Bitcoin Rises Above $ 42,000 As The Bull Market Continues

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Bitcoin rose nearly $ 43,000 on Friday as short positions continue to unwind after the second quarter sell off. The world’s largest cryptocurrency in market value has risen by around 1% over the past week, compared to a 17% gain for Ether over the same period.

Some analysts are bullish on crypto’s broad rally and see other benefits, especially for the ether. Ether surpassed $ 2,600 on Thursday as the latest hard fork upgrade, dubbed “London,” officially activated on the Ethereum blockchain network.

“An atmosphere of optimism seems to have returned to the cryptocurrency markets,” Paolo Ardoino, CTO of Bitfinex, wrote in an email to CoinDesk. “Still, the turbulence we have seen in the crypto markets over the past few weeks is unlikely to abate.”

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Related: Ethereum Burns 36% Of New Coin Issuance In 2 Days

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“BTC is also showing strength, which is expected to continue next week as it today broke a downtrend that stretched back to previous all-time highs in April,” UK trader Marcus Sotiriou wrote. digital asset broker GlobalBlock, in an email to CoinDesk.

From a technical standpoint, the rally in bitcoin above $ 42,000 is an encouraging sign. Friday’s strong price action is an attempt to break out of the medium-term downtrend, which, if confirmed, could generate a further rise towards resistance of $ 50,000 to $ 55,000.

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“The market has been oversold for quite some time,” said Kevin Kang, founding director of crypto hedge fund BKCoin Capital, in an interview with CoinDesk. “I think we will resume the bull market in the coming months. “

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Ether bullish activity

Most of the ether options activity has been focused on higher strike prices, longer duration calls or bullish bets.

Data provided by Switzerland-based Laevitas shows that ether volumes on Deribit, the largest crypto options exchange, have increased from over 50,000 ETH to 153,000 ETH ($ 424 million) over the years. last 24 hours. This brings him to the highest level since the end of May. On Deribit, an ether options contract represents 1 ETH.

Overall, call options recorded higher activity than puts, and the most popular options were calls expiring in March 2022 with strike prices of $ 50,000 and $ 40,000. , wrote CoinDesk’s Omkar Godbole.

Recent bullish activity surrounding the Ethereum network upgrade has contributed to the outperformance of ether versus bitcoin, albeit with greater volatility. The chart below shows that Ether tends to be more volatile than Bitcoin.

Bitcoin transaction volume

Bitcoin’s total transfer volume (adjusted for entity) has increased to $ 7.48 billion per day over the past 14 days, indicating increased activity on the blockchain as the price of crypto currency is increasing, according to Glassnode.

Transactions over $ 1 million, which is about 46.5% of total trading volume (about $ 25 BTC), were on the rise, Glassnode noted.

“Entity-adjustment” is a methodology developed by Glassnode to measure the chain volume that has really changed hands. “Entities are defined as a group of addresses controlled by the same network entity and estimated using advanced heuristics and Glassnode’s proprietary clustering algorithms,” Glassnode wrote. (Read more here.)

LINK, MATIC, ETH volumes increase

There has been a steady increase in the volume of LINK on Coinbase, according to the exchange. The number has grown by 35% since the protocol released its smart contract kit v0.10.10 on July 25, which includes full support for Optimism. The volume in MATIC has declined this week.

Meanwhile, on August 4, a day before EIP 1559, the volume of ether exceeded that of bitcoin by 61%.

Altcoin and DeFi review

Binance Smart Chain beats Ethereum by certain metrics: In the latest installment of the blockchain competition, Binance Smart Chain, the public blockchain backed by Binance, the world’s largest centralized crypto exchange in terms of transaction volume, again overtook the Ethereum blockchain in daily transactions. BSC had previously flipped Ethereum on transaction count due to the success of PancakeSwap, a decentralized exchange on BSC that was popular amid the decentralized finance (DeFi) craze. This time, however, Binance’s success came thanks to a relatively little-known game on BSC called “CryptoBlades”.

The SEC accuses the so-called DeFi company for an allegedly fraudulent $ 30 million offer: the United States Securities and Exchange Commission (SEC) charged what it described as a decentralized financial lender, Blockchain Credit Partners ( d / b / a DeFi Money Market) and two of its senior executives for raising $ 30 million through allegedly fraudulent offers. The case is the agency’s first involving securities using DeFi technology, according to the SEC.

Relevant News: Other Markets

Most digital assets on CoinDesk 20 ended higher on Friday. In fact, everything was in the green except for the dollar-linked stablecoins.

Notable 9:00 p.m. UTC (4:00 p.m. ET) winners:

coin (FIL) + 8.88%

dotted (DOT) + 8.12%

uniswap (UNI) + 6.32%

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