Market Wrap: Bitcoin Trading Tepidly at $33.7K While SushiSwap Eats Raw Market Share

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Bitcoin is taking a break and staying in a narrow trading range with a sub-par volume compared to last month. Alternative cryptocurrencies and decentralized financing are now in the spotlight.

  • Bitcoin (BTC) starts trading at $ 33,782 as of 9:00 PM UTC (4:00 PM ET). Increase of 2.5% in the last 24 hours.
  • Bitcoin’s 24-hour range: $ 32,341 to $ 34,715 (CoinDesk 20)
  • BTC just marginally above the 10-hour and 50-hour moving averages on the hourly chart, a sideways bullish signal for market technicians.

Bitcoin trading on Bitstamp since January 29th.

Source: TradingView

Bitcoin price is extending its weekend break on Monday and trading in a fairly narrow range of $ 32,500 to $ 34,500, despite 24-hour performance up 2.5% as of press time.

“XRP – and DOGE, interestingly – both jumped over the weekend while most of the majors, including BTC and ETH, faltered,” noted Andrew Tu, an executive at quantitative trading firm Efficient Frontier. “While the timing is hard to tell, it is usually after a period of low volatility that the market breaks out in one direction or another.”

Bitcoin spot trading volume on major exchanges was $ 2.6 billion at the top eight CoinDesk 20 venues on Monday at press time. That’s a lot less than the maddening average of $ 4.8 billion last month, but is within earshot of the three-month average of $ 2.7 billion.

Bitcoin volume on major exchanges last month (Shuai Hao / CoinDesk Research)

Source: CryptoCompare

Lower quantities can explain a certain price weakness. However, given the 16% rise last month, Tu skews more bulls than bears.

“The market seems bullish, although another downtrend is always possible,” he said.

Bitcoin price development at Bitstamp in 2021.

Source: TradingView

“January was a peak month for Bitcoin spot and futures volume, easily making new monthly all-time highs,” said Jason Lau, chief operating officer of the San Francisco-based exchange OKCoin. “For OKCoin, the spot volume in January was more than twice in December, which was an all-time high,” added Lau. “There is clearly still a lot of interest in Bitcoin as an asset, with Elon Musk most recently showing support. ”

Continue reading: “A good thing”: Elon Musk says he is a supporter of Bitcoin

Lau told CoinDesk that he sees a consolidation in Bitcoin prices at current levels after rising to $ 42,000. He noted that the dominance of Bitcoin, a measure of the oldest market share of cryptocurrencies in the world’s ecosystem, continues to decline. Less than a month ago, on January 3rd, Bitcoin dominance peaked at over 73% and has since declined by about 10%.

Bitcoin dominated the market to date in 2021.

Source: TradingView

“Alt and DeFi tokens are having their moment with less bitcoin dominance,” Lau said.

SushiSwap devours DEX market share

The second largest cryptocurrency by market capitalization, Ether (ETH), rose Monday, trading at $ 1,334, and rose 2% in a 24-hour period at 9:00 p.m. UTC (4:00 p.m. ET).

Continue reading: Decentralized exchange volumes reached a record value of over USD 50 billion in January

According to the data aggregator Dune Analytics, SushiSwap achieves market shares in trading volume for decentralized exchanges (DEXs) and at the time of going to press is reaching an all-time high of over 23% of the total market.

Market share of DEX trading volume over the past week.

Source: Dune Analytics

SushiSwap is a “fork” of the ruling DEX by volume Uniswap, meaning that Uniswap’s smart contract code was used to create the competing exchange. Peter Chan, trading director of OneBit Quant, says that both SushiSwap and Uniswap benefit from price fluctuations in cryptocurrency to better position themselves in the market. “Both have seen tremendous volume growth lately, largely due to increased market volatility,” Chan told CoinDesk.

Market share of the major DEXs over the past six months.

Source: Dune Analytics

According to Misha Alefirenko, co-founder of crypto market maker VelvetFormula, the price hikes on DEX exchanges have recently tempted traders to move from central exchanges (CEX) to DEXs. “As we saw with the rally in altcoins, DEXs are predictable to gain some market share from CEXs, especially in native DeFi tokens.”

Other markets

Digital assets on CoinDesk 20 are mostly green Mondays. Notable Winners as of 9:00 PM UTC (4:00 PM ET):

XRP, the San Francisco-based company of Ripple Labs, saw its price spike Monday, followed by a steep decline. This made XRP the top loser of CoinDesk 20 in the last 24 hours.

“The XRP pump and dump may have been another situation where retailers drove the price up only to make it crash,” noted Efficient Frontier’s Tu. “It seems like this type of phenomenon is occurring more frequently, especially in less liquid markets like crypto, which have been legitimized by the current zeitgeist.”

Continue reading: XRP pump fails because the price deviates 40% from the daily high

  • Oil rose 2.8%. Price per barrel of West Texas Intermediate Crude: $ 53.66.
  • Gold was in the green at 0.75% and at $ 1,860 at press time.
  • Silver gained significantly, gaining 7.5%, and changing hands at $ 28.93.
  • The 10-year US Treasury yield was unchanged on Monday at 1.069.

The CoinDesk 20: The assets that matter most to the market