Bitcoin, crypto derivatives, and DeFi remain hot as of late July.
Just a week ago, the bitcoin price hit an intraday high of $ 9,568 in a low-volume environment. This week’s action, fueled by rising exchange volumes, has traders excited about the idea that a long-term bull market could be back. Up to $ 446 million in operations were made at Coinbase on Monday.
“The market has clearly jumped into a bullish position,” said Vishal Shah, an options trader and founder of the Alpha5 derivatives exchange. “The volatility is higher and we are now seeing the previous resistance of $ 10,550 as our new support region.”
Some analysts say the move to $ 11,000 is just the beginning of the world’s oldest currency that continues with a rise in prices. “We do not consider the change to $ 11,000 to be significant and we anticipate much higher valuations,” said George Clayton, managing partner at Cryptanalysis Capital.
Clayton noted that the European Union approved a stimulus measure of € 570 billion, and a US package in process that could provide $ 1 trillion in new spending if an agreement is reached between President Trump and Congress. “These actions amount to rampant degradation of the fiat currency. The crypto movement is just beginning, “he added.
The crypto derivatives market is also heating up again, Shah added. “What’s most interesting to me is that the CME volumes have been very strong in the last two days.” In fact, CME’s volume of options has recovered significantly during a month of July that had previously been deprived of stock; Open interest now exceeds $ 250 million.
Andrew Tu, an executive at quantitative trading company Efficient Frontier, cautions that stock performance plays a bigger role in cryptocurrency markets than many might imagine, especially if stocks go under. “A correction in traditional markets due to deteriorating fundamentals could also cause setbacks in the crypto world,” Tu noted.
Ether (ETH), the second-largest cryptocurrency by market cap, rose on Wednesday, trading around $ 322 and rising 1% in 24 hours from 20:00 UTC (4:00 pm ET).
In early July, the total user count on the Balancer exchange was 7,184, according to data aggregator Dune Analytics. The number has increased 140%, to 17,438 since then for the Ethereum-based DeFi project. “Balancer made an excellent product that allows you to create your own ETF and not pay a rebalancing fee and actually receive commissions for trading,” said Azamat Malaev, co-founder of HodlTree, a new DeFi protocol for interest-generating tokens. .
Malaev also pointed to Balancer’s BAL token distribution and stake returns as another factor contributing to July growth, despite the token’s performance falling 25% in the past 30 days, according to CoinGecko. Balancer uses the Composite model to distribute his tokens. Now the percentages are lower, around 30% annually, but also very attractive. ”
Digital assets at CoinDesk 20 are mixed on Wednesday. Notable winners as of 20:00 UTC (4:00 pm ET):
Notable losers as of 20:00 UTC (4:00 pm ET):
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