Bitcoin is back in the spotlight for positive cryptocurrency banking news from Europe. Ethereum’s shine eases slightly on Thursday based on some data on volume, volatility and options.
- Bitcoin (BTC) is trading at $ 36,732 at 21:00 UTC (16:00 Eastern Time). 1% more over the previous 24 hours.
- Bitcoin 24 Hour Range: $ 36,250- $ 38,200 (CoinDesk 20)
- Ether (ETH) is trading around $ 2,465 at 21:00 UTC (16:00 Eastern Time). In reds 3.8% over the previous 24 hours.
- 24 Hour Ether Range: $ 2462-2617 (CoinDesk 20)
Bitcoin surpasses $ 38k then loses momentum
Bitcoin, the world’s largest cryptocurrency by market cap, is up 1% on Thursday at press time. The price was below the 10-hour moving average, but above the 50-hour moving average, which is a sideways signal for market specialists.
Bitcoin price jumped from $ 36,304 at 09:15 UTC (5:15 ET) to $ 38,200 by 10:45 UTC (6:45 ET), down 5.2% in less than two hours according to CoinDesk 20. Bitcoin then lost momentum, dropping to $ 36,732 at time of publication.
One factor that could have influenced the short-term rise in the price of bitcoin: The Basel Committee of the Bank for International Settlements, the European regulatory agency, tried on Thursday to set much-needed rules on banks that are allowed to hold various cryptocurrencies.
BTC was last able to overcome $ 38,000 on June 3rd.
It may be that BTC prices are currently more related to the large balance holders known as whales than retail, at least in the opinion of one trader.
“The whales are causing waves that now seem to counteract the breakouts that bitcoin has been trying to make for several weeks now,” said Henrik Kugelberg, an OTC cryptocurrency trader.
Bitcoin Gains Traction, But Nothing Like ETH
From Tuesday to Wednesday, Bitcoin’s 30-day year-on-year volatility increased eight percentage points to 97%. This may sound significant, but Ether tops the list of the top 10 cryptoassets tracked by CoinDesk, with a volatility rate of around 162%.
“The market appears to have settled somewhere between worries about a worsening situation and waiting,” quantitative trading company QCP said in a recent note to investors. “Retail volumes have declined and movement from whales dominates price action.”
Ether’s sky-high volatility is driven by its recent higher volumes than Bitcoin, at least in the opinion of one analyst.
“The extreme volatility resulted in ETH having higher volumes than BTC,” said Rich Rosenblum, co-founder of cryptocurrency market maker GSR. “Now that there is less leverage in the system, I see BTC volumes outperforming ETH over the next few weeks as BTC’s large market capitalization plays a bigger role” than volume.
Bitcoin volume surpasses ether this time
ETH volumes surpassed BTC volumes on Wednesday, a departure from the recent trend. Until Wednesday, when $ 53 billion changed hands versus $ 43 billion traded ETH, Ether had 11 days of run with more volume than its larger competitor.
Kugelberg, an OTC trader, believes Bitcoin could return to the spotlight.
“ETH is of course extremely important and always seems to be three times longer than any bull run in Bitcoin,” Kugelberg said. “Bitcoin is being built for the next run as I see it, and it always starts with volume growth. El Salvador [and its plan to make bitcoin legal tender] may well be an incendiary thing here. “
Read more: Volcano mining shifts from Twitter to public policy in El Salvador
Is it a bearish ether?
The second-largest cryptocurrency by market capitalization, Ether, traded around $ 2,465 at 21:00 UTC (16:00 Eastern Time), up 3.8% in the previous 24 hours. The asset is below the 10-hour moving average and 50-hour bearish indicator for market technicians.
Ether fell from $ 2,600 at 10:30 UTC (6:30 ET) to $ 2,451 by 05:30 UTC (13:30 ET) on Thursday, 5.7% below CoinDesk 20 data. ETH has since grown slightly to $ 2,465 at time of publication.
The recent drop in volume and price of ether has definitely been a source of bearish sentiment for this asset. In addition, according to data aggregator Skew, the options market is predicting even more depletion in ether prices.
The probability of the spot price of ETH at expiration on July 21, based on the options orientation, assumes a 44% chance of over $ 2,400 of Ether, with a 31% chance of over $ 2,800 and only a 21% expectation of over $ 3,200 worth of spot Ether by that time.
Some long-term crypto traders are feeling a fundamental bearish trend towards Ether because the asset depends on many unknowns in the complex Ethereum ecosystem in order to remain successful.
“I foolishly did not get on the air, because I felt very early that management problems and at times extreme gas prices would not be competitive in the long term,” said crypto trader Kugelberg.
Ethereum gas prices or network usage fees actually hit a three-month low this week.
Read more: State Street Bank Launches Cryptocurrency Division
Digital assets on CoinDesk 20 mostly fell on Thursday. One notable winner as of 21:00 UTC (16:00 Eastern Time):
- Gold is up 0.50% and stood at $ 1,897 at press time.
Read more: US Legislators Bring Bitcoin To Court At CBDC Senate Hearings
- The yield on 10-year US Treasuries fell on Thursday to 1.444, and 3.4% in the red.