After the last week’s rally, the price of Bitcoin defended positions and fluctuates near 8,700 USD resistance area. The cryptocurrency experiences slight correction during the last 24 hours, losing less than 0.4%. Around 07:00 a.m. ET, Bitcoin is traded at 8,683 USD.
In the past month, within a 30-day span, the Bitcoin price has surged 60% to about 8,700 USD, as the valuation of the crypto market rose by 100 billion USD.
According to the analysts, the recent surges in Bitcoin are mainly based on the supply side. There is already a shortage of Bitcoin in the world and with the halving event coming up next May, the countdown to even less supply has already begun. Over 26% of circulating supply, 36 billion USD worth of Bitcoin, now sit in addresses that have a balance of 1000-10k BTC. In August 2018 when Bitcoin was also at 8,000 USD, these “Firm Size” addresses held under 20% of the circulating supply showing a sharp accumulation of nearly 7% in less than a year.
A recent analysis has shown that the Top 10 crypto exchanges reported nearly 2 billion USD in trading volume on May 27. The reason this figure is important is that gold, an asset that competes with the main cryptocurrency, reported only 1.2 billion USD trade volumed during the same day. Bitcoin’s total trading volume reached 2.03 billion USD. Binance, Coinbase, Bitfinex, Kraken and Bitstamp contributed significantly to this. Binance posted the biggest trading on its platform, recording 729,809 million USD, while Coinbase took second place with 342,604 million USD.
Major crypto assets such as Ethereum, Litecoin, and EOS have seen gains above 100% year-to-date, with Binance Coin, the seventh most valuable crypto asset in the global market, recording a staggering 437% gain against the USD.
Last two days, there has been a bit of a cooling off for Bitcoin and crypto markets following solid gains over the past couple of days. Red has seeped into the charts as losses begin to accelerate during Asian trading today.
Crypto markets recap
The major cryptocurrencies are trading mixed on Wednesday following the sharp bulls’ move from last Sunday.
Ethereum stalled at 270.31 USD, recording a minimum increase of 0.1%. However, Ripple’s XRP and Bitcoin Cash inched higher, advancing by more than 3% to 0.4411 USD and 447.71 USD, respectively.
The biggest increase was registered by Bitcoin SV and IOTA, both adding 20% to their value and trading at 145.40 USD and 0.5089 USD, respectively. The appreciation of IOTA came after Tangle team announces the next evolutionary stage for the platform. A move closer to full decentralization with “Coordicide” has driven IOTA fomo today.
The most significant decline among the major cryptocurrencies is registered by Monero, which wiped out 3% to 94.04 USD.
The total crypto market value is 273.4 billion USD.
Crypto market is unpredictable, although the cycle is clear
As Bitcoin’s price is approaching 10,000 USD, the market still shows signs of doubt due to the speed and power with which cryptocurrency has risen from the depths of the bear market.
Nobody expected the crypto assets to gain so strongly, following the longest bear market to date.
Price targets set by the investors at a time when the bottom was released – around mid-December – clearly shows how unpredictable the crypto market is. Nobody ever thought Bitcoin would break 6,000 USD and soon after, it would go to 10,000 USD.
The cycles in financial markets are going in the same way, and although this is an emerging asset like no other, Bitcoin is no different models and demonstrated the formation of peaks and deteriorating investor sentiment.
Bitcoin’s price rose significantly in 2017, forming a peak during a bubble, which led to 85% drop after the parabolic gain of the cryptocurrency.
At that time, some crypto investors started looking for prices in the range of 2,000 USD and some even expected 1,000 USD or lower.
Instead, the cryptocurrency has already turned to a potential breakthrough of 10,000 USD.
Most of the crypto society assumed that BTC would not start a new bullish market for at least another year. The rally shocks investors from all sides, suggesting that the crypto market just goes out of the mistrust.
What comes after mistrust is a new hope followed by optimism.