Recently, bitcoin has been giving significant bearish signals - the price cannot firmly settle above the $ 8,000 level. Despite this, recently launched BTC futures on the Binance site showed record trading volumes this week.
In the current period, several negative metrics are noted on the market, under the influence of which the main cryptocurrency is traded.
EToro's chief market analyst Mati Greenspan, who is bullish on Bitcoin, believes that the current lull in BTC trading is exacerbated by low trading volumes on exchanges, the sluggish interest of institutional investors through other futures contracts, and a decrease in activity on P2P transactions.
The glass is half full
In his analysis of the current state of bitcoin, Greenspan also notes that the hashrate is already experiencing a one-year rally, and this year the difficulty of mining bitcoins is barely reduced.
As a rule, a high hash rate is one of the signs of a healthy network, and as for the financial side of the market, in fact, everything does not look so sad. The analyst analyzed the indicators on other platforms offering futures trading, and found that things are not going well on Bakkt and CME, and Binance stands out against them, which is confirmed by another cryptocurrency analyst Skew.
On Tuesday, Binance recorded a daily futures trading volume of more than $ 700 million, which was a new daily record. This is a relatively new platform, launched a little more than a month ago, but this did not prevent it from becoming the third largest trading platform after Huobi and BitMEX.
For comparison: another new Bakkt platform, on the same day, recorded a trade turnover of 10 bitcoins.
The general situation around Bitcoin and many of its competitors indicates signs of a downtrend, but there are also glimmers of optimism in this grim picture. The hashrate in the blockchain is constantly growing, which indicates the increased interest of miners in anticipation of rewards on the occasion of the upcoming halving.
Thus, Greenspan believes that "Bitcoin does not die, but simply took a break."
The analyst admits the deterioration of sentiment in the digital currency market as a whole. But it also recalls that Bitcoin is one of the most successful assets this year. After high activity, the stabilization period looks quite appropriate, the expert added.
What do you think of the weak metric of bitcoin? Do you think this is just a period of consolidation or is there a reason for concern? Can interest in BTC futures support the growth of the cryptocurrency itself? Share your opinion in the comments.