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Since late March, the Bitcoin price has broken out of its correlation with the U.S. stock market. Previously, BTC closely followed the movement in the U.S. stock market, going as far as reacting to pre-market trading of the Dow Jones Industrial Average.
As such, even if the price of Bitcoin sees a large upside movement to the $7,700 to $8,500 range in the short term, the price remains vulnerable to a pullback to the $3,000 to $5,000 area.
On Thursday, April 3rd, CME reported an increase in its open interest of $217 million and its competitor Bakkt, capped at $9.3 million, indicating how quickly their operations react to the behavior of the crypto markets.
CME and Bakkt recorded peak trading volumes of $595 million and $27 million respectively, experiencing the highest growth since March 16, according to data provided by research firm Skew.
The DVAN buying and selling pressure gauge has identified a positive divergence and has flipped bullish, according to analysts at Bloomberg. The indicator assesses the underlying momentum of an asset in order to identify buying and selling pressure.
Bloomberg Intelligence analyst Mike McGlone says he expects BTC to stabilize this year and pass a “key test for Bitcoin’s transition toward a quasi-currency like gold.”
Meanwhile, the co-founder of Blockroots, Josh Rager, says BTC will need to hold onto its current line of support at around $6,700 to prevent another move to the downside.
Bitcoin has been bullish this week, peaking yesterday at over $7,083 on Coinmarketcap and even surpassing $7,200 on several major exchanges. The cryptocurrency declined below $6,900 as of today, but the bullish stance might be supported by surging oil prices.
Over the past three weeks, since Bitcoin hit $3,800 in a capitulation event, the cryptocurrency market has mounted an extremely strong recovery. In fact, just the other day, the cryptocurrency shot some 10% higher within a few hours’ time, rallying from $6,600 to $7,200 in a strong upward swing that liquidated dozens of millions worth of short positions.
After the crash on 13 March, retail exchanges registered a massive drop in OI and the CME followed a similar trend as well. However, the drop on CME was not as drastic and it continued to be relatively higher than the rest of the retail exchanges, over the last two weeks of March.
Bakkt’s Bitcoin Futures contracts also recorded a similar trend and after a minor dip on 12 March, the total trading volume had jumped back to normal levels over the same week.
Over the past 30-days, the S&P 500 volatility reached an all-time high in the average daily volatility recording 4.82%. While remaining relatively stable during the capitulation in asset markets, gold still set its highest 30-day average volatility witnessing an average of 2.36% – highest since September 2011.
As it has become customary, Bitcoin has historically seen high volatility and March was no different as the top crypto set its highest volatility since the end of 2013.
Cryptocurrency prices have always been roller coasters, and some rides are scarier than others. However, there may not be much difference in price volatility between the top two coins in the coming months, a key metric indicates.
On March 31st, Luke Martin, a prominent crypto trader featured on CNN, recently posted the below chart, showing that he expects for XRP to appreciate strongly against Bitcoin in the coming weeks.
While his comment attached to the chart was nebulous, his chart showed XRP rebounding strongly off the lower level of a long-term range against BTC, boding well for the bullish narrative.
At the CoinGeek London conference, EHR Data Inc. unveiled its plan to put billions of transactions concerning health data on the Bitcoin SV blockchain. This allows for health data to be readily available on a public ledger in a secure and cost-efficient way, while also giving patients more control of their health data.
It is rather uncommon for centralized exchanges to invest money into non-custodial solutions. Coinbase is bucking this trend by making a financial contribution to Uniswap and PoolTogether.
Most cryptocurrency enthusiasts will have heard of these two services.
In times of deep crisis such as this it’s important to stay true to who we are and that seems to get more and more difficult the deeper we get.
Last night, I engaged in an interesting discussion on social media when Bruce Fenton posed the question “Are mandated lockdowns right or wrong?”
This is something that another bitcoin though leader, Jimmy Song, is on record as being staunchly against and the libertarian in me tends to agree.
The coronavirus has managed to seep into every facet of the global economy and it seems nothing will escape its financial wrath. During the last two weeks as unemployment levels have skyrocketed in the U.S.; analysts, economists, and wealth managers have been warning about another subprime mortgage crisis. Most of these observers believe there’s no doubt the real estate market will collapse again, as economists understand that the loss of jobs, wages, and severe reduction of business activity has devastated the American economy.
As was recently reported by the Chinese publication Securities Daily, more than 40 established mining operations have been forced to shut down as a large number of Antminer S9s, an older generation of Bitmain’s popular Antminer products, have become unprofitable. An industry insider told the publication that “roughly 2.3 million Antminer S9s have been shut down since March 10,” according to data from F2pool.