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

Bitcoin, Ether, and Other Cryptos Claw Back Losses
Bitcoin, Ether, and Other Cryptos Claw Back Losses

Bitcoin, the world's most valuable digital asset, went up 8.3 percent in the previous 24 hours to $36,398, according to CoinDesk statistics. It had traded at $33,000 in the midst of Monday's dumping - it had previously been over $42,000 the previous week.

Crypto
European Stock Markets Push Higher as Omicron Strain Concerns Ease
European Stock Markets Push Higher as Omicron Strain Concerns Ease

In a week marked by ups and downs, European stock markets edged up on Friday, soothing fears about the Omicron coronavirus type and its influence on global economic recovery.

Stocks
Get the ultimate solution: B2BinPay Get the ultimate solution: B2BinPay
Sponsored
Liquidity Provider

How to Promote PAMM/MAM & Copy Trading Service as a Broker
Almost every broker strives to give its customers a variety of investment options, particularly for those who do not want to trade on their own. The employment of customized trading robots, which can be operated directly on their accounts, allows them to accomplish this goal.

discover
what is liquidity of bitcoin

Constantine

The Liquidity of Bitcoin and the Factors That Affect It

Learn what bitcoin liquidity is, what factors affect it, and how it differs from the liquidity of other financial assets.

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

    Alexander

    What is a Fair Value Gap? A Guide to Trading Market Imbalances

    What is Fair Value Gap

    Vitaliy

    Triangle Patterns in Trading: Mastering Ascending, Descending & Symmetrical Strategies for Maximum Profit

    Triangle Patterns in Trading: Ascending, Descending & Symmetrical Guide

    Alexander

    What Is COTI? Payments, Token & Price Prediction

    What is a COTI coin

    Constantine

    Best Copy Trading Software in 2025

    Best Copy Trading Software in 2025

    Alex

    What Is an AI Agent? The Future of Finance Explained

    AI Agent Explained

    Constantine

    How to Start a Liquidity Provider Business?

    How to Start a Liquidity Provider Business

    Constantine

    How to Start a White Label Brokerage?

    How to start a white label brokerage

    Constantine

    How to Start a Multi-Asset Brokerage?

    How to Start a Multi-Asset Brokerage

    Hazem

    Crypto Ransomware – How They Happen and How to Avoid Them

    Crypto ransomware explained

    Constantine

    Best Web3 Browsers in 2025

    Best Web3 Browsers

    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
    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.