Bitcoin is making up for lost profits after hitting a one-week low. Over at Ethereum, the reimbursement situation remains problematic for traders.
Bitcoin rebounded Wednesday, making profit from a 24-hour low of $ 11,119 on spot exchanges such as Coinbase, a price point not seen since August 5th.
Constantin Kogan, partner at crypto-currency-of-funds BitBull Capital, sees a sideways market where the price of bitcoin can go either way.
“If sellers take control of the market, it’s likely that BTC will be seen at $ 11,390 per coin. However, there is a chance that the market will overcome resistance at $ 12,000 and retest the annual high at $ 12,300, ”Kogan told CoinDesk.
Where the market follows may depend entirely on the biggest players. Institutional interest has an enormous role to play in the crypto market by 2020, Kogan added. “Bitcoin has in several ways reiterated the movement in the fourth quarter of 2016, on the eve of the crypto boom of 2017,” he said. “But this time, institutions are also playing an important role in the market.”
One promise statistic: Bitcoin spot volumes are much higher this month than last month so far, with July Coinbase volumes averaging $ 100 million and August at $ 198 million so far per day, according to data aggregator Skew.
Increased volume in August has clearly led to a jump in volatility, added Rupert Douglas, head of institutional sales for crypto-brokers Koine. Traders like to take advantage and take advantage of higher volumes. “There’s a lot more downside to this market, but there will be sharp pullbacks along the way,” Douglas told CoinDesk.
Ether (ETH), the second largest cryptocurrency by market capitalization, was trading above $ 388 on Wednesday, climbing 2.7% in 24 hours from 20:00 UTC (16:00 ET).
The average fee on the Ethereum network required to execute transactions, including in decentralized finance, like DeFi, applications, is as high as it has ever been. It is currently at 0.009255 ETH, which is more than $ 3.60. In the five-year existence of Ethereum as a platform, fees are now literally off the charts, according to data aggregator Blockchair.
These fees, also called gas, cause pain for traders. This is especially true for marketers who have seen the price of gas double in the past week and cannot exactly predict how much higher it may go in the full term due to the explosion of interest in DeFi in general.
“It creates a lot of decentralized exchanges,” said Peter Chan, lead trader for crypto-trading company OneBit Quant. “We and a few other market makers have been forced to stop bidding since gas costs are so high.”
Digital possessions on CoinDesk 20 were mixed on Wednesday. Notable winners since 20:00 UTC (16:00 ET):
Notable losers since 20:00 UTC (16:00 ET):
