Bitcoin blockchain completes 900 million transactions, market moves in a narrow range
Bitcoin (BTC) has traded flat in the past 24 hours as it struggles to find support near the $26,000 mark. The cryptocurrency has been trading in a very narrow range of less than 2 per cent. This lack of movement has resulted in the Crypto Fear and Greed Index falling by 2 points towards the fear side of the meter, indicating potential volatility ahead in the market.
Shubham Hudda, Senior Manager at CoinSwitch Markets Desk, highlighted an important milestone for the Bitcoin blockchain. The total number of transactions on the blockchain has surpassed 900 million transactions, further emphasizing the growing adoption and usage of Bitcoin. However, it is noteworthy that Bitcoin volumes on centralized exchanges have hit a 5-year low, similar to what was observed in September 2018 when Bitcoin was nearing the end of its bear cycle.
According to CoinDCX Research Team, unless Bitcoin manages to surpass the end-of-August high at $28,000, the most likely direction for its price remains sideways to down. Any drop below $25,000 could have significant implications for the cryptocurrency. CoinDCX also pointed out a potential source of volatility in the coming days. This Friday, a substantial number of BTC and ETH options contracts are set to expire on Deribit, which could increase volatility in the prices of these cryptocurrencies.
Furthermore, Bitcoin trading volume on crypto exchanges has reached a 6-year low, as noted by Sudeep Saxena, Co-Founder of Coin Gabbar. This decrease in trading volume is attributed to investors’ concerns about the surge in demand for the US dollar. However, it is important to note that these concerns are not necessarily interconnected with the performance of Bitcoin and other cryptocurrencies.
The recent consolidation of Bitcoin’s price above the $26,100 level can be attributed to the surge in the US 10-year Treasury yield to 4.55 per cent. Edul Patel, CEO and Co-Founder of Mudrex, stated that this sharp rise in interest rates has had a similar impact on the equity markets.
Crypto traders are also awaiting Jerome Powell’s upcoming speech on Thursday, as mentioned by Shivam Thakral, CEO of BuyUcoin. Powell’s speech is expected to provide clarity on future rate hikes, which will have implications for borrowing costs and inflation.
In other news, Circle, the world’s second-largest stablecoin issuer, has launched its EURC stablecoin backed by Euro on the Stellar blockchain. This development expands the options for issuing stablecoins beyond Ethereum and Avalanche.
In terms of market movement, Bitcoin’s price remained relatively stable in the last 24 hours, trading above the $26,000 support zone. Ethereum made slight gains but failed to cross the $1,600 threshold. Rajagopal Menon, VP at WazirX, credited Microstrategy’s latest disclosure on Bitcoin accumulation for infusing some positive sentiment in the market. Other cryptocurrencies such as BNB, XRP, Dogecoin, and Cardano traded in a close range. However, Solana and Toncoin experienced declines of over 2.34 per cent and 3.63 per cent, respectively.
Overall, the crypto market is experiencing a period of consolidation and uncertainty. Traders and investors are closely monitoring various factors such as Bitcoin’s price movements, trading volumes, upcoming events, and macroeconomic indicators to make informed decisions in this dynamic market.
