Leverage, not the spot market, fueled a crypto market July rally that restored $240 billion in market capitalization. While leverage boosts returns, it exposes traders to forced liquidations by exchanges it they can't meet margin shortages. Therefore, derivatives-led rallies like July's often inject volatility into the market. That said, overall leverage still remains low compared with early 2021.
Another key takeaway from the report is that there was no shortage of people chasing stablecoins despite the collapse ofin May and the ensuing volatility in other cryptocurrencies with values pegged to the dollar or other external references. CryptoCompare's report shows volumes for bitcoin-to-stablecoin tether spot trading increased 31.5% to 8.78 million BTC in July. Bitcoin spot trading into BinanceUSD surged 80.2% to 2.13 million BTC, surpassing bitcoin-to-U.S. dollar turnover for the first time on record.
"Investors continue to prefer safety under macroeconomic conditions," CryptoCompare noted concerning the pick up in bitcoin to stablecoin volumes. The crypto market valuation on Thursday rose to a two-month high of $1.17 trillion, extending July's recovery. Volumes could pick up further in coming weeks as the supposedly-bullish
South Africa South Africa Latest News, South Africa South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: Utoday_en - 🏆 295. / 63 Read more »
Source: Crypto_Potato - 🏆 568. / 51 Read more »