American stock indices have slowed down recent upward movement in the area of historical highs, gold, silver or oil are consolidating, and in the meantime the prices of the cryptocurrencies started to rise dynamically – with bitcoin as the leader of the whole peloton.
Still tonight, the bitcoin exchange rate expressed in the US dollar reached its highest level since December 2017, rising to almost 18500 USD. Thus, since the beginning of the year, the BTC/USD exchange rate has increased by more than 150 percent. In one month alone, the growth exceeded 50 percent, and over the last days, BTC has increased by almost 30 percent. This shows that there may be a parabolic upward trend on the market at the moment, similar to that of the last quarter of 2017 and spring 2019.
As market data for BTC show, both the volume of transactions and the number of open positions on the Chicago CME futures exchange are rising. Their total value broke the record and reached USD 1 billion. The capitalization of the entire BTC market has also recently broken the record, as BTC is now more in circulation than in 2017, and amounted to over USD 335 billion. The previous record set on December 17, 2017 was USD 323bn, according to coinmarketcap data. It seems that the demand for bitcoin-based products is also growing. The Digital Asset Management Review found that the total volume of traded products (ETP) increased by 53% over the last 30 days. Average daily volumes are now USD 173.5 million compared to USD 113 million in October. ETP is a type of securities that tracks underlying securities, indices or financial instruments, in this case bitcoin, cointelegraph said.
Behind the current bull market may also stay institutional demand, which more and more willingly sees bitcoin as an alternative to fiat money. American billionaires like Paul Tudor Jones or Stanley Druckenmiller have also recently expressed positive opinions about BTC. What is interesting about the whole current trend is the fact that, contrary to the 2017 trend, it does not interest the general public. The number of bitcoin searches in Google is about 80 percent less than 3 years ago.
Nevertheless, there is no shortage of opinions that in the area of the historical high at 20 thousand USD there may be very high volatility or even a powerful correction due to the fact that practically all the wallets on which BTC has been located so far may be in potential profit. This, in turn, may tempt profit-taking, including those who bought bitcoin in the area of 20 thousand USD three years ago. Therefore, it seems that the bitcoin market is only just beginning to attract the attention of a wide audience.
Daniel Kostecki, Chief Analyst Conotoxia Ltd.
Materials, analysis and opinions contained, referenced or provided herein are intended solely for informational and educational purposes. Personal opinion of the author does not represent and should not be constructed as a statement or an investment advice made by Conotoxia Ltd. All indiscriminate reliance on illustrative or informational materials may lead to losses. Past performance is not a reliable indicator of future results.
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