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New Bitcoin all time high?
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Bitcoin volatility hits six-year low: Analysts predict short-term stability
Key points:
The Bitcoin market is experiencing a significant decrease in volatility.
AxelAdlerJr's latest report indicated that the volatility had fallen to historical lows.
News - The Bitcoin market experienced extremely low volatility, according to pseudonymous CryptoQuant analyst AxelAdlerJr.
AxelAdlerJr analyzed two key volatility markers for BTC and noted a downward trend over the past few weeks, indicating a reduced likelihood of short-term price swings.
The first metric examined was BTC’s Garman-Klass Realized Volatility, which measures historical price volatility by considering the highs, lows, opening, and closing prices over a specified period. According to AxelAdlerJr, BTC’s Garman-Klass Realized Volatility has dropped to 20%. Low values in this metric signal decreased price volatility.
Historical analysis of this indicator showed that when its value dropped to this low in the past six years, BTC’s price experienced significant changes.
How is BTC doing? AMBCrypto’s analysis of the coin’s Bollinger Bands and Average True Range corroborated the analyst’s findings.
The Bollinger Bands for BTC revealed a narrowing gap between the upper and lower bands, indicating a period of reduced price fluctuations.
Additionally, the declining Average True Range (ATR) for BTC supported this trend. The ATR measures market volatility by averaging the range between high and low prices over a specified period.
The UK general election might postpone crypto regulation by several months
Key points:
A delay in crypto regulatory policy can be expected by UK crypto investors.
The Labour leadership has made only a few public statements about digital assets.
News - British Prime Minister Rishi Sunak was required to announce a general election in the United Kingdom before January 2025. However, his decision to hold one in July could delay the implementation of crypto policies in the country.
Experts chime in - CryptoUK Board Advisor Ian Taylor noted that the July 4 election would likely delay the implementation of crypto regulatory policy in the country through the Financial Services and Markets Act by several months. The U.K. government initially planned to present a regulatory framework for cryptocurrencies and payment stablecoins in July before any election.
Some remarks- “This isn’t ideal,” Taylor remarked, highlighting the delay in U.K. crypto policy. “Asia and Europe are significantly ahead in this area.”
The election could potentially alter party control of the U.K. government, which might lead to changes in crypto policy. The Conservatives have been the main governing party since 2010, but many polls suggested that the Labour Party under Keir Starmer could replace the current government after the election.
More details - Unlike many Members of Parliament affiliated with the Conservative Party, the Labour leadership has made few, if any, public statements regarding digital assets. Meanwhile, Lisa Cameron, a pro-crypto lawmaker who served as a Conservative MP from 2015 to 2024, announced in October that she would not be standing in the upcoming general election.
Cardano's market cap falls, but derivatives market indicates strong investors' interest
Key points:
Cardano held its position at number ten in terms of market cap.
The volume of ADA being traded and its open interest grew.
News - Cardano might have fallen out of the top nine cryptocurrencies by market capitalization, but its derivatives market painted a different picture. Recent data showed a positive trend with its trading volume and open interest.
ADA’s trading volume reached around $280.7 million at the time of writing, and this increase was mirrored by a rise in open interest, suggesting more investor capital entering the Cardano market.
Further strengthening this positive outlook, the funding rate sat at approximately 0.0106%, indicating more buyers than sellers. This data, along with a daily trading volume exceeding $270 million by 4 June, suggested a potentially bullish sentiment in the Cardano derivatives market, despite the recent drop in its overall market cap ranking.
Toncoin takes the lead - While data from CoinMarketCap showed Cardano holding steady in tenth position with a market cap of roughly $16.5 billion, it was overshadowed by Toncoin's surge in price and momentum.
Toncoin currently occupies the ninth spot with a market capitalization exceeding $17 billion. This shift can be attributed to Toncoin's impressive price increase of over 12% in the past week, compared to ADA's modest gain of less than 1%.
Crypto trading on centralized exchanges declined to $5.2 trillion in May
Key points:
Crypto trading on centralized exchanges experienced a significant decline for the second month in a row.
However, the derivatives market for Ethereum saw a surprising boom.
News - Cryptocurrency trading on centralized exchanges took a hit in May 2024, according to a recent CCData report. This marked a double-digit decline for the second month running, with the finger pointed at Bitcoin's price stagnation following the network's April halving.
Both spot and derivatives markets felt the pinch, with combined trading volume on centralized exchanges tumbling by 20.1% to $5.27 trillion. Spot trading volume took an even steeper nosedive of 21.6%, reaching $1.57 trillion.
A look at the derivatives market - However, a surprising trend emerged in the derivatives market. Despite a 19.4% decrease to $3.69 trillion, the derivatives market's dominance actually climbed to its highest level since December 2023. This unexpected strength can be attributed to the US Securities and Exchange Commission's (SEC) surprise approval of spot Ether exchange-traded funds (ETFs).
This regulatory shift fueled a surge in interest for Ether derivatives, with open interest for these instruments exploding by 50.3% to a record-breaking $14.0 billion.
More stories from the crypto ecosystem
Did you know?
Iceland, a land of geothermal wonders, is becoming a hotspot for eco-friendly crypto mining. Companies are harnessing the natural heat of volcanoes to power their mining rigs, reducing reliance on fossil fuels. This sustainable approach could change the game for crypto's energy consumption.
Charity coins are on the rise. These cryptocurrencies dedicate a portion of their transactions to charitable causes. Projects like Charity Coin and Humanitarian Coin funnel funds towards various social causes, demonstrating the potential of crypto to create a positive social impact.
Believe it or not, there's a project called Pigeonpost exploring using trained pigeons to carry data storage devices across remote areas. The idea is that pigeons could be a reliable and low-energy way to transfer information in places with limited internet access, potentially creating a niche use case for blockchain technology in data delivery.
Top 3 coins of the day
Uniswap (UNI)
Key points:
At press time, UNI was trading at $10.64 reflecting a 3.87% correction in the last 24 hours.
The volume at which UNI was trading at had fallen by 62.92% during the same period.
What you should know - Since 15 May UNI token has rallied significantly, showcasing multiple higher highs and higher lows during its surge. However, after the 26 May, the price of UNI tested the $11.91 level and witnessed a correction. Interestingly, UNI retested the same resistance level, forming a double top. This pattern forms when a price reaches a high two separate times, separated by a small decline. It suggests buyers are losing strength, potentially leading to a price drop. At press time, UNI had fallen to $10.64 level. If bearish momentum persists, the price of UNI could decline further and reach the $9.310 level soon. Additionally, the CMF (Chailkin Money Flow) indicator also declined, implying there was a slow down of money flowing into the UNI token.
Mantle (MNT)
Key points:
MNT’s Open Interest surged by 23.38% as price grew.
Despite rising prices, bearish sentiment persisted as short positions increased.
What you should know - In the last 24 hours, the price of MNT rose by 9%, and at press time, it was trading at $1.04. The price has tested the $1.0892 price level twice in the recent past. If bullish momentum persists, MNT would be able to retest and weaken the $1.0892 level and may push past it. In doing so, it would be reversing the bearish trend seen by the price over the past few weeks. It is quite interesting to note that recently the leading indicator RSI went into the overbought territory, hinting at a potential correction in the future. However, at the time of writing, its value stood at the 67 mark.
Stacks (STX)
Key points:
At the time of writing, STX witnessed an uptick of 7.44% in the last 24 hours.
Positive sentiment around the token surged considerably.
What you should know - Despite the uptick in price, STX failed to break the bearish trend that its price exhibited over the last few weeks. At the time of writing, the altcoin was trading at $2.37. Primarily, its price has fluctuated between the $2.270 and $1.798 levels for most of the trading sessions in the recent past. If sellers continue to dominate the market structure in the long term, the price could retest the $1.708 level yet again, causing losses for bullish traders. At the time of this writing, the Awesome Oscillator significantly grew along with the price. When the AO rises, it means the short-term price movement is stronger than the long-term. Thus, hinting at the potential for prices to continue going up.
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