The crypto market has been able to add on over $20 billion to its total capitalization, with the upswing seen today by Bitcoin and many of its smaller counterparts marking a full erasure of the losses incurred during the mid-March meltdown. The significance of today’s price action extends far beyond just boosting the market’s technical strength, as it has also revitalized investors – an occurrence indicated by trading volume on crypto exchange Binance hitting a fresh all-time high today. This comes as the benchmark cryptocurrency’s fundamental undercurrent grows stronger, with the influx of new retail investors into BTC suggesting that there may be a shifting market dynamic that ultimately allows it to continue climbing higher. Crypto Market Volatility Surges, Sending Trading Volume on Binance to an All-Time High Bitcoin and the entire crypto market saw intense bull-favoring volatility this morning that came about when BTC pushed from lows of $7,700 to highs of nearly $9,000, at which point it met some resistance that led it to decline slightly. In the time since making this massive movement, the market has entered what is likely a short-term bout of consolidation as the dust from this push settles. There was a trail of blood left in the wake of this volatility, as over $100 million in Bitcoin short positions were liquidated today on Bitmex alone – according to data from analytics platform Skew. Image Courtesy of Skew Trading volume also spiked as a result of this volatility, as Changpeng Zhao – the CEO of cryptocurrency exchange Binance – explained in a recent tweet that trading volume on his exchange hit an all-time high of $11 billion over the past 24-hours. “ATH in trading volume on Binance, $11 billion in 24 hrs,” he said, further going on to explain that he believes the last time a number of this magnitude was seen was in January of 2018. ATH in trading volume on @Binance, $11 billion in 24 hrs. https://t.co/lx27tfP8Db — CZ Binance
(@cz_binance) April 29, 2020 Fundamental Strength Continues Building Bitcoin’s ongoing rally may be different than the fleeting ones seen in years past, as the crypto is now being guided higher primarily by retail traders. Data from Skew further elucidates this notion, as the cryptocurrency’s open interest has been remaining stagnant below $500 million – suggesting that margin and futures traders have largely been sidelined. This is in stark contrast to the activity seen amongst retail traders. NewsBTC reported yesterday that data shows that the growth of new Bitcoin wallet addresses with a non-zero balance has been rocketing in recent times. Image Courtesy of Glassnode Passive investors who are buying crypto as a mid-to-long term investment may not be as apt to sell it quickly as margin traders are, providing the BTC with an undercurrent of stability that leads it higher. If the traditional markets continue on their path to recovery as well, this could further boost the entire crypto market. Featured image from Unplash.
from NewsBTC https://ift.tt/3aIBU5i
