On the 27th, the US Futures Commodity Trading Commission (CFTC) announced that it would sue Binance and its CEO Changpeng Zhao (CZ) for providing unregistered cryptocurrency Derivatives transactions to US users. It fell below $27,000 at one point, and fell as low as $26,508 at the deepest point.
However, Bitcoin (BTC) did not continue to fall because of this. Instead, it rebounded significantly today after gaining a firm foothold, and once rose above $28,500 in the evening. Before the deadline, it was reported at $28,341, an increase of 5.6% in the past 24 hours, and Ethereum ( ETH ) also rose 5.4% to $1,821 in the past 24 hours.
Bitfinex: Institutions enter the market, Bitcoin trading volume returns to bull market levels
At the same time, Bitfinex analysts released a newreport saying that the market may now be in the early stages of a "Bitcoin bull market." He further explained that the volume of Bitcoin Derivatives transactions has increased faster than the volume of spot transactions, which has pushed up the volatility of Bitcoin prices, and the volume of options transactions has also increased, indicating that institutional investors are increasingly participating market.
According to a Bitfinex report, the 7-day moving average of the exchange's bitcoin trading volume climbed to about $24 billion last week, the highest level since mid-2021, when it was near the end of the bull market.
In the Derivatives, although the month has not yet ended, the trading volume of Bitcoin futures on the exchange has reached nearly 1 trillion US dollars so far, setting a new high since September last year; in addition, the open interest of Bitcoin options also climbed to 12.14 billion U.S. dollar, underscoring institutional investors are becoming increasingly active in the market.
This may be the early stages of a bull market
As such, the Bitfinex analyst wrote:
We can speculate that we may be in the early stages of a bull market, and that historically, increased speculation and the emergence of new market participants have coincided with the final stages of a bear market.
Bitfinex analysts reminded that although the surge in trading volume may make investors excited, but with increased volatility, greater risks will come with it, but the analyst also mentioned:
Long-term Bitcoin holders Spend-Out Profit Ratio (SOPR) has now returned to levels greater than 1 on multiple timeframes, indicating tokens are moving at a profit and long-term Bitcoin holders are selling Bitcoin in current market conditions The behavior of the currency is consistent with the trend during the previous bear market, which is a positive signal for the market.