Markets & Riots
Bitcoin rallied to 10k in response to Trump’s threats. Crypto derivatives climbed to the new heights, while P2P trading surged in Russia. Crypto news of June 1-7 in the BTCMEX review.
Once again Bitcoin price broke the 10k barrier surging to $10,380 on June 2 (7 am UTC+8, Hong Kong), after spending the last month trading in a symmetrical triangle pattern. The move occurred as United States President Donald Trump mobilized local police and the National Guard to disperse masses of protestors on the White House grounds.
The BTC price slipped back soon after the same day, June 2, and the crypto pioneer was trading under $10,000 for the rest of the week.
The market saw high volatility right after with $230 million in both Longs and Shorts liquidated on BitMEX by June 3.
Meanwhile, Bloomberg Finance released the June 2020 Edition of Bloomberg Crypto Outlook, saying says that all signs point to Bitcoin going on the major bull run in 2020, the only question is whether it will break the all-time high of $20,000.
Derivatives broke new record
Crypto derivatives trading broke the monthly volume record hitting a new all-time high of $602 billion in May. The monthly volume increased by one-third, according to the report released by CryptoCompare. In percentage terms, the monthly volume increase in May for derivatives was six times larger than the increase in spot volumes, which was up 5% to $1.27 trillion. The biggest day of the month was the third Bitcoin halving day eve on May 10, which saw a huge spike in spot trading volumes to $64.7 billion.
Markets and riots
Despite protests and rioting happening on the streets of the US, and general uncertainty in the global economy and finance, mainstream markets have posted positive numbers. The US mainstream markets appear unfazed. For example, the Dow Industrial Average, or Dow, a mainstream market barometer, still continues its recovery. Anthony Pompliano gave his point of view on the situation.
“Yes there are protests, there are all these things, but the bigger force is the fact that now all these businesses are opening up,” Pompliano said in a June 2 episode of “Lunch Money” on his YouTube channel. “There’s going to be more economic activity and there should be a recovery in that data.”
Many express the thoughts that Bitcoin can be an effective protest against financial institutions for those who can’t take to the streets. Ethereum co-founder Vitalik Buterin says the current financial crisis is very different from 2008 and that the crypto community needs to adjust its thinking accordingly. He tweeted, it is a “virus crisis”, a crisis of “epistemology” and one of “overbearing policing”.
Ethereum Classic performed its scheduled upgrade to bring Ethereum’s Istanbul features to the classic chain.
Ethereum co-founder Vitalik Buterin made a recent statement that the blockchain’s initial layer-two scaling deployment is nearly complete. He pointed out to a number of relevant developments and second-layer Ethereum scalability solutions that have recently been launched.
Nevertheless, the project still needs some work. Optimistic Rollups still will take a significant amount of time to reach the mainnet and be tested, according to experts.
Russia trades irregardless of regulations
Despite the strict cryptocurrency regulations suggested by the Russian lawmakers recently, the COVID-19 pandemic seems to be one of the drivers behind the recent sharp increase in Bitcoin trading volume across Russia. On June 4, a new study performed by a number of Russia-based crypto exchanges revealed a significant rise in Bitcoin trading across Russia since March amid the coronavirus lockdown. The activity on crypto exchanges grew by about 15-20%, registering a 12% increase in Russian users. Russia is also strengthening its leadership on a major peer-to-peer exchange, LocalBitcoins.