BitPlus Capital Broker Reveals Bitcoin Soars Above $26,400 as Positive US Unemployment Data Boosts Market

  • August 3, 2023 11:00 AM
  • Grand News Network

The cryptocurrency markets experienced a surge on Friday, driven by positive weekly unemployment data in the US. Bitcoin and Ethereum both saw gains, with BTC rising 0.93% to $26,450 and ETH surpassing the $1,800 mark.

According to BitPlus Capital’s crypto expert Maxim Buznikin, the cryptocurrency markets saw a major uptick on Friday as positive weekly unemployment data in the US helped boost investor sentiment. Bitcoin (BTC) and Ethereum (ETH) both saw gains, with BTC rising 0.93% to $26,450 and ETH surpassing the $1,800 mark.

BTC, the top cryptocurrency for a considerable period, encountered a decline in its trading volume within the last 24 hours. The volume stood at approximately $12.66 billion, down 20.62%. Despite this, the overall market was able to maintain its positive momentum.

Crypto markets have been trading sideways in the last 24 hours, but the slight increase can be attributed to the encouraging weekly unemployment data in the US. Investors have been closely monitoring economic indicators to gauge the global economy’s health, and any positive news can significantly impact the cryptocurrency markets.

Bitcoin’s Rise Amidst Positive Economic News

Bitcoin, often regarded as digital gold, has been the focal point of the cryptocurrency markets. The recent rise in BTC’s price can be attributed to the positive weekly unemployment data in the US. Investors are growing more confident in the overall market outlook as the world’s largest economy displays signs of recovery.

Ethereum Crosses $1,800 Threshold

Ethereum, the cryptocurrency with the second-largest market capitalization, experienced increases as it surpassed the $1,800 threshold. ETH has been gaining popularity due to its smart contract capabilities and the growing interest in decentralized applications (DApps). The positive market sentiment and the ongoing development in the Ethereum ecosystem have contributed to its upward trajectory.

Trading Volume Decline

While the cryptocurrency markets experienced an overall increase, BTC’s trading volume declined by 20.62% in the past 24 hours. This decrease in volume could be due to various factors, including profit-taking by traders or a temporary slowdown in trading activity. However, it is important to note that trading volume can fluctuate rapidly, and short-term dips do not necessarily indicate a bearish trend.

Sideways Movement in Crypto Markets

The cryptocurrency markets have traded sideways in the last 24 hours, with minor price fluctuations. Sideway movement refers to a period of relatively stable prices where the market is neither in a clear uptrend nor a downtrend. This type of consolidation often precedes a significant price movement in either direction, and investors are closely watching for any potential breakout.

Impact of Economic Data on Cryptocurrency Markets

Economic data, such as the weekly unemployment data in the US, can significantly impact the cryptocurrency markets. As cryptocurrencies gain mainstream recognition and adoption, they become more intertwined with the global economy. Positive economic news tends to boost investor sentiment and increase investment in cryptocurrencies. Conversely, negative financial indicators can trigger a sell-off as investors seek more stable assets.

The Rise of Decentralised Finance (DeFi) and Stablecoins in the Cryptocurrency Market

The cryptocurrency market has grown substantially in recent years, with different sectors gaining momentum. In particular, the decentralized finance (DeFi) sector and stablecoins have emerged as key players, contributing to the overall growth and stability of the market.

The Growing Dominance of DeFi:

The total volume in DeFi has reached an impressive 1.73 billion, representing 6.23% of the whole crypto market’s 24-hour volume. That highlights the growing popularity and adoption of decentralized finance platforms. DeFi allows users to engage in various financial activities, such as lending, borrowing, and trading, without intermediaries. This decentralized nature not only promotes transparency but also provides users with greater control over their assets.

Stablecoins: The Backbone of Crypto Trading:

Stablecoins, on the other hand, have gained significant traction in the crypto market, accounting for 92.73% of the total crypto market 24-hour volume. Stablecoins are digital currencies that maintain a steady value by being linked to stable assets, such as the US dollar or other commodities. Their primary purpose is to provide stability and reduce the volatility typically associated with cryptocurrencies. By maintaining a fixed value, stablecoins enable users to hold and transact with a digital asset that closely mirrors the value of traditional currencies.

The Impact of DeFi and Stablecoins on the Market:

The rise of DeFi and stablecoins has profoundly impacted the overall cryptocurrency market. Firstly, DeFi has introduced a new level of financial inclusivity, allowing individuals worldwide to access financial services that were previously limited to traditional banking systems. That has opened opportunities for unbanked populations and created a more inclusive financial ecosystem.

Secondly, stablecoins have addressed one of the major concerns surrounding cryptocurrencies: price volatility. By providing a stable value, stablecoins offer a gateway for individuals and businesses to participate in crypto trading without fearing sudden price fluctuations. That has attracted more mainstream adoption and institutional interest in the crypto space.

Future Outlook for Cryptocurrency Markets

Cryptocurrencies are digital currencies valued as stable assets, like the US dollar or other commodities. Additionally, ongoing developments in blockchain technology and regulatory advancements are further driving the growth and acceptance of cryptocurrencies.

Conclusion

The cryptocurrency markets experienced a surge on Friday, driven by positive weekly unemployment data in the US. Bitcoin and Ethereum both saw gains, with BTC rising 0.93% to $26,450 and ETH surpassing the $1,800 mark. While BTC’s trading volume decreased, the overall market sentiment remains positive. Economic data plays a crucial role in shaping the cryptocurrency markets, and investors closely monitor global indicators. As the market continues to evolve, the future outlook for cryptocurrencies remains promising.

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Media Contact

Organization: BitPlus Capital

Contact Person: Media Relations

Website: https://bitpluscapital.com/

Email: support@bitpluscapital.com

Country: Switzerland


Release Id: 0308235238

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