Trading volumes in July on the CEX.IO crypto exchange doubled compared to June 2020. Important reasonsgrowth is the increased interest of participantsmarket to ETH, in particular due to DeFi and the imminent release of Ethereum 2.0. Now ETH is a growth driver, it pulls up other cryptocurrencies, in particular BTC.
Starting around July 20th, trading volumes on CEX.IO increased several times after a relatively long lull, reaching the levels of May 2020.
Trading volumes of all cryptocurrency pairs on CEX.IO
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Usually the share of the BTC / USD pair in the total volume of the exchangeis about 40%, and over the past few days, the share of BTC / USD was only about 20%. The rest of the volume was provided by other pairs, in particular, volumes in pairs with ETH increased several times. For the week of July 20-26, the average daily ETH turnover on the exchange was 3 times higher than the average daily ETH turnover in June.
Trading volume of cryptocurrency pairs with ETH. Y axis – By what percentage on this day was the ETH turnover greater than the average daily ETH turnover for June 2020. Peak - July 26 430%.
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It is safe to say that now it is ETH that is the driver of the cryptocurrency market growth.
On average, the balance of BTC and ETH deposits and withdrawals on CEX.IO survived. Sometimes there is a noticeable bias towards BTC input and ETH withdrawal, which indicates either an increased demand for buying ETH, or active arbitrage strategies of traders.
Bitcoin forecast and other reasons for growth
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Bitcoin for the first time since the beginning of the year reached$ 12,000, but could not resist and rolled back. However, now the cryptocurrency is again approaching the psychological support level. If you follow the charts of the dynamics of the coin, you can see that the bullish trend was formed 50 days ago. The cryptocurrency was gradually striving upward, breaking one level after another.
In addition, the growth of bitcoin was facilitated byother factors. Chief among them is the rapid rise in gold prices. And although many experts believe that gold and BTC are not correlated, this is not the case. It's not for nothing that bitcoin is called “digital gold”. As soon as the cost of a troy ounce of gold surpassed the $ 1,900 mark, the price of bitcoin went up sharply.
The strengthening of the bitcoin rate was facilitated byincrease in dollar emission. Most recently, the US government announced that it is preparing a new bill aimed at overcoming the consequences of the coronavirus pandemic, which includes a number of anti-crisis measures, such as an additional issue of the dollar, the issuance of support payments of $ 1200 per person. In fact, passing the bill will result in trillions of more cheap dollars being released onto the market. Issuing checks for this amount will stimulate buyers of cryptocurrencies. Last time, in April-May of this year, the purchase level of cryptocurrencies in the amount of $ 1200 increased sharply. This means that Americans are increasingly thinking about alternative sources of investment, and one of them is cryptocurrencies.
Since the beginning of 2020, the price has tested the resistance around the $ 10,500 level several times.
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