The price of Bitcoin (BTC) rose from $ 9,088 to $ 11,800 since July 1st by more than 30%. This increased the volume on the major exchanges to an unbelievable 334 billion US dollars.
A report from CryptoCompare Posted by the Bitcoin futures exchange BitMEX He says:
“In July, the top tier volume increased 42.1% to $ 334 billion, while the lower tier volume decreased 38.1% to $ 224 billion. Top tier exchanges now make up 60% of the total spot volume. “
The figure of 334 billion US dollars does not take into account the so-called “lower tier” exchangesas the researchers describe it.
The volume of the first-class exchanges continues to grow. Source: BitMEX, CryptoCompare
The derivatives market continues to grow while the spot market is stagnating
According to data from The market for crypto derivatives is growing faster than the spot market. In July, the derivatives volume increased by 13.2%, while the spot volume decreased. The report says:
“The volume of derivatives rose 13.2% to USD 445 billion in July. In the meantime, the total volume of spot products decreased by 0.5% to USD 639.1 billion. As a result, derivatives continued to gain market share and represented 41% of the Market in July (up from 38% in June) “.
This trend shows the growing demand for futures and options contracts in cryptocurrencies.often sought after by professional and full-time dealers.
The data could be analyzed in two different ways. That could mean The demand for Bitcoin from traders is generally increasing or what The market reaches saturated territory. If the futures market becomes the main catalyst for the bitcoin market, it can increase the likelihood of a sharp spike in volatility.
Since futures contracts are leveraged and top-tier exchanges offer up to 100x leverage, The chances of a longer adjustment could increase if the spot market does not sufficiently supplement the volume of the futures.
For the time being, the researchers stated that the volume of the spot market is increasing in parallel, albeit more slowly. The researchers found:
“Spot volume bounced back in late July on the current uptrend in the market. After the CryptoCompare benchmark exchange rankings were updated in July, the data shows that the volume of riskier exchanges in general has decreased – as users start switching to lower-risk ones.”
It remains uncertain whether the volume of the spot market and the general awareness of the population are high enough to drive Bitcoin price declines above a high resistance level of $ 12,500.
Bitcoin weekly chart. Source: TradingView.com
Bitcoin’s popularity is growing
August 14th TradingView revealed that Tesla was the most viewed asset in America on the platform. In second place was Bitcoin, which has gained 60% since January. TradingView stated:
“Tesla shares are the most-viewed commodity in America. Our data shows that Tesla was the most-viewed stock in 31 states in July. Bitcoin was not far behind. Tesla shares have fallen almost since the start of the year. They have tripled in price Bitcoin up 60% this year. “
While spot sales volume is lagging behind, Bitcoin futures volume and popularity with retailers appear to be increasing.
The highest hash rate ever
August 16 The total hash rate of the Bitcoin blockchain network officially hit a new all-time high of 129.07 million terahashes per second.
A rising hash rate so close to the last halving in May indicates a stable mining industry and miners’ expectations that Bitcoin prices will be higher in the future.
The convergence of a general increase in the volume of the cryptocurrency market, the popularity of bitcoin among retailers, and the rapid rise in the hash rate could contribute to the continuation of the current upward trend in Bitcoin price.