What's up today ?
Cryptocurrencies enjoyed rare stability over the weekend, as the market extended its recovery from four-month lows. In the process, total trade volumes fell back below $10 billion, a sign of tepid trading conditions in the market.
Lower trading activity was reported across the crypto market this weekend, with most assets struggling to attract more bids during one of the most pronounced downtrends in history. However, coin values strengthened to a combined $265 billion on Sunday, up from $249 billion two days earlier.
Only 18 crypto assets recorded higher trade volumes over the past week. Using bitcoin as a proxy, average volumes plunged by about a third between Tuesday and Sunday. Over the last 24 hours, roughly $9 billion worth of digital currencies were traded on the open market.
As far as exchanges go, over 18% of total transactions were made through Binance, which recently announced it will relocate to the tiny Mediterranean country of Malta. OKEx saw more than 13% of the daily turnover, while Huobi facilitated nearly 12% of total transactions. Upbit and Bitfinex rounded out the top-five on Sunday.
Crypto trade volumes surged past $30 billion at the height of the bull market. Though significant, overall liquidity was still a fraction of other, more established markets. This general lack of liquidity is largely responsible for the severe price swings that govern crypto trading.
Other thing, crypto assets rose broadly on Sunday, although gains were generally limited to 2-5%. Bitcoin edged up 1%, where it held above the $7,000 mark. BTC/USD swung sharply lower last week, threatening a major bear-market reversal.
Ether values were up 3% on Sunday to $400 even. Meanwhile, Ripple XRP climbed 2.3% to $0.50 and bitcoin cash rose 1.6% to $655.
While there were no major catalysts for the modest price recovery, cryptocurrencies have been known to rally over the weekend, especially in recent times. This trend has been picked up by few sources, but a closer look at the three-month capitalization chart reveals several instances where markets rallied on the quieter Saturday and Sunday sessions.
The three-month downturn has elevated bitcoin’s status as the world’s no. 1 cryptocurrency. While bitcoin has never relinquished this title, its impact on the overall market declined significantly during the bull market.
We would like to end this state of mind with what David Chapman said recently on an interview “One of the really fascinating things that kept me coming back to bitcoin when I first saw it is that there was no central authority. That means no one can stop it. A bank can’t stop it. A dictator can’t stop it. Parents can’t stop it.”
Let's hope it will never stop !