Bitcoin (BTC) has increased by more than 30% since July 1, from $ 9,088 to $ 11,800. However, the volume of world-class cryptocurrency exchanges rose to an incredible US $ 334 billion.
A report by CryptoCompare published by the Bitcoin Futures Exchange BitMEX states:
In July, the size of the upper tier increased 42.1% to $ 334 billion, while the size of the lower tier decreased 38.1% to $ 224 billion. Top level exchanges now make up 60% of the total spot trading volume. ”
The figure of 334 billion US dollars does not take into account the so-called “lower level” exchanges that the researchers described.
The volume of first-class exchanges continues to grow
The futures market continues to grow as the spot market continues to be sluggish
According to the data, the cryptocurrency derivatives market is growing faster than the spot market. In July, the volume of derivatives increased by 13.2%, while the spot volume declined. The report stated:
The volume of derivatives rose 13.2% in July to $ 445 billion. Since then, the spot total volume has decreased by 0.5% to $ 639.1 billion. As a result, derivatives continued to gain market share, accounting for 41% of the market in July (up from 38% in June). ”
The trend shows the growing demand for cryptocurrency futures and options contracts, which are typically sought after by professional and full-time traders.
The data can be analyzed in two different ways. This could mean that the demand from traders for Bitcoin is generally increasing or that the market is reaching a frenzy. If the futures market becomes the main catalyst for the bitcoin market, it could increase the likelihood of a sharp spike in volatility.
Because futures contracts use leverage and tier exchanges provide leverage of up to 100 times, the likelihood of a prolonged squeeze increases if the spot market does not adequately complete the size of the futures contract.
For now, the researchers explain that the size of the spot market is increasing at the same time, albeit slower. The researchers found:
Spot volumes increased again towards the end of July in light of the current bullish trend. After updating the Exchange Benchmark Ranking in CryptoCompare in July, data shows that high-risk exchanges have generally been declining in volume as users begin to move to lower risk (higher level) exchanges. ”
Whether immediate volume and prevailing public awareness are high enough to trigger a Bitcoin price breakout above a significant $ 12,500 resistance level remains uncertain.
Bitcoin is growing in popularity
On August 14th, TradingView announced that Tesla was the most viewed asset in America on the platform. Just under a second was Bitcoin, which has gained 60% since January. TradingView said:
“Tesla stock is the most-watched commodity in America. Our data shows that Tesla was the most watched stock in 31 states as of July. Bitcoin has not been far away. Since the start of the year, Tesla’s stock price has nearly tripled. Bitcoin has now risen 60% since the beginning of the year. ”
While spot volume lags, futures volume and Bitcoin’s popularity with retailers appear to be increasing.
Always high hash rate
On August 16, the total hash rate of the Bitcoin blockchain officially reached a new all-time high of 129.07 million terhash per second.
The higher hash rate approaching the latter half in May indicates a stable mining industry and miners’ expectations of higher bitcoin prices in the future.
The coincidence of the general rise in the size of the cryptocurrency market, the popularity of Bitcoin among retailers, and the rapid increase in the retail rate could help sustain the current bullish trend in the price of bitcoin.