The trading volume of the cryptocurrency market reached 244 billion US dollars in the past 24 hours, setting a new high since March 6
Markus Thielen, the founder of cryptocurrency research company 10x Research, wrote an analysis stating that the key considerations for current Bitcoin traders are as follows:
1. Although many people attribute the sell-off of Bitcoin to the closing of Japanese carry trades, the actual situation is more complex. Since mid-March, Bitcoin has been in a vulnerable state. Despite a 15% rise in the Nasdaq index and a 10% depreciation of the yen, Bitcoin still fluctuates within its range. Carry trading relies on high US interest rates continuing but this is unlikely to persist.
2. In the past 24 hours, crypto market trading volume reached $244 billion USD which is highest since March 6th. After hitting new highs on that day, Bitcoin experienced significant intraday liquidation. Even though we were very optimistic about markets in February and early March, we became cautious after sharp declines - it turned out to be right decision.
3. Financial markets are like puzzles that need regular reassembly with new asset price driving factors constantly emerging; now is such time. Unlike dramatic drops in April and June being alleviated by increasing leverage,this reversal may not occur.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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