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eToro Market Updates: Welcome to the Summer of Cryptocurrency!
Hi everyone,
Welcome to summer!! Be careful, it’s hot.
After the prolonged crypto winter of 2018, the cryptocurrency market has become by far the best-performing asset class of 2019 this year, and that was just spring.
The increase of about 14% recorded last night is a clear indication of the extreme heat and the change of season. But be careful before you rejoice. If we learned anything from the movie Frozen, euphoria can be dangerous. Remember Olav’s solo song?
While we haven’t seen any of the dramatic dangers that sometimes come with over-enthusiasm (too much web traffic, blockchain congestion, etc.), a massive bull market retracement of 20% or more is always a possibility. So, trade cautiously and always diversify your portfolio.
Now let’s take a look at who’s driving this thing.
@MatiGreenspan – eToro, Senior Market Analyst
Today’s highlights
- Ghost city
- Bitcoin is in charge
- They are the professionals
Note that: All data, figures and charts are as of June 26. All trading involves risk. Only risk capital you can afford to lose.
Traditional markets
Today we’ll make this section short and sweet. Not only is it not at all what interests you, but not much has changed lately. Central banks are extremely accommodative and everyone is looking forward to the Trump Xi Meeting in Osaka at the end of the week.
The VIX he’s dead. This place is a ghost town.
The Fed’s dovish tendencies that we talked about yesterday are still very much present.
It’s not high season
Yes, there has been some movement in altcoins, but please don’t call it altseason. Bitcoin is definitely in the driving seat of the cryptocurrency market right now.
THE bitcoin dominance index it is at its highest level since 2017 and is growing rapidly.
Messengers the data shows that Bitcoin volumes are actually higher than most of the rest of the cryptocurrency market combined.
Not to mention the performance. The only alt that is currently outperforming is NEO, and it would be difficult to say that “Chinese Ethereum” is driving anything.
Overall, last night’s breakout came on very strong volumes across all sectors. This includes exchanges, futures and on-chain transactions. However, bitcoin is handling the load with ease and the mempool waters are good. This means that there is absolutely no congestion in the bitcoin blockchain, and there is very little transactions awaiting confirmation.
Last crypto summer we definitely tested the capacity of the network. But since then the capacity has been increased. Let’s see if we start testing the new capacity in the coming weeks/months.
So what is driving Bitcoin higher?
Industry insiders know very well what is driving the market and have in fact been expecting this bull run for some time now. This is because they are the prime mover.
Right…
All data we have indicates that the current rally is coming from CryptoTraders, like you readers, who are already familiar with this unique market.
Let’s start with this graph from google trends data for the search term “bitcoin” over the past three years.
There has been a steady increase since the start of this year, but the level of applications is nowhere near what it was at the peak last cycle. This tells us that those who purchase at this moment do not necessarily have to go through Google.
This rating is consistent with data from coinlib, which shows the following map of money flows in the cryptocurrency market. As we can see, most of the inflows into bitcoin and ethereum come from USDT.
There’s new fiat money on the way, but it looks like most of the action is coming from money that’s been sitting idle in stablecoins.
Further confirmation of this trend comes from data compiled by Cryptocompare, which shows a growing trend where cryptocurrency-to-cryptocurrency trading volumes are growing at a faster pace than fiat-to-cryptocurrency trading volumes.
The reason is also known. We’ve covered the many reasons for Monday’s market update, so feel free to review it hereor review ours Weekly Interview with CoinTelegraph where we discussed the four main factors.
As always, let me know if you have any questions or need more information.
Good summer!!
About the Author: Mati Greenspan is a Senior Market Analyst at eToro Connect with Mati on…. eToro: http://etoro.tw/Mati Twitter: https://twitter.com/matigreenspan LinkedIn: https://www.linkedin.com/in/matisyahu/ Telegram: https://t.me/MatiGreenspan Office Phone: +44-203-1500308 (ext:311)
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