The Bitcoin (BTC) price is finally surging and the digital assets markets looks like its beginning to heat up again.
Matteo Greco, Research Analyst at the publicly listed digital asset and fintech investment business Fineqia International, has shared key insights with CI regarding the latest developments in the crypto space.
Greco notes that Bitcoin (BTC) had “closed the previous week at around $28,000, marking a substantial 6.7% increase compared to its closing value of $26,250 in the preceding week.”
Greco added that BTC’s price action “displayed strong momentum throughout the week, particularly noticeable on Thursday when it surged to $27,000.”
It then consolidated around this level “for the next two days before embarking on a new uptrend, ultimately concluding the week at $28,000.”
Notably, September saw BTC registering “a 4% price increase, marking the first September price rise since 2016. This welcome development provided respite for the digital asset market capitalization, following two consecutive negative months in July and August.”
Greco also mentioned that Bitcoin now “leads the charge in this upward trajectory, as evidenced by the Bitcoin dominance metric, which measures the relationship between Bitcoin’s market capitalization and the total digital asset market capitalization. Bitcoin dominance rose to 50.4%, up from 49.9% at the end of the previous week, showcasing its relative strength in comparison to the broader digital asset market.”
Greco pointed out that despite the encouraging price movements, trading volumes remain notably subdued. Daily trading volumes “on centralized exchanges, measured over a 7-day span, continue to display limited activity, with the cumulative trading volume over the past week hovering around $10.5 billion, closely mirroring the figures recorded seven days earlier. On a monthly basis, trading volumes on centralized exchanges amounted to approximately $312 billion in September, reflecting a 26% decline compared to the $423 billion observed in August.”
Greco added that low volumes typically “coincide with reduced market volatility.”
This connection is corroborated “when examining BTC’s 30-day volatility, which has declined to approximately 23%.” This marks the third-lowest level “recorded since the inception of this metric in 2017.”
Greco added:
“Despite several months of experiencing low levels of both volatility and trading volume, the upcoming two quarters hold the potential to become catalysts for the digital asset market, reigniting interest and trading activity. Notably, these pivotal moments are in close proximity. The final deadline for most Bitcoin Spot ETF approval or rejection is slated for mid-March, closely followed by the scheduled Bitcoin halving in mid-April 2024.”
Greco concluded:
“The Bitcoin halving event involves a halving of miners’ rewards for mining Bitcoin and has traditionally been a precursor to an uptrend in the months leading up to and following the event. Given the confluence of factors, including the SEC’s impending decision on ETFs, the focus and anticipation have shifted significantly toward the first and second quarters of 2024.”