According to the technical director of the international cryptoexchange CEX.IO Dmitry Volkov, the trading volumes on the cryptoexchange in July increased by 2 times compared to June 2020. Important reasons for the growth are the increased interest of market participants in ETH, in particular due to DeFi and the imminent release of Ethereum 2.0. Now ETH is a growth driver, it pulls up other cryptocurrencies, in particular BTC..
Starting around July 20th, trading volumes on CEX.IO have increased several times after a relatively long lull, reaching the levels of May 2020.
Trading volumes of all cryptocurrency pairs on CEX.IO
Usually, the share of the BTC / USD pair in the total exchange volume is about 40%, and over the past few days, the share of BTC / USD was only about 20%. The rest of the volume was provided by other pairs, in particular, volumes in pairs with ETH increased several times. For the week of July 20-26, the average daily ETH turnover on the exchange was 3 times higher than the average daily ETH turnover in June.
Trading volume of cryptocurrency pairs with ETH. Y-axis – how much more ETH turnover on that day, than the average daily ETH turnover for June 2020. Peak – 26 July 430%.
It is safe to say that now it is ETH that is the driver of the cryptocurrency market growth..
On average, the balance of BTC and ETH deposits and withdrawals on CEX.IO has been preserved. Sometimes there is a noticeable bias towards BTC input and ETH withdrawal, which indicates either an increased demand for buying ETH, or active arbitrage strategies of traders.
Prospects for further growth of the bitcoin rate
Bitcoin reached the $ 12,000 mark for the first time since the beginning of the year, but could not resist and rolled back. This movement of the main cryptocurrency was quite predictable. If you follow the charts of the dynamics of the coin, you can see that the bullish trend was formed 50 days ago. The cryptocurrency was gradually striving upward, breaking one level after another.
In addition, other factors contributed to the growth of bitcoin. The main one is the rapid rise in gold prices. And although many experts believe that gold and BTC are not correlated, this is not the case. No wonder they call him «digital gold». As soon as the cost of a troy ounce of gold surpassed the $ 1,900 mark, the price of bitcoin went up sharply..
The strengthening of the MTC exchange rate was also facilitated by the increase in the emission of the dollar. More recently, the US government announced that it is preparing a new bill aimed at overcoming the consequences of the coronavirus pandemic, which includes a number of anti-crisis measures, such as add. dollar issue, issue of support payments in the amount of $ 1200 per person.
In fact, the passage of the bill will result in trillions of more cheap dollars being released onto the market. Issuing checks for this amount will encourage buyers of digital currencies. Last time, in April-May of this year, the level of purchase of cryptocurrencies in the amount of $ 1200 increased sharply. This means that Americans are increasingly thinking about alternative sources of investment, and one of them is cryptocurrencies..
Since the beginning of 2020, the price has tested the resistance around the $ 10,500 level several times..