The traditional markets were insane yesterday, the likes of Apple and Amazon climbed to their all-time high and reached $1.5 trillion valuations. Tesla stocks also went straight up. And in the crypto market, Chainlink made a new ATH.
This year while technology stocks have been soaring, banks’ have sunk. Also, the world’s largest pension fund, Japan's Government Pension Investment Fund (GPIF), reported a record quarterly loss of 17.71 trillion yen ($164.74 billion) in January-March.
The digital payment company, Square also rallied 13% on Monday after an analyst suggested it could win as much as 20% of US direct deposit accounts.
Square, that enables users to buy and sell bitcoin, saw their market valuation doubling since May at $55 billion and is now worth more than Trust Financial Corp. While the company is still dwarfed by the big banks JPMorgan and Bank of America, it is less than $20 billion away from Goldman Sachs’ market valuation.
The world’s leading cryptocurrency, which has a market cap of $170 billion, also moved up but only about 3.3% to $9,375. And today, we are back under $9,250.
This sideways trading in bitcoin is, however, surely turning out to be a bullish factor for altcoins, especially DeFi tokens.
Crashing Volume & Volatility
Bitcoin volatility has also fallen to a recent low, following a spike in its volatility in mid-March during the height of the global uncertainty amidst the COVID-19 crisis.
With BTC price hovering around $9,000, its volatility has fallen in line with that of the S&P 500. But the subdued volatility means the sparks could soon follow.
10-day #bitcoin volatility is at a recent low as spot prices has stayed within a tight range around $9,000.
Price options accordingly, vol incoming. pic.twitter.com/GCqBMd2M8w
— John Todaro (@JohnTodaro1) July 6, 2020
The ‘real’ trading volume was currently at $1.3 billion, a bit higher than the past few weeks when it dropped under a billion-dollar.
Even BTC trading into USDT decreased by 56% in June as did USD (44%), JPY (38%), EUR (45%), and KRW (50%).
It wasn’t just spot volume; futures volume of CME dropped by 23% in June from May, while crypto derivatives had their lowest monthly volume in 2020. But while crypto derivatives volume fell 35.7%, spot volume crashed a whopping 49.3%.
However, CME's total options reached its peak of 8,444 contracts that traded up 41% since May when 5,986 options contracts.
Alt season, Bull Market
The Bitcoin network meanwhile remains healthy, and on-chain indicators point to an optimistic state. Even bitcoin whales have taken to HODLing with their population seeing its largest period of “largest period of sustained growth since 2016.”
Price-wise, trader Crypto Gainz points out “BTC at resistance and legacy markets possibly pulling back a bit,” as such he has taken to continue trading defensively until “bullish continuation validation” comes.
Meanwhile, trader Crypto Michael believes the ongoing scenario in the altcoin market to continue throughout July to the beginning of September. As for Bitcoin, he sees a massive breakout above $10,500, which could take the digital asset to $14,000-$16,000 only to go through a correction period on Q4 2020.
“January 2021 -> next altseason. Bull market,” he said.