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Bitcoin: new trading volume record today

Today the crypto industry is marked by new trading volume records on Bitcoin.

Even if with lower intensity than the previous days, today continues the positive wake that sees more than 70% of the first 100 crypto assets in green territory

coin360 20200729
Source: COIN360.com

Scrolling through the list of the big names, among the top 20 there are only two red signs, Crypto.com (CRO) and VeChain (VET) that lose 0.8%. 

The day sees XRP as the best rise, scoring a jump of 8% and bringing back the smile to investors who see again 24 cents share, a level that Ripple had not recorded since early March, despite the positive movement affecting Ripple that since the lows at the end of June has gained 45%. 

XRP 20200729
XRP chart by Tradingview

The same percentage separates it from the annual highs of February 16th, when the price had risen to 34 cents. 

The very same February levels that have been broken and have put fuel on the fire for Bitcoin, as well as for Ethereum, which in recent days has gone beyond these levels. Bitcoin and Ethereum are both testing the levels of the last summer 2019.

Besides XRP that goes up by 8%, among the best rises of the first 20 there is Eos (EOS) that moves close to 10%, followed by Bitcoin Cash (BCH) at +7.5%. The best rise of the day is Nexo (NEXO) which rises by 10% like EOS. Next comes 0x (0X) which gains 9% and Elrond (ERD) which rises by 8%.

On the opposite side, Ampleforth (AMPL) is the most marked drop of the day which goes down by 13%. 

Kava goes up 3%, benefiting from the launch of futures on Binance with a 50x leverage. 

The dollar loses value

What is happening in the international sphere is very relevant, with the dollar depreciating by more than 10% since March. In the last few hours, the exchange rate with the euro has returned to around 1.17 dollars, levels of September 2018, a strong leap upwards that shows what is happening with economic policies. 

The new stimulus plan discussed in recent days at the legislative level will probably see the light in the coming weeks. 

This depreciates the US currency, which continues to lose ground. This favours US exports but jeopardizes the rest of the world and the assets that see the dollar as their main trading pair. 

Yesterday Bitcoin saw prices go beyond the $11,300 threshold, levels that BTC had not recorded since August 2019. However, when we look at the price of Bitcoin traded in euros, prices are battling with the threshold of 9,500 euros, the highest of February. Yesterday’s break pushed prices for a few minutes to touch the 10,000 euros. This is a crucial level. 

Traders have to consider the strength of the dollar and this has a particular impact on the performance of the euro. 

BTC EUR 20200729

Both BTCUSD and BTCEUR recorded increases of more than 20%, but while the graph of BTC quoted in euro is testing the high of mid-February at 9,500 euros, the exchange rate in USD is appreciated by more than 17% with prices rising to see the August 2019 high of 11,300 dollars.

Bitcoin: record trades on spot and derivatives

After the highs recorded on Monday, new records were also recorded yesterday on trade in derivatives with Bitcoin

Bakkt has set a new all-time record with over 132 million traded, updating the previous level by over $10 million. Yesterday, Bakkt’s platform recorded the highest open interest, with over 15 million contracts held over the day, the highest level ever. 

On the leading derivatives platform Derebit, the open interest and option volumes on Bitcoin yesterday registered for the first time a record daily trading with an open interest exceeding $1.6 billion on options. 

The aggregate volume of all platforms, including the CME, comes to just under $2 billion, a threshold that breaks the previous record of June 25th.

The strong volumes show a particularly intense period. Yesterday, the spot market on Bitcoin, with volumes in excess of $2.8 billion, reached its 9th consecutive day with trades above $1 billion. It is a streak that has not been recorded since last February. 

This mix of euphoria again brings the Fear and Greed index to 76 points, the highest peak since July 2018.

The market cap remains stable at $325 billion, a level not seen since late June 2019.

The dominance of Bitcoin remains above 62% whereas the dominance of Ethereum takes a decisive step backwards, which after almost reaching 12% returns to 11%. 

Thanks to the strong increases of XRP, the dominance of Ripple gains a slice of market share and rises to 3.3%, levels that had not been recorded since last May. 

The strong movement also begins to move the volatility of Bitcoin, with the price that in the last week has gained over 17%. Even better Ethereum that registers a +30% from last Wednesday’s levels. 

This makes the volatility jump for Bitcoin. Daily volatility on a monthly basis rises 40% and reaches 1.4 after testing the lowest level in the last 4 years at 1%.

BTC USD 20200729
Bitcoin chart by Tradingview

Bitcoin (BTC)

The sharp leap upwards pushes prices above $11,300, where profit-taking takes place pushing BTC’s value just below the $11,000 threshold. This is the technical and psychological threshold that sees the price of Bitcoin fluctuate in recent hours.

With regard to repositioning by professional traders on options, area 11,170 is the first threshold to break down to be set as a hedge for an upcoming rise. Downwards, the $8,900 area continues to remain queen; the first protection positions begin to emerge between $9,200 and $9,450. 

From tomorrow the picture should clear up also thanks to the huge flow of trades on options that is being recorded in these hours with absolute historical records on derivatives on Bitcoin.

ETH 20200729
Ethereum chart by Tradingview

Ethereum (ETH)

After pushing $333 on Monday, one step away from the record of the last two years set in June 2019, Ethereum lives a pause for reflection. Prices are trying to find a floor to consolidate the rise that in the last two weeks has seen ETH prices gain over 40%.

For Ethereum, traders on options identify area 325-340 dollars the first levels where to place the hedges upwards. 

The put positions to hedge the declines dominate with a call/put ratio of 1:4. Hedging positions between $215 and $230 remain strong, levels well away (40%) from the current ones. 

Consequently, even for Ethereum it will be necessary to wait until today to better understand the positioning of derivatives traders. 


Federico Izzi
Federico Izzi
Financial analyst and independent #trader – S.I.A.T. & Assob.it partner. He operates actively on stock and derivatives markets (futures and options) since 1997. A precursor of cyclic-volumetric analysis he is known for having identified the most important upward and downward movements in the financial markets of recent years. He participates annually as a speaker at the ITForum in Rimini since the 2010 edition and InvestingRoma and Napoli since the first edition of 2015. He is a guest and market expert on the "Trading Room" and "Market Driver" broadcasts of Class CNBC, Borsa Diretta.tv and on the evening news of Traderlink. Since July 2017 he is a permanent guest on LeFonti.TV, the only weekly national space dedicated to cryptocurrencies alongside the most important international experts in the field. He was interviewed as a cryptocurrency expert for Forbes Italia, Panorama, StartupItalia and DonnaModerna. He was recognized as the first Italian technical analyst to have published the first secular cyclic analysis on Bitcoin. Periodically publishes articles on ITForum News, Sole24Ore, MILANOFINANZA, TrendOnLine and Wall Street Italy. Federico Izzi is... "Zio Romolo".