Weaker bitcoin trading volumes aren’t stopping its price from going up.

  • Bitcoin (BTC) trading around $9,444 as of 20:00 UTC (4 p.m. ET), gaining 2% over the previous 24 hours.
  • Bitcoin’s 24-hour range: $9,202-$9,474.
  • BTC above 10-day and 50-day moving average, a bullish signal for market technicians, trading volumes on Wednesday are higher than Tuesday.
btcjuly8
Bitcoin trading on Coinbase since July 6.
Source: TradingView

“Bitcoin became oversold from a short-term perspective last week for the first time since mid-March,” said Katie Stockton, an analyst at Fairlead Strategies. “This seems to be giving way to an uptick in short-term momentum, which has been weak since late May,” she added. 

The jump past $9,400 Wednesday came during a time of lower spot trading activity. Volumes have dipped since May on spot exchanges like Coinbase after a month of excitement due to bitcoin’s halving, its drop in programmed new supply. The average daily volume over the past three months on Coinbase, for example, is $133 million. In July so far, the daily average has been just $68 million, a 48% drop. 

skew_btc_spot__aggregated_daily_volumes-13
Trading on spot exchange Coinbase the past three months.
Source: Skew

Lower volumes are affecting the over-the-counter market for larger trades as well, said Henrik Kugelberg, a Sweden-based block trader who focuses primarily on bitcoin. “It’s been a very stagnant market for a while now, both for me and my sources,” he said. 

Read More: With Trading Volumes Slumping, Are There Too Many Crypto Exchanges?

Bitcoin surpassing the $9,400 level Wednesday doesn’t have Josh Rager convinced a bull run is on the way. Rager, a trader and adviser for crypto brokerage app LVL, wants to see a price jump higher before changing his sentiment. “Until we close above $9,700, I’m not going to be overly bullish in the short term,” he told CoinDesk. 

btc2020jul8
Bitcoin’s price in 2020.
Source: TradingView

Still, it’s important to put bitcoin’s weak volume and potential price uncertainty in perspective, as it has appreciated 30% in 2020, noted Karl Samsen, director of strategy for crypto merchant services firm Global Digital Assets. “I think we’ve seen glimmers of BTC’s macro use case as a hedge but we’re still waiting for the big moment,” he said. 

Read More: Nearly $60M in Bitcoin Moved to Ethereum in June

Balancer making moves

The second-largest cryptocurrency by market capitalization, ether (ETH), was up Wednesday, trading around $248 and climbing 4% in 24 hours as of 20:00 UTC (4:00 p.m. ET). 

Singapore-based quantitative trading firm QCP Capital, in a note to investors Wednesday, said the crypto market’s “alt-season [is] heating up and the DeFi train [is] rolling on.” In 2019, total decentralized exchange, or DEX, volume was $1 billion. DEXs are already over $5 billion so far in 2020, according to data from aggregator Dune Analytics. The leading DEXs are Uniswap, Curve and Balancer, with total DEX volume at $58 million over the most recent 24 hours. 

marketsharejuly8
Decentralized Exchange market share.
Source: Dune Analytics

Total value locked in Balancer is now at $159 million according to DeFi Pulse, making it the highest ranked for a DEX. Balancer’s system locks the crypto value in a smart contract as liquidity for traders to swap Ethereum-based tokens on the platform. It balances the types of tokens based on trader demand, hence the name Balancer.  

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Dollar value of cryptocurrency locked in Balancer.
Source: DeFi Pulse

The value locked generates a return based on Balancer’s DEX trading fees, and keeps growing despite a $500,000 exploit hack that occurred on the platform in June. “Balancer has really shot off, even with the hack,” said Andrew Tu of Efficient Frontier, a crypto quantitative trading firm. 

Read More: Exchange Predicts $40 Price for COMP Ahead of Governance Token Deluge

Other markets

Digital assets on the CoinDesk 20 are flashing green Wednesday. Notable winners as of 20:00 UTC (4:00 p.m. ET): 

Read More: Dogecoin Volumes Spike 1,900% in 2 Days Amid Viral TikTok Videos

Equities:

Commodities:

  • Oil is up 1%. Price per barrel of West Texas Intermediate crude:  $40.85
  • Gold surpassed $1,800 Wednesday, up 0.79% at $1,809 per ounce

Treasurys:

  • U.S. Treasury bonds were all in the green Wednesday. Yields, which move in the opposite direction as price, were up most on the 10-year, in the green 2.6%.

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