Cryptocurrencies Still Recovering Strong After Monday Rally; BitMEX Sees 24/7 Trading as the Future
Cryptocurrency prices maintained their firm uptrend on Tuesday, a sign that the latest rally attempt has further room to grow. Rising volumes and steady gains in the last hour of trading point to further momentum up ahead.
The cryptocurrency market capitalization is currently valued at $115.4 billion, according to latest available data. In doing so, it surpassed Monday’s peak and put crypto values on track for a bigger short-term recovery. Asset values bottomed near $100 billion on Saturday, the lowest in 16 months.
Trading volumes have skyrocketed in the last 24 hours, as waves of buying flooded the market. Turnover is up 47% since Monday, with the top-ten exchanges reporting a volume increase of 43% to 102%. The top-four exchanges – Binance, OKEx, Huobi and DigiFinex – each processed more than $500 million in trades.
In terms of individual currency, bitcoin was up 1.4% in the last hour to trade at $3,567. The leading digital currency rose double-digits on Monday, the anniversary of its last record high, which served as a catalyst for the broader market.
XRP gained 1.7% to $0.3346. In doing so, it extended its 24-hour advance to 10.4%.
Ethereum is up 1.5% on the hour to trade at $95.45. EOS rose another 2.9% to $2.52 and has now gained 17.4% over the past 24 hours.
With the exception of Tether (USDT), a dollar-backed stablecoin, all cryptocurrencies in the top-25 by market cap had reported gains Tuesday. USDT was stable around $1.01.
The latest recovery attempt looks convincing relative to price action in recent weeks. However, the bulls aren’t out of the woods yet. Depressed market sentiment could trigger fresh waves of profit-taking before the week is over.
BitMEX and the Future of Trading
Crypto derivatives platform BitMEX believes cryptocurrencies have set a precedent for how other markets will behave in the future. In a recent episode of the Unchained podcast with Laura Shin, BitMEX CEO and co-founder Arthur Hayes said he expects 24/7 markets will become the new norm in the future.
At the same time, Hayes indicated that the “jury is still out” on whether cryptocurrencies are a new asset class or just a “blend” of financial instruments. At the very least, bitcoin and cryptocurrencies could become a “new way of raising capital and sending value around the world.”
BitMEX has been at the center of the bitcoin selling spree of the last six weeks. As bitcoin printed successive lows, volumes on the exchange skyrocketed. At its highest point, BitMEX was processing more than a third of bitcoin’s daily trade volumes on virtual currency exchanges. Clearly traders were shorting BTC.
According to CCN, BitMEX processed nearly $1 trillion in volume over the past year.
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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