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Bitcoin underperforming the rest of the market in August
The crypto market saw further downside last week, and we are about to experience yet another month of double-digit negative returns across all indexes, with a slight underperformance of BTC vs. altcoins.Preview
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Market sentiment stabilized in fearful territory
The market sentiment has stayed fairly stable over the past week, even with the latest drop below $20,000. The Fear and Greed Index is now at 27, down from 28 last week, and still in the “Fear” territory. It’s clear that investors are more comfortable with the low $20k price level for bitcoin, as we were deep in the “Extreme Fear” area last time bitcoin touched prices below $20k back in June.Preview
Bitcoin volume sits near yearly lows from April, when excluding Binance
Binance continues to dominate the spot volume following the fee removal in BTC pairs. Over the last seven days, we saw spot volumes averaging at $8bn, far higher than the levels maintained throughout the first half of 2022. Still, when excluding the Binance volume, we see that trading volumes elsewhere reflect the idle spot market activity experienced previously this year. The real volume, excluding Binance activity, better reflects the overall activity in the market, as Binance’s fee removal has made high volume trading strategies economically feasible, likely leading to growing inorganic trading volume on the platform.Preview
Volatility burst last week
The 7-day volatility hit levels not seen since late June last week, as the bitcoin price started dropping lower again. After peaking above 4%, the 7-day volatility dropped a little again this week and is now below 3%. The increased volatility has in general been a result of more movements in the stock market as the fear increased again before the weekend. After seeing bitcoin volatility at unusual low levels, we’re now back to more average levels.Preview