Bitcoin Is Rebounding. Here’s One Reason

Aug 05, 2022

Bitcoin Is Rebounding. Here’s One Reason

After a rough year, Bitcoin prices have begun to recover in the last month, with small-scale investors pouring money into cryptocurrencies.

Bitcoin prices increased by about 20% in July, reaching nearly $24,000 from under $20,000. Nonetheless, the biggest cryptocurrency has fallen two-thirds from its all-time peak in November 2021.

Bitcoin's current climb has been fueled by the token's link to equities, particularly tech companies, which have risen as investor concerns about Federal Reserve interest rate rises have subsided. The Nasdaq, dominated by technology stocks, gained 12% in July, marking its greatest July performance on record and the largest one-month rise since April 2020.

Regardless of correlations, there must be investors putting money into digital assets for Bitcoin rates to rise. According to a variety of market indicators, retail traders — particularly smaller ones headquartered in the United States— drove significant demand for Bitcoin in July and are continuing to push prices higher in August.

"Retail is buying Bitcoin at the quickest rate in history," Marcus Sotiriou, an analyst at digital asset broker GlobalBlock, said in a late July report.

The Coinbase Premium Gap, which analyzes the difference between Bitcoin prices published on Coinbase Global (COIN) and those on Binance, the world's largest crypto exchange, indicates that US investors are particularly interested in crypto. Because Coinbase is largely popular in the United States, the discrepancy — as recorded by data firm CryptoQuant — might be seen as a sign of how crypto demand among American investors compares to the rest of the globe.

As recently as July 12, Coinbase offered a $25 per Bitcoin discount compared to Binance, but as the month progressed, the discount became a premium for the first time in months. By July 31, investors on Coinbase in the United States were paying a $14 per Bitcoin premium to purchase the token, the largest premium since the cryptocurrency was worth approximately $40,000.

https://liquidity-provider.com/app/uploads/2022/08/unnamed-8.png

Other information supports the premise that most small traders have swooped in to buy Bitcoin at its lowest point since 2020. According to crypto market analytics firm Messari, the total quantity of Bitcoin in the top 1% of accounts fell to 17.32 million in July, down from 17.34 million in June. In July, the quantity of Bitcoin in accounts with balances greater than $10,000 grew from 18.2 million to 18.4 million.

"The 90-day change in Bitcoin addresses containing less than one coin (usually retail) is at an all-time high." "The last time it got close to this level was in 2018, when Bitcoin peaked at about $20,000," GlobalBlock's Sotiriou observed. "The fact that a comparable pace of accumulation occurs after a 70% collapse illustrates retail holders' confidence in Bitcoin's long-term worth."

According to CryptoCompare, the cryptocurrency derivatives market accounts for two-thirds of exchange-traded digital asset flows. Bitcoin futures are especially popular among institutional investors in the United States since they are traded on the CME and regulated by the Commodity Futures Trading Commission.

The CME provides two types of Bitcoin futures contracts: a normal contract worth 5 Bitcoin, or more than $115,000 at current rates, and a micro contract worth 10% of 1 Bitcoin, or approximately $2,300. The former is more popular with institutional investors, while the latter is aimed primarily at retail investors.

Subscribe Our Newsletter

Fortinet's Stock Drops After a Macro Warning. CrowdStrike and Palo Alto Both Trade Lower.

Milena

Fortinet’s Stock Drops After a Macro Warning. CrowdStrike and Palo Alto Both Trade Lower.

An unusually high volume of deals that were supposed to be completed in June have been pushed back to future quarters, affecting Fortinet stock, according to CFO Keith Jensen.

Stocks
Disney Stock Jumps on Strong Results From Both Streaming and Theme Parks
Disney Stock Jumps on Strong Results From Both Streaming and Theme Parks

Disney's theme parks performed far better than that: The sector generated sales of $7.2 billion, more than double the previous year's amount, and an operating profit of about $2.5 billion.

Stocks
Get the ultimate solution: B2BinPay Get the ultimate solution: B2BinPay
Sponsored
Alexander

How to Choose a Forex Liquidity Provider in 2023?
The Forex market is experiencing a continuous rise in the number of brokers: over 1,200 Forex brokers are available on MetaTrader alone currently, with the...

discover
What is a Liquidity Provider Fee?

Liquidity Provider

What is a Liquidity Provider Fee?

Let's find out how do FX Liquidity Providers keep markets moving, what are Liquidity Provider fees and ways to charge them.

Liquidity
Contact us bg

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Constantine

    Best DAO Projects in 2025

    Best DAO projects in 2025

    Alexander

    Crypto Nodes That Pay: Your 2025 Guide to Top Passive Income Opportunities in Crypto

    crypto nodes that pay

    Alex

    Pi Network: Scam or Groundbreaking Crypto? The Full Analysis

    Pi Network Explained

    Constantine

    Triple Net Lease: Meaning, Benefits, and Strategies Explained

    Triple Net Lease

    Constantine

    Hanging Man Pattern: How to Identify and Trade It Effectively

    Hanging Man Pattern

    Alex

    5 Infinite Banking Mistakes That Could Cost You Thousands

    Infinite Banking Mistakes to Avoid

    Aleksander

    Solana Firedancer: Solving Solana’s Biggest Problems with a New Engine

    Solana Firedancer explained

    Alexander

    What Is an Interest Coverage Ratio? How to Use This Financial Metric to Evaluate Company Health

    Interest Coverage Ratio Explained

    Hazem

    After-Hours Trading: Can You Trade After Financial Markets Close?

    After-Hours Trading Explained

    Alexander

    How to Scale a Crypto Exchange Business and Stay Competitive

    how to scale crypto exchange business

    Constantine

    Crypto CrypticStreet Review: The Future of DeFi and Secure Crypto Trading

    Crypto CrypticStreet Review: The Future of DeFi and Secure Crypto Trading

    Alexander

    Bitcoin Power Law Explained: How It Shapes BTC’s Long-Term Growth

    Bitcoin Power Law Explained: How It Shapes BTC’s Long-Term Growth

    Hazem

    Megaphone Pattern​: What Is It? How to Use It In Trading

    Megaphone Pattern​: How to Read & Trade with It

    Constantine

    Top 5 Liquidity Bridge Providers in DeFi

    Top 5 Liquidity Bridge Providers in DeFi

    Hazem

    Max Funded IUL Explained: Is It a Legitimate Financial Strategy?

    Understanding Max Funded IUL

    Alexander

    Tax Refund Timeline: When Will You Get Your Tax Return?

    how long does it take for tax refund

    Constantine

    Crypto Liquidity — What is it, and How to Measure It?

    What is Crypto Liquidity and How to Measure It?

    Constantine

    AI in Finance: A Game-Changing Trend Shaping the Industry

    AI in Finance

    Hazem

    5 Ways to Make Money with ChatGPT and Build Your Wealth

    Make Money with ChatGPT

    Constantine

    Top AI Companies to Invest in April 2025

    Top AI Companies to Invest in March 2025

    DeepSeek vs ChatGPT: Which AI Technology is Better For You?

    DeepSeek vs ChatGPT: Feature-by-Feature AI Tool Comparison

    Constantine

    Top Solana Meme Coins in 2025: Best Presales and Where to Buy

    Solana Meme Coins 2025

    Alexander

    How Renewable Energy Stocks Can Supercharge Your Portfolio

    How Renewable Energy Stocks Supercharge Your Portfolio

    SEC Crypto Regulations: What Financial Advisors Need to Know

    SEC Crypto Regulations: Insights for Financial Advisors
    liquidity-provider-logo
    • News
      • Stock Market Forecast
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
      • White Label Brokerage Platforms
      • Broker CRM Platforms
    [email protected]

    © 2024 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.