Trading volume declined from $259 billion on June 25th to a low of less than $233 billion on Friday, June 29th. On Friday night, the market bounced back to $259 billion in total market capitalization, according to CoinMarketCap. This is good news for HODLers, though the true test will be whether it breaks through the resistance at around $290 billion and $350 billion. If that happens, then we may see the prices of Bitcoin and other cryptocurrencies go up with the increases in trading volume.
We are not financial advisors, so be sure to check with a professional if you’re thinking about making a major investment. However the weekend bounce is some much needed good news, and it was reflected in Bitcoin and other prices. Earlier in the week, Bitcoin fell to a low of just over $5,800 per coin. On June 30th, it’s been testing $6,500. If it breaks through then it could very well break the $7,500 mark again.
There has been talk about market manipulation lately, particularly in moving funds in and out of Tether. While there are still many more facts that need to come out, there is no denying that we’ve seen price action around the time that futures contracts come to expiration. We reported on this in January, where institutional investors could buy large quantities of Bitcoin, short it in the futures market, flood the market with their coins to drive prices down, and then buy back those same coins, and more, at a discount. The buy-back triggers price increases and they can sell high again.
Like clockwork, CME Bitcoin futures settled on Friday June 29th, and the bounce back happened the very next day. The most interesting thing is that futures are the most regulated part of the digital currency market, and yet they appear to be the primary driver for manipulation.
Whether the cause for the price increase is manipulation, or a natural bounce from a new support level at just under $6,000, it’s clear that the price action is creating a sense of relief for those people who chose to hold onto their crypto investments. Bitcoin prices increased by over 8% in the last 24 hours, while Ethereum jumped over 9% and Ripple recovered by over 7%. The rest of the market is up, too, with some huge moves in the top 100 by market capitalization. Some of the big winners include Bitcoin Cash at 12%, Cardano at almost 16%, NEM at over 12%, Bytecoin at 26%, and 0x at 34%.
If you’ve been buying the blood, then you may do very well. For example, Ethereum is at $450 today, and it’s not unreasonable for it to move back towards its high of over $600 earlier in June.
Some people are calling this a corrective rally. If that is the case, and Bitcoin remains above around $6,500 then it may gain enough momentum to drive the entire market even higher. It’s probably too early to suggest that we’re back in another bull cycle, and we’ll need to watch the holiday traffic as well as any trends with futures contracts, to predict whether there will be another drop and bounce at the end of July.