As Bitcoin pokes its head over the $10,000 mark, analysts are looking at big volume on some exchanges.
Large purchases seem to be supporting the slightly higher values, although some note that Bitcoin markets have not moved as much as one might expect. As for the halving of the block miner reward in mid-May, that didn’t move the needle so much either, although bullish investors, again, contend that longer term impact is likely.
Today, though, there is an uptrend that’s being noticed in tech corners.
“Bitcoin hitting $10,000 has been frantic activity on exchanges,” writes William Suberg at Cointelegraph. “Investors are buying the largest cryptocurrency at five figures, not selling. According to data from monitoring resource Coin Metrics on June 2, one 10-minute period alone saw trading volume hit a giant 3,500 BTC.”
There’s also unusual exchange activity on Bitfinex, with Coin Metrics following the changes and providing this disclaimer:
“Distribution of U.S. dollar quoted spot market volume follows a power law where roughly 90 percent of the volume is concentrated in the top four exchanges in our sample: Coinbase, Bitstamp, Bitfinex, and Kraken. The fragmented nature of trading volume and liquidity in this space indicates that institutions should expect to go through a process of onboarding with multiple exchanges to access the full spectrum of trading activity.”
Exchange discrepancies are not unheard of, but this data could be vital to deciphering where Bitcoin is going now. BTC proponents have insisted that we’re looking at values like $100,000 per coin by the end of 2022. Others suggest that large increases will signal that coin is overbought in the short term.
One way to gauge potential is to look at options trading for the cryptocurrency. These contracts available at CME Group and elsewhere can be good barometers.
“Most short-term bullish projections of Bitcoin revolve around the assumption that Bitcoin surges above $10,500 and breaks out of its existing trend,” wrote Cointelegraph’s Joseph Young yesterday. “If it fails to see a price spike above the $10,000–$10,500 range, Theta Seek said the alternative is a 20% fall following a cascade of liquidations in the options and futures market.”