Here is what you need to know on Tuesday, June 2, 2020.
Volatility appears to be back in the market following Monday’s price action. The total market capitalization has shot up to $283 billion at the time of writing compared to $269 billion at the close of Monday’s session. The volume also saw a sharp increase to $122 billion.
Bitcoin was the biggest contender in the bull-run as it shot above the psychological $10,000 level. Moreover, gains extended in a flash rise to $10,410, however, an immediate reversal has pulled Bitcoin below $10,206 (opening value). At the time of writing, Bitcoin is trading at $10,094 after a subtle 1% loss on the day. The existing trend is bearish while the volatility low. This means that Bitcoin could defend support above $10,000 as buyers focus on higher levels towards $10,500.
Ethereum was not left behind the bullish wave. The second-largest crypto posted gains above the coveted $250 level. A new monthly high was reached at $252 before bears swung in for revenge. Ether is currently trading at $248 as the bullish trend builds. Unfortunately, low volatility limits the magnitude of gains.
Ripple has for the first time in more than two weeks corrected above $0.21 (seller congestion zone). The price action above $0.20 was in tandem with Bitcoin’s rise above $10,000. An intraday high has been traded at $0.2121 (now immediate resistance). XRP/USD is valued at $0.2116 while dealing with low volatility. The next key hurdle is at $0.22 and is achievable as long as bulls hold above $0.21.
The cryptocurrency market is generally in the green. However, some of the most improved cryptoassets include Bitcoin Cash (7.28%), Crypto.com Coin (8.89%), NEO (7.50%), Ontology (8.92%), VeChain (16.49%), OMG Network (13.89%), DigiByte (8.29%), Zilliqa (10.66%), Nexo (21.65%) and Loopring (18.60%).
Chart of the day: BTC/USD daily
It has been reported that Grayscale, a cryptoasset management company has been on a buying spree for the largest crypto by market capitalization, Bitcoin. Grayscale has a $2.5 billion Bitcoin Trust. The firm has been focused on expanding the trust since the reward halving in May. Recent research found that Grayscale has been buying at least 150% of the BTC being mined. The move by Grayscale to buy Bitcoin seems to be attracting other retail investors who want to capitalize on the potential bull-run. For now, Bitcoin supply and demand is at a solid equilibrium.
Ripple’s On-Demand Liquidity volume has continued to flourish, especially in Australia. The transaction volume for the XRP/USD pair hit a record all-time high of 15,640,530 AUD on one of the exchanges, BTC Markets. The XRP liquidity in Australia has been recording impressive volume since January. However, the same cannot be said in regard to XRP price which has remained flat accept for the breakout above $0.21 on Monday.
According to an announcement by BitMEX, one of the leading crypto derivatives platforms, BCH/USD quanto perpetual swap contracts will soon hit the market. For BitMEX, this development will bring the number of quanto contacts to four. The contract will offer users up to 25x leverage. It is expected to debut in the market on June 16. Ethereum quanto contract was introduced on May 5 while XRP swap contract debuted earlier on February 5.
Western Union, a cross-border payments platform is reported to have made a takeover offer to another payment platform, MoneyGram. Reporting the matter, Bloomberg cited a source familiar with the deal saying “no final decision has been made and Western Union could opt to not proceed with a potential deal, the person said.”
MoneyGram is already collaborating with Ripple for the use of the On-Demand Liquidity platform. Ripple also owns a 9.95% in MoneyGram, therefore, if the deal sails through, Western Union would automatically be involved in the crypto industry.