Bitcoin’s price remains flat, with volume dying despite the stablecoin supply explosion in 2020. It just took four months for the stablecoin supply to double to reach 12 billion while it took five years to reach the initial 6 billion.
In the past few weeks, bitcoin’s correlation with the S&P 500 is also surging, and it is struggling to outperform the gold.
However, as we reported declining volatility is indicating we may be about to see some action.
— skew (@skewdotcom) July 14, 2020
“The Bitcoin market continues to trade within range. Caution is advised as long as price remains in this range,” said trader CryptoYoda.
Although the weekly candles are giving a short-term bullish outlook as they slowly trend upwards, the trader says, “Unless $10,500 is taken out, the bias remains in favor of the Bears and further consolidation.”
Retail Activity Pushing Prices Higher
Bitcoin trading sideways, however, has been suitable for altcoins, which have been rallying, most notably Dogecoin. This “joke cryptocurrency” had a volatile last week driven by Tik Tok zoomers.
Retail trading has the equity markets ballooning with the millennial and Gen Z using commission-free apps like Robinhood, which saw a record 3 million new accounts in Q1, to invest in cheap assets. This retail activity also spilled into the digital asset market.
While Dogecoin never reached $1 as the viral challenge went on Tik Tok, on July 8th, over 1 billion units of supply that haven’t moved for two years was suddenly transferred.
I also happen to think Dogecoin’s CEO is kinda cool. https://t.co/PscKmh1LBL pic.twitter.com/axJFDRCq6D
— ʲᵒᵉ🕶️7 (@J0E007) July 14, 2020
Cardano was another one that saw its market reaching new 2020 highs on July 8th, which saw it passing LTC’s market cap after ADA prices rose in anticipation of the Shelley mainnet release.
Meanwhile, LINK jumped to a new ATH and captured the 10th spot, VeChainThor also exploded higher with DeFi tokens using this rally to push even further.
Red or Green?
Amidst the greens, yesterday, bitcoin slid slightly after the stock market dropped, which resulted in Altcoins falling as well. On Monday, Nasdaq rallied to set an all-time high only to close down by over 1%. The last time this happened was in early March 2020, which had traders fearing another March sell-off like situation.
Today’s sweeping key reversal is a repeat of Feb 20, the start of the Feb/Mar decline https://t.co/2AVWD686PS pic.twitter.com/q8rY2T1mDc
— Peter Brandt (@PeterLBrandt) July 13, 2020
But that time, the Fed wasn’t printing money like crazy.
For now, among the top cryptos, ADA is down the most by 6.50%, followed by Chainlink’s (LINK) about 5%.
Other losers include Ampleforth (37.4%), Loopring (10.89%), Synthetix (10.60%), Theta Token (9.46%), REN (9.28%), Balancer (7.17%), Tezos (7%), Kyber Network (7.96%), Ravencoin (7.96%), Algorand (6.85%), Compound (6.52%), Stellar (6.12%), Ziliqa (5.90%), Elrond (5.5.61), Matic Network (5.09%), VeChian (4.73%), BNB (4.33%), BitTorrent (4.18%), and Tron (3.97%),
In the past hour, however, things have started to turn green.
It all depends on how bitcoin behaves now. If the world’s leading cryptocurrency continues to trade sideways, altcoins will rally. Even a slight uptrend could help these cryptocurrencies, but a drop in Bitcoin price will mean only more losses for the altcoins.
“Alts will likely take a hit once Bitcoin shows its true face in the form of turbulent moves in either direction; thus, more patience is needed,” said CryptoYoda.