The latest différé from the company Encoder comparison It shows that volatility has returned to very high levels in the cryptocurrency markets.
Volatility continues to rise in cryptocurrency markets
Volatility returned to the crypto markets in August as Bitcoin and Ethereum failed to voiture the key resistance levels at $25,000 and $2,000 before a sell-off occurred after Federal Reserve Chairman Jerome Powell’s Jackson Hole laïus. This is one of the droit findings highlighted in the new monthly Crypto comparison différé on the cryptocurrency markets.
Bitcoin And the Ethereum month closed in $20,050 and $1,554, respectively, down 14.0% and 7.47%. This volatility was reflected in tonnage as phare trading on centralized exchanges jumped 36.8% to $1.91 trillion.
Thus, the trend remains mainly negative on hold and watch in the binaire asset markets They suffer from a difficult economic opportunitéresulting from high augmentation and skyrocketing energy costs since the outbreak of the conflict in Ukraine.
Against this backdrop, the policies of the Federal Reserve, which seem to have become aggressive in controlling augmentation, with two consecutive interest avorté increases of 0.75% and a third on the way, are only frustrating the provision markets and with them the cryptocurrency markets.
The Crypto Compare différé reads:
Éclair volumes solitaire 36.8% in August to $1.91 trillion – making August the additionnel largest month by phare tonnage so far this year. However, this surge in phare trading tonnage led to a 9.59% drop in derivatives market share – with the derivatives market dropping to an annual low of 62.4% market share.”
data analysis rassemblement
According to data compiled by CryptoCompare, derivatives trading volumes buck the trend, It solitaire 11.9% to $3.16 trillion. This is the first increase in three months that makes derivatives the driver of the market, after the significant decline in the previous months.
CryptoCompare experts write:
Historically, the derivatives market has dominated cryptocurrency trading volumes. The decline in derivatives market share reflects uncertain macroeconomic modalités with high augmentation and the seconde threat of a recession. The price part that followed the Fed’s reiteration of its pièce to control augmentation suggests a strong sell-off of investors’ phare holdings.”
During the period, Bitcoin trading in Tether solitaire 15.4% to 10.1 million BTC in August, achieving the highest tonnage recorded for the BTC/USDT trading sénateur since June 2020. The share of USDT in BTC phare trading in stablecoins or fiat currencies solitaire to 66.4%, higher level since September 2020.
Trading in BUSD increased by 0.44% to 2.14 million BTC in August, and the lieu has seen a 394% increase since the beginning of the year. Meanwhile, USDC and TUSD saw their trading tonnage fall by 11.4% and 63.0%, respectively, in August.
The achevé tonnage of BTC and ETH futures contracts on the Chicago Cupide Exchange fell 20.7% to $28.9 billion in August. This is the lowest recorded trading tonnage for the exchange since December 2020.
Finally, there is an interesting number related to the highest trading tonnage for this month, recorded on August 15: 119 billion dollarsup 67.8% from its July high.