Bitcoin Price Regains Its Footing After Wild Weekend
Bitcoin’s price stabilized on Monday, as a sense of calm returned to the cryptocurrency market following a highly volatile weekend.
The bitcoin price rose 3.5% to $3,956 on Bitfinex, where it was trading near session highs. Aggregate data from CoinMarketCap show an average price of $3,915.14. The leading digital currency dropped by as much as 9% on Sunday mere hours after testing December highs north of $4,200.
Trade volumes touched a high near $11 billion on Sunday and have since moderated to around $9.6 billion, a level that is well above the historic average. In terms of exchange-based volume, BitMEX processed nearly $1.4 billion worth of BTC trades via derivatives contracts. That’s equivalent to nearly 12% of the daily volume. Spot markets accounted for the remainder.
Bitcoin has experienced a volume breakout over the past three weeks, as long-term holders continue to migrate capital onto virtual exchanges. This process may have begun as early as last summer, which was a period of unprecedented calm for digital assets.
At current values, bitcoin has a total market capitalization of $68.7 billion and accounts for 51.8% of the entire crypto market.
From a technical point of view, bitcoin continues to face strong resistance near the December high. A move beyond that barrier is needed if the bulls are to have any chance of negating the long-term downtrend. At nearly 14 months, bitcoin is in the longest bear market in its ten-year history. Read more: Bitcoin Price Update: BTC/USD Approaches Longest Bear Market in History.
The past 48 hours saw wild swings for cryptoassets, as traders booked profits following a successful pump of bitcoin and its altcoin peers. The combined market capitalization of all cryptocurrencies reached a high near $144 billion late Saturday before plunging back down toward $127 billion.
As a result of the pump-and-dump, Tether (USDT) witnessed its biggest volume surge on record. Nearly $12 billion worth of USDT was traded on virtual exchanges Sunday, equivalent to 29.6% of total trade volumes. The stablecoin overtook bitcoin as the most actively traded cryptocurrency but has since fallen back to second spot.
Bitcoin’s volatility index surged on Sunday, reaching its highest level in a month. The 30-day volatility tracker from bitvol.info jumped to 2.9% from 2.23% the previous session. A higher volatility reading implies bigger price variance over time.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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