Bitcoin (BTC) rose by 15% in the past week as optimism in the market increased. This increase is largely due to the price of BTC which managed to break through US $ 40,000 (approximately Rp 574 million) on Friday.
Country Manager Luno Indonesia's Jay Jayawijayaningtiyas said BTC, Ethereum (ETH) and BNB (BNB) have been chasing each other in the past week. "Historically, eth and BNB performance has tended to beat BTC's performance in times of high profit. However, with market conditions still in prolonged fear, it seems that traders or investors are still waiting and observing bitcoin movements before taking action against ETH or BNB," he said.
The 90 daily correlation between BTC and ETH is at its highest point since June 2020. BTC's correlation with the S&P 500 is declining as the stock market moves flat while the price of BTC surged at the end of last week.
Shiba Inu made a 53% profit in the past week and topped the top 50 coins with the largest market capitalization, followed by XRP with a 39% gain. Meanwhile, the more conservative traders/investors of ETH and BNB, it seems that some groups of high-risk altcoin traders/investors have returned to action.
"The three biggest coins are chasing each other these days, as are the other coins. Nonetheless, we observed more movements in high-risk coins than small altcoins," Jay said.
In the midst of market conditions that are no longer filled with fear, high-risk betting actions on small coins are starting to pay off. The high beta profile on the Small Capitalization Index is beginning to be seen with the performance of small coins that surpassed the big coins of the green market days, and the performance below that of the big coins on red market days.
XRP's huge gains in the past week have increased the coin's dominance to above 2% for the first time since November.
In January, the upper market segments of usdt and USDC stablecoins jumped dramatically. This is because crypto traders / investors are looking for a safe place to store their assets as long as the market is bearish. So far in February, these two stablecoins have quite lost their market share.
Meanwhile, in the past week, BTC trading volume still tends to be low, whereas on the other hand, the price of BTC has risen with high volatility. Limited liquidity may be the main cause of btc's rising price as large purchase orders on thin order books tend to push prices upwards. Last Friday, the price of BTC rose by 11%, and on the same day, spot volume was just under $7 billion.
A week ago, BTC's weekly volatility was at its lowest point since November 2020. Where, the movement of bitcoin through the resistance or support level will be the driver of rising volatility. On Friday, BTC broke through the resistance level at $40,000 and rose by 11%.
"This is the biggest daily increase in eight months. This price movement last week is a reminder that high volatility does not always result in the fall in the price of BTC," jay explained.