BCGAME - Free 5BTC Daily Bonus!- Bitcoin (BTC) is trading around $38.532 as of 21:00 UTC (16:00 ET). Earning 1,7% in the last 24 hours.
- Bitcoin 24-hour range: $37.311-$39.402
- Ether (ETH) is trading around $2.789 as of 21:00 UTC (16:00 ET). On the green 1,1% in the last 24 hours.
- 24-Hour Ether Range: $2.673-$2.882
In this article, we will discuss:
Bitcoin exchanges remain stable
Bitcoin, the world's largest cryptocurrency by market capitalization, rose 1,7% on Thursday. It was below the 10-hour moving average but above the 50-hour one, a flat signal to market techs.
O BTC price jumped from $37.311 at 05:15 am UTC (10:15 pm ET Wednesday) to $39.402 at 13:30 pm UTC (6:30 am ET) on Thursday, a 5,6% gain based on the data . Bitcoin has then stabilized a bit, at $38.532 so far.
“We expect spot bitcoin to trade in a short-term range with a slight uptrend as the frantic leveraged longs were lost,” notes trading firm QCP Capital in its most recent investor note. "We saw significant purchases and sales at the $30.000 and $40.000 levels, respectively."
According to data aggregator Skew, the cost of perpetual swaps, which is the liquidity provided to leveraged traders, has consistently hovered near zero (0%) since May 26th.
It's a sign that many traders aren't building up leverage to go directional anyway, because funding rates will either burst or fall based on bullish or bearish guidance.
“BTC tried to break $40.000 to get out of the $30.000-$40.000 range we were stuck in after the mid-May crash,” said Elie Le Rest, partner at quantitative trading firm ExoAlpha. "Therefore, the $40.000 line appears to be breakable as market participants are regaining confidence after the big drop two weeks ago."
On May 23, bitcoin hit a three-month low of $34.259, while ether dropped to $2.080 that day.
Increasing BTC volatility, ETH takes a break
The 30-day volatilities on BTC (46%) and ETH (68%) spiked after falling to 2021 lows on April 15. Ether's 30-day volume, for example, climbed to 175% on Tuesday before falling while bitcoin's appears to continue rising, at 92% in Wednesday's closing data.
“We are still cautious of a potential downside from the BTC as volatility distortion remains high, with puts being substantially more expensive than call options,” noted QCP Capital on Thursday. "We think negative vols are a decent sell."
The steady rise in volatility comes after the crypto price plummeted on May 23, noted David Russell, vice president of Market Intelligence at brokerage TradeStation Group.
“It's natural to expect more volatility after the kind of liquidation we got in late May,” Russell said. "It's also normal for prices to pause and consolidate after a big change."
Ether volumes greater than BTC again
The second largest cryptocurrency by market capitalization, ether was trading around $2.789 at 21:00 UTC (16:00 ET), gaining 1,1% from the previous 24 hours. The asset is below the 10-hour moving average but above the 50-hour, a sideways signal to market technicians.
Ether won from $2.673 at 02:00 UTC (7 pm ET Wednesday) to $2.882 at 13:15 pm UTC (6:15 am ET) on Thursday, a 7,8% rise based on Since data then, ETH has lost some steam, with $2.789 to date.
Over the past five days, the daily trading volume of ether on the main monitored spot exchanges was greater than that of bitcoin. It's an extension of consistency that goes back a month, as 14 of the last 30 days have seen ETH's trading volume higher than BTC's.
George Clayton, managing partner at investment firm Cryptanalysis Capital, says that newer capital entering the market may be looking at ether's prospects for bitcoin in the future, leading to higher volumes.
“Maybe ETH is seeing a little more institutional flow,” Clayton said. “For institutions that have successfully fitted encryption into their compliance frameworks and have already invested in BTC, ETH is the next step.”
Ethereum usage costs drop
The cost of “gas”, the fees paid in ether to use the Ethereum network, is close to a three-month minimum. After reaching an impressive average or average price of 305gwei for interacting with the network on May 11th, this price has dropped to 24gwei on May 30th. Gwei is defined as one billionth of an ETH, so 1 gwei is equal to 0,000000001.
The drop in rates is a good sign that despite the increased usage of the Ethereum network, the costs are much lower than they were in a while. This is especially true because the price of ether has been slowly trending up, which historically has caused rates to jump, noted TradeStation's Russell.
“Ether is already back close to its early May levels,” Russell said.
Other markets
Digital assets are up on Thursday.
Notable winners from 21:00 UTC:
- filecoin (FIL) + 27,2%
- the graph (GRT) + 14,5%
- algorand (SOMETHING) + 7%
Notable losers:
- yearn.finance (YFI) – 1,5%
- stellar (XLM) - 1,5%
- eos (EOS) - 1%
Actions:
- The S&P 500 in the US fell 0,20% on a sale by investors in the technology sector.
Commodities:
- Gold is down 1,9% to $1.871 so far.
Treasures:
- The yield on 10-year US Treasuries rose on Thursday to 1,623, up 2,2%.
