2020-7-22 17:34 |
Bitcoin snapped a month of low volatility after spiking 3% yesterday. Although a small move, it was in the upward direction and after many weeks of no movement that had the market in elation. Also, it broke a level of temporary resistance.
At the time of writing, BTC/USD has been trading at $9,350 in the red while managing $1.15 billion in ‘real’ trading volume.
Tether, however, is still recording nearly double its volume. As a matter of fact, the aggregate daily dollar value of transactions made in stablecoins has been outdoing Bitcoin, the first time it happened was on June 29. Now, Tether is poised to surpass bitcoin.
“At this pace it looks like Tether alone will catch Bitcoin within a month or two,” said Nic Carter, co-founder of Coin Metrics.
The most popular, dominant, and controversial stablecoin has been often used for settlements and in various lending and borrowing apps, especially DeFi. It also serves as a conduit to conduct trading between different cryptos.
The volatile native cryptocurrencies are preferred by users for holding as such these coins have surrendered a fraction of their utility to “more convenient stablecoins.”
What are the Odds?Interestingly, while bitcoin moved slightly, gold has settled at a nearly 9-year high on the back of a fiscal rescue plan by European leaders and expectations for more stimulus from the US government.
While the traditional safe-haven asset jumped to 1865 today before tracing back to 1855, just 3.5% away from its all-time high of 1920, Bitcoin is stuck just above $9,000.
“It is early proof that bitcoin is inflation resistant,” said Charlie Morris of ByteTree.
Bitcoin, Nasdaq, and gold rebased to 100 since 24/9/2018, Source: ByteTree“Silver pumping. Gold pumping. Stocks pumping. More stimulus incoming. DeFi and mid-caps have been on fire. Odds say BTC breaks up. Would be quite a disappointment if it didn’t in this environment,” said analyst Ceteris Parbius.
Just yesterday, the European Union ended a four-day summit with an agreement on a $2.1 trillion budget and COVID-19 package.
The yellow metal has been benefiting from loose monetary policy, low real yields, increased asset allocation, and record inflows into exchange-traded funds. It is further boosted on expectations that fiscal stimulus efforts could increase inflation and lead to a weaker US dollar, which would make commodities cheaper for users of other currencies.
“Clearly, the passage of the EU recovery fund combined with the beginning of negotiations on another U.S. stimulus package provides a solid backdrop for the bull camp,” wrote analysts at Zaner Metals. “Currency forces should be poised to add to the bull track.”
Silver, however, is the star of the market, which has rallied to prices not seen since 2014. It has outperformed gold so far this month, which reflects growing market optimism about the outlook for the global industry, as silver has many industrial uses.
However, fresh US-China tensions are weighing on investors with global equities sitting near a five-month high. The Trump administration and Senate Republicans meanwhile are struggling to reach consensus on another stimulus plan.
“I’m more concerned going into the August, September period: what’s going to then be the next catalyst to take the broader market higher,” said Andrew Sheets, a cross-asset strategist at Morgan Stanley. It’s going to be “a tougher period for stocks,” he said.
Bitcoin (BTC) Live Price 1 BTC/USD =$9,386.5827 change ~ -0.19%Coin Market Cap
$173.08 Billion24 Hour Volume
$3.12 Billion24 Hour VWAP
$9.37 K24 Hour Change
$-18.0518 var single_widget_subscription = single_widget_subscription || []; single_widget_subscription.push("5~CCCAGG~BTC~USD");Similar to Notcoin - TapSwap on Solana Airdrops In 2024
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