Bitcoin price goes above $8,000, and the Ethereum price gets over $200 mark
Bitcoin price rises above $8,000
On Wednesday, Bitcoin price exceeded $8,100 and continued to grow, having added 6.1% over the day.
All in all, in April the first cryptocurrency went up by 25%. BTC market capitalization went up to $129 billion, and the dominance index is in the range of 63–64% in recent months.
Ethereum also broke an important psychological mark of $200. All digital currencies from the TOP-20 added in price over 24 hours. Currencies that grew in price the most are TRON (+ 8.95%), Monero (+ 7.66%) and Litecoin (+ 6.20%). Around May 13, the block reward will be halved in the Bitcoin network, this event takes place every four years.
The trading volume of crypto derivatives increased 3 times
In the first quarter, the turnover of crypto derivatives increased by 314% to $2.1 trillion compared with the average figure for 2019.
According to TokenInsight, the average daily volume exceeded $23.3 billion, which is 274% higher than last year. At the same time, the correlation between derivatives and the spot market decreased to 0.31 — in Q4 of 2019, it was 0.76.
Futures on BTC, ETH and EOS account for 90% of the trading turnover. The options market is still under development and lags far behind futures contracts, according to a TokenInsight report. According to analysts, due to the coronavirus pandemic and the collapse in oil prices, cash has become the most popular asset, however, the volume of trading in cryptocurrency derivatives has been steadily growing.
Bitcoin enters “hope zone”
The Bitcoin price has entered a “hope zone”, experts at the Glassnode say. Previously, it signalled the start of a long-term bull market.
“With the halving approaching, can BTC maintain this momentum?” analysts ask.
Glassnode’s conclusion is based on their own STH-NUPL metric — the net unrealized gains of short-term investors. It is calculated based on unspent transaction outputs (UTXO) under 155 days. In mid-March, the indicator fell to record low levels that were observed at the beginning of 2015. Now the figure has returned to the “hope zone” due to the increase in BTC prices above $8,000.
