After 3 Months In The Red, Why Bitcoin Is The Crypto Market’s Best Performer
July 20 2021 - 6:00PM
NEWSBTC
Bitcoin broke below its support zones and trades around its yearly
open after another massive selloff. At the time of writing, the
first cryptocurrency by market cap trades at $29,605 with an 11.2%
loss in the weekly chart. The crypto market has followed Bitcoin,
except for a handful of coins, and the top ten sit on more
pronounced losses. For three consecutive months, BTC and major
cryptocurrencies have been in the red. May and June saw two
capitulation events that pushed BTC’s price below its current
levels. Hence why so many investors and traders expect further
downside to consolidating a third and possibly final capitulation.
The weeks leading to the most recent crash saw Ethereum (ETH)
outperforming Bitcoin (BTC). The second cryptocurrency by market
cap rose from around $1,600 to $2,390 before retracing to current
levels. However, a recent report by Arcane Research concluded that
BTC remains the best performer in the crypto market. In
consequence, the BTC Dominance has increased as altcoins are pushed
further down their support levels. As seen below, the Bitcoin
Dominance stood at 46.92% by the time the report was published with
ETH following with a 16.96%. USDT (5.12%), BNB (3.72%), ADA (2.86%)
taking on XRP (2.05%) and DOGE (1.82%) positions. The chart shows
that Bitcoin retraces around 11.2% since the beginning of July
2021. Cryptocurrencies with large market caps saw the less severe
drops with only 18.5% closely followed by small-cap tokens with
19.6%. Mid-cap cryptocurrencies took the biggest fall with a 22.4%
drop. Arcane Research said: (…) All indexes have now seen
considerable negative monthly returns three months in a row. In
May, all indexes saw negative returns of around 30%. In June, the
monthly returns ranged between -5% for bitcoin
to -28% for the Small Cap
Index. This month, we’re currently on the path towards another
month of substantial negative returns for the broad crypto market.
Bitcoin Derivatives Experience Rise In Open Interest Arcane
Research also registered a decline in volatility for the 7-day
chart. This metric stood at 1.68%. The last time Bitcoin experience
such low volatility was in October 2020. Conversely, the BTC-based
derivatives have seen an increase in Open Interest (OI). The
Bitcoin futures have been playing a major role in the market’s
dynamics. The first capitulation event was preceded by a high OI
with a spike in liquidations when BTC turn to the downside. This
metric was on a decline but is moving towards April and May highs,
Arcane Research said, with 395,000 BTC. This represents a 95,000
BTC increase since OI touched a bottom at the end of May. In the
coming weeks, the market could see further movement due to the
recovery in the Bitcoin hashrate and the implementation of
Ethereum’s EIP-1559 with the London Hardfork.
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