Bitcoin Currencies News & Updates

BTC Smashes 7500 USD. Here´s Why!

The crypto #market has made a spectacular #return as it added $28 billion in the past 48 hours. The #bitcoin price surged past $7,400 and hit a new 2019 #high, #marking the start of a new #bull market.

In many major #markets, the #volume of bitcoin has returned to the late 2017 level with the “real 10” daily spot volume of #bitcoin surpassing $1.9 billion.

The bitcon price hit a new 2019 high after surging over $7,500

The “real 10” volume #calculates the daily #volume of BTC using ten #exchanges that have more than $1 million in legitimate #volume. In #March, the “real 10” #volume was estimated to be around $270 million.

WHY IS BITCOIN RISING SO RAPIDLY?

Alex Krüger, a global #markets #analyst, said that the recent #rally of BTC was initiated without the #involvement of the #mainstream.

Alex Krüger@krugermacro

This rally is happening without the general public yet involved en masse. This is very bullish.

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The upward #momentum of the #crypto market in the past three days was likely caused by existing #capital within the crypto #market moving into major crypto #assets, rather than new #money flowing into the market.

In April, Three Arrows #Capital #CEO Su Zhu estimated the amount of #fiat that exists within the crypto market #ready to be allocated to #crypto assets is hovering at around $6 billion.

“Theres an estimated $2B in cash sitting at crypto #funds/#holdcos. Theres another $2B+ sitting in #stablecoins, and another $2B sitting at #exchanges/silvergate/signature. This is $6B fiat already onboarded to #crypto to buy your bags. Imagine thinking we need new money to hit $10k,” Zhu said.

#Investors within the #crypto market are likely to have triggered the recent run of #bitcoin, which was further fueled by the #liquidation of shorts on major #crypto #exchanges that led to a proper #short squeeze.

DOES THE MARKET HAVE FUEL LEFT?

Following a staggering $28 billion #recovery and a 30 percent rally by #bitcoin in a span of a #week, some #traders have expressed #concerns over the lack of clear #stimuli that could sustain the current #bull run of crypto #assets throughout the near-term.

The crypto market added $28 billion in the past 2 days as the bitcoin price surpassed $7,500

One #cryptocurrency trader suggested that the #CME bitcoin futures #market, which closed at $6,290 on Friday, could further #intensify the #momentum of the market as it opens on Monday.

The trader said:

CME BTC bitcoin futures closed at 6290 on Friday. Tomorrow (Sunday) at 18:00est is the market open, mark your calendar, it will be lit.

Just so you have an idea, on every tick ($5) move is $25 for every contract you are holding. If you had an outright (no hedge) short at the close and we open at the price above you are down $4,300 for every contract you are holding. Friday volume was about 6,500 contracts.

For context, although the bitcoin #futures #market has been largely dismissed in the past year due to the #presence of fake volumes in the #crypto #market, in March, #Bitwise Asset Management estimated the futures market to account for around 35 percent of bitcoin’s #volume in early March.

Bitwise@BitwiseInvest

16/ Additionally, 5 out of the 10 exchanges have implemented sophisticated market surveillance tools to prevent market manipulation and bad behavior.

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Bitwise@BitwiseInvest

17/ And, when you remove fake volume, CME and CBOE futures volume is significant ($91M), especially compared to the real spot volume (35% for Feb 2019).

This is good news because it means CME— a regulated, surveilled market— is of material size, which important for an ETF. pic.twitter.com/pVqMqPSZkt

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If the #futures #market opens with a strong fear of missing out (#FOMO) from investors that observed the #parabolic rally of the dominant #cryptocurrency over the weekend, it may serve as a potential near-term stimulus for the #asset.

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