This week is turning out to be good for bitcoin, so far.
On Tuesday, Bitcoin spiked above $9,400, and today, we climbed to $9,550. Currently in the green by about 2%, BTC is trading around $9,500 with $1.3 billion in ‘real’ trading volume.
This jump in BTC’s price led to a 16% increase in bitcoin futures open interest.
“The party has started,” said Spartan Black of crypto hedge fund, The Spartan Group and he expects BTC “to convincingly punch through $10.5K and head to $14K in a jiffy.”
“I have been saying that risk appetite has been rising and it is just a matter of time before this bullishness spills over to BTC and ETH,” he said.
Another positive thing was recorded in the USD value of Bitcoin transfers which has been significantly growing.
“The median BTC transfer volume is currently at $195, up more than 100% since the beginning of the year. The only time we've seen higher levels was between Nov 2017 and Mar 2018,” noted Glassnode.
Currently, bitcoin is at an important level as roughly 1.21 million addresses previously bought nearly 740k BTC at an average price of $9,518 which puts the largest level of resistance between $9,385 and $9,655, as per IntoTheBlock data.
If bitcoin moves downwards, $9,219 may act as a strong support level and prevent it from a steeper decline as 3.46 million addresses previously bought 1.94 million BTC between $9,095 and $9,219.
Interestingly, amidst these greens, the popular and controversial stablecoin Tether hit a milestone of surpassing $10 billion in market cap. In a matter of four months, the market cap of USDT doubled from $5 billion in March 2020.
The pandemic helped Tether and other stablecoins’ issuance to skyrocket as initially, it took 38 months for USDT free flat market cap to reach $1 billion and then 27 months to $5 billion.
As such, new money has arrived in crypto space but much of it is still “money sitting in fiat exchanges that do not support stablecoins,” shared Paolo Ardoino, the CTO of Tether and its sister company Bitfinex, a crypto exchange.
Bitcoin delivered too much too soon
Stocks have been having a great time since the March crash led by tech stocks. Today, they started on a red note after claims for unemployment benefits rose for the first time since March.
Optimism about improving economic data, another round of coronavirus-related fiscal stimulus, and a potential vaccine have helped tech-heavy Nasdaq to climb 19% this year and S&P 500 to recover most of its virus-induced losses to rise 1.4% YTD while the blue-chip Dow still remains down about 5%.
Amidst this silver is shining, skyrocketing to its highest level in seven years as record-low interest rates and a falling US dollar send investors rushing for traditional safe-haven assets.
Silver prices have rallied over 18% just this week, reaching $23.24, up 28% this year. These gains outpace gold which has surged to $1,875 per ounce, down from $1,888. Up 23% YTD, fast approaching its all-time high of $1,920 per ounce.
Bitcoin meanwhile is up only 30% YTD but has risen 150% since the March crash.
“While Bitcoin hasn't necessarily behaved risk-off yet (BTC's price moved in the same direction as the S&P 500 62% of the time in June), sentiment on Bitcoin and Gold is the most correlated that it has ever been,” stated The TIE.
Bitcoin might be slow for the past couple of months but it is hoped to pick up as “tech becomes exhausted,” wrote Charlie Morris, founder of ByteTree.
This is because, since September 2018, the digital asset has collapsed, recovered, and then cooled and both BTC and tech have returned approximately the same amount with the difference that “Bitcoin delivered too much too soon. With strong performance in late April and early May this year, tech has merely caught up.”