Market Wrap: Bitcoin Traders Expect Big Move as Volatility Plummets

Tuesday 30 June 2020, 7:13 AM AEST - 3 months ago

jun-29

Bitcoin opened the week still stuck in a price range just above $9,000 Monday, moving less than 0.2% from Fridays close as of 20:00 UTC (4 p.m. ET), according to Bitstamp.

At 00:00 UTC on Monday (8:00 p.m. Sunday ET), bitcoin (BTC) was changing hands around $9,115 on spot exchanges such as Bitstamp. Despite a brief dip below $9,800 on Saturday afternoon, bitcoin did not trade above $9,200 or below $9,000 on Monday.

Ether (ETH), the second-largest cryptocurrency by market capitalization, climbed less than 1% from its daily open Monday and traded around $226 as of 20:00 UTC (4 p.m. ET).

jun-29Bitcoin trading on Bitstamp since June 24

Exchange inflows from bitcoin miners are pouring in as bitcoin continues to trade in the low $9,000s. A seven-day moving average shows inflows from miners to exchanges have reached their highest levels all year. This might be a bearish signal, according to some analysts.

glassnode-studio_bitcoin-miners-to-exchanges-7-d-moving-average-2Exchange inflows from bitcoin miners since January

Miners arent really speculators with the bitcoins held on their balance as inventory, said Austin Storms, founder of mining mobile infrastructure company BearBox Theyll readily sell it for cash to reduce risk or expand operations, he added. But to infer that miners sending coins to exchanges is a bearish market signal, according to Storms, is a big reach.

Miners make up a small percentage of daily sell pressure, he explained. Using this data to justify a bearish market thesis is exploratory analysis that wants to be confirmatory, said Storms. People are bored with the $9,100-$9,400 range and are looking for any reason we might depart from it soon.

Bitcoins volatility is plummeting as it continues to trade in a tight price range. According to data from Skew, the

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