In last week’s edition of Overbit’s Saturday Sitdown, we saw “that there was no follow-up in selling pressure on Bitcoin (BTC) below $8,825.”. Today, we see a continuation from that move, seeing BTCUSD has jumped back up to the $9,400 range. This price movement in BTCUSD has translated into overall bullishness across the cryptocurrency ecosystem entirely.
Strongly following BTCUSD, ETHUSD optimism continues to rise. We see extreme bullishness and correlating volume across these two significant digital assets, and the assets pegged to them. With the cryptocurrency market finally seeing some renewed volume and volatility, it’s no surprise the interest in crypto has exploded this week through channels like TikTok, Twitter, and other social platforms.
An exploding theme across space is DeFi, as we covered last week. And with ETHUSD being the primary collateral used in these DeFi transactions, we have seen continued growth, interest, and activity across the ETHUSD blockchain to the tune of millions of dollars a week.
It’s worth mentioning this high level of economic activity surrounding DeFi is not confined within the Ethereum blockchain or its users. CoinDesk reported that, in June, nearly $80m was moved from Bitcoin into Ethereum. While not a massive amount of money, this trend seems to be the start of something big for finance on the blockchain and between blockchains. While some have debated coin-specific “maximalism” over the years, it seems many, many others are simply voting with their wallets, opting into a financial system not hamstrung by one specific chain.
Switching over to traditional markets, we see a much slower change of pace compared to the cryptocurrency market, though this does not mean the former is without any action. Starting with GBP/USD, we can see the ascending wave at 1.2580 has come to a close. This was a bullish move for GBPUSD in which it overtook last Friday’s high. However, with this low-timeframe move currently close, we are entering another consolidation period for GBP/USD. As for USDJPY, the previous week, we saw the pair making the week’s most significant gains. Now, we see the pair continue to consolidate in this 107.50 range. Without any more critical news arriving from the Japanese public or private sector, this structure very well could break up or down.
Heading into the weekend, we see EURUSD correcting towards 1.1250, but poised to resume a higher trend as positive news comes out of continuing EU talks of economic recovery. This rise in EURUSD comes after a long term trend of a weakening EURO and is supported by bullish signals on the RSI. This uptrend for the EURUSD could push the pair to 2020 highs.
As we see slower or all stalled growth in the traditional markets in certain countries, it seems the rise of the now booming cryptocurrency ecosystem will be a necessary second financial market to participate in as an investor, who is interested in growth, volatility, or perhaps both in 2020.
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