets gained attention from dealers, particularly those alt traders that have been seeking to handle risk and conquer the very low volatility at the Bitcoin marketplace.
Since the place market fades, derivatives trades were noting a rise in volume and interest. Binance reported that its Futures volume climbed from $87.6 billion to $109.4 billion in July, a 25% spike in the preceding month. In reality, in addition, it reported that an ATH in volume over $13 billion traded on 28 July, a day when BTC’s price crossed $11k.
Interestingly, the altcoins dominated the volume in the initial weeks of July as the metric rose from 32% to 60%. This was significantly contributed to by the great volatility in the VeChain, Chainlink, and Cardano market. Later on, as said volatility reached Bitcoin, its volume was observed to have risen from 40% to 60% within a few days.
Interestingly, this increase in the volume of Bitcoin did not correspond with a growing Open Interest in the Futures market. According to data, the total OI was recorded to be $900 million, which was the largest for Binance. However, BTC’s OI was observed trending lower, falling from 67% to 47% in July. Instead, altcoin contracts have been driving most of the growth in Open Interest.
The growing contributions of altcoins to the market’s volumes and Open Interest suggests that traders may be placing their long-term directional bets altcoins, maybe not Bitcoin.