Bitcoin (BTC) is seeing a surge in price, signaling a potentially heated digital assets market. Matteo Greco, a Research Analyst at Fineqia International, has shared insights on the latest developments in the crypto space.
Greco noted that BTC closed the previous week at around $28,000, a 6.7% increase compared to the previous week’s closing value of $26,250. The momentum was particularly strong on Thursday when the price surged to $27,000. After consolidating around this level for two days, BTC embarked on an upward trend, ending the week at $28,000.
This increase in September marks the first September price rise for BTC since 2016, bringing relief to the digital asset market capitalization after two consecutive negative months in July and August.
BTC is leading the charge in this upward trajectory, as indicated by its dominance metric, which rose to 50.4% from 49.9% at the end of the previous week. This showcases BTC’s strength compared to the broader digital asset market.
Despite the positive price movements, trading volumes remain subdued. Daily trading volumes on centralized exchanges have shown limited activity, with a cumulative volume of around $10.5 billion over the past week, similar to the previous week’s figures. September’s trading volumes on centralized exchanges amounted to approximately $312 billion, a 26% decline from August’s $423 billion.
Low volumes are typically associated with reduced market volatility. BTC’s 30-day volatility has declined to around 23%, the third-lowest level recorded since 2017.
Greco believes that the next two quarters hold potential catalysts for the digital asset market, reigniting interest and trading activity. The final deadline for most Bitcoin Spot ETF approval or rejection is set for mid-March, followed by the scheduled Bitcoin halving in mid-April 2024.
In conclusion, the recent surge in BTC’s price suggests a heating up of the digital asset market. While trading volumes remain subdued, upcoming events could reignite interest and trading activity in the digital asset space.
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