- The total cryptocurrency market capitalization reached nearly $2 trillion
- Bitcoin's three-month realized volatility has fallen to 86%
- Ethereum reached new all-time high following Visa announcement
The last seven days saw another very positive week for altcoins, especially Ethereum which rose almost 20% and reached a new all-time high at 2,117 USD. Bitcoin was not able to keep the pace with smaller projects and continued its sideways move. The cryptocurrency market has achieved an incredible milestone following the breach of the $1.99 trillion mark in total market value last week. Today, the total cryptocurrency market capitalization has slightly decreased to 1.92 trillion while an average daily trading volume fell to $156.0 billion. Bitcoin's market dominance dropped to 56.3%.
Total market capitalization hit a new historical high. Source: CoinMarketCap
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JPMorgan analysts indicate that bitcoin's dramatic price swings are "subsiding," opening the door to greater interest from institutional investors. According to their research, a three-month realized volatility for Bitcoin decreased to 86%, after its rise to above 90% in February. The six-month realized volatility has fallen to roughly 73%. Analysts said: "In our opinion, a potential normalization of bitcoin volatility from here would likely help reinvigorate the institutional interest going forward which, as we had highlighted in our previous publications, slowed in Q1 vs the previous quarter." JPMorgan strategists believe that $7 billion of inflows into Bitcoin funds have come at the expense of gold, which has seen the $20 billion of outflows from ETFs that track the precious metal. If Bitcoin were to match the total private sector investment in gold, then its price would reach $130,000.
Meanwhile Bitcoin mining revenue reached the highest monthly total ever recorded in March, according to data compiled by The Block. Total bitcoin mining revenue jumped to $1.75 billion in March, of which $167.21 million (9.55%) accounts for transaction fees. In March, compared with February, there was a 28.7% increase in total revenue and 10.7% decrease in transaction fees.
Bitcoin mining revenue hit its all-time high in March. Source: The Block
Bitcoin has been trading in a local sideways move recently. Coin failed to break above the resistance at $59,514 and price pulled back to the support at $56,542. Should a break below occur, then downward move may accelerate towards next support at $52,700. On the other hand, if buyers will manage to halt declines here, then another upwards impulse towards the upper limit of the range or even all time high at $61,618could be launched. Source: xStation5
Visa allow fiat transaction settlement on Ethereum blockchain
Payment card network Visa has announced that transactions can be settled using USD Coin (USDC), a stablecoin powered by the Ethereum blockchain. This move means Visa has become the first major payments network to use stablecoin as a settlement currency. Until now, Visa settled payments in fiat currencies only.Meanwhile PayPal announced last week that users which own Bitcoin, Ether, Bitcoin Cash, and Litecoin in PayPal digital wallets can now convert their crypto assets into fiat currencies every time they make purchases."This is the first time you can seamlessly use cryptocurrencies in the same way as a credit card or a debit card inside your PayPal wallet," PayPal CEO and president Dan Schulman told Reuters.
Ethereum, the world’s second-most popular cryptocurrency, jumped to a new record high at $2117 last week which coincides with the upper limit of the ascending channel. However buyers failed to sustain the upward move and price pulled back. Also a bearish divergence appeared on the Momentum indicator, which might indicate that sellers are gaining control on the market. The nearest support lies at $1800 level. On the other hand, if buyers will manage to regain control and break above the aforementioned resistance zone, then the way towards the new all-time high will be left open. Source: xStation5
