Bitcoin Nears $35,000 as Volume of Stablecoins Grow
After gaining 5.96% Bitcoin rises to near $35,000 on Thursday as the volume of stablecoins in the crypto market grows. Total crypto market volume over the last 24 hours printed at $81.79 billion, which makes a 23.16% decrease.
Meanwhile, the total volume in DeFi is currently $6.02 billion, representing 7.36% of the total crypto market 24-hour volume while the volume of all stable coins is now $63.64 billion, which is 77.80% of the total crypto market 24-hour volume.
At $34.800 Bitcoin’s dominance is currently about 50%.
On Wednesday, Lennard Neo, Head Of Research at Stack Funds, a Singapore-based crypto-focused fund management company, explained why they believe that “Bitcoin is very close to the bottom.”
His comments about Bitcoin were delivered in a research note (titled: “Strong support observed as Bitcoins get scooped up at $30,000”), which was published yesterday.
The research analyst said, “We have observed a meltdown in long liquidations over the past few weeks. This coupled with the Leverage ratio (grey line) falling to a 2-year low after dipping below that of March 2020 levels, provide evidence that traders are more cautious in taking positions.
“Inflows for Bitcoin have skewed to spot accumulation as opposed to speculation, as investors match their expectations towards a longer-term horizon – signaling less propensity to sell.
“In the face of the recent sell-off, we also see significant support levels around the $30,000 handle, with substantial bids coming in to fill up the offers.
“The strength comes on the back of Microstrategy accumulating more Bitcoins, and we have noticed that Whales are also re-entering the market as risk appetite returns. Short squeeze hunters have also begun waning away in the near term as markets continue to establish ground on a consolidation phase. “
Crypto Investment Products’ AUM Dropped 9.5%
The total assets under management among cryptocurrency investment products dropped by 9.5% to $40.5 billion this month after the prices of leading cryptocurrencies plunged, with bitcoin falling 15.1% month-to-date and Ethereum dropping 30.3% over the same period.
According to CryptoCompare’s Digital Asset Management Review, average weekly asset inflows across all major cryptocurrency investment products decreased by a whopping 215% since May, as $86 million of outflows were recorded.
Notably, cryptocurrency exchange-traded funds (ETFs) saw a net increase in assets under management of 8.5% to $1.8 billion. Crypto investment products with underlying BTC saw their assets under management drop 6.4% to $29.1 billion, which means they now represent 71.9% of total AUM, up from 69.5% last month.
Ethereum products’ assets under management fell by 15.2% to $9.5 billion, and now represent 23.4% of total assets under management. Among the ETFs, the 3iQ CoinShares Bitcoin ETF (BTCQ) had the highest AUM at $752 million, followed by Purpose’s Bitcoin ETF (BTC) with $715 million.
While assets under management dropped by less than 10%, the report details aggregate daily volumes across all cryptocurrency investment products decreased by “an average of 63.1% in June compared to May,” meaning average daily volumes for this month are now at $494.4 million.
Over the last 30 days, both bitcoin and ether-based products experienced heavy losses that got up to 22.8%. The MVDA Index, a “market cap-weighted index that tracks the performance of a basket of the 100 largest digital assets,” dropped by 15% over the same period.
Data from TradingView shows that the total crypto market capitalization has dropped by around $1 billion since it hit a $2.4 billion peak last month. It’s still far above the $1 trillion marks, which was for the first time surpassed earlier this year.
Bitcoin Nears $35,000 as Volume of Stablecoins Grow
