Bitcoin, the world’s leading cryptocurrency, has been experiencing a rapid price surge, reaching yearly highs and showing a 15% increase week-on-week. Investors and analysts are eager to understand the factors behind this rally and what may be driving it.
US Markets: Leading The Bitcoin-Led Rally
One significant development contributing to the bullish sentiment is the wave of exchange-traded fund (ETF) applications in the United States. These applications have injected optimism into the crypto markets, which regulatory uncertainties have battered in recent times.
A report by Kaiko reveals some interesting trends in the crypto space. Despite troubles faced by Prime Trust, TrueUSD (TUSD) has seen a soaring market share.
On the other hand, there has been an increasing number of delistings on exchanges, with the month of June witnessing a multi-year high in delisted spot instruments.
Offshore exchanges like Huobi and HitBTC have accounted for the majority of these delistings, while U.S.-based platforms, including Bittrex and Binance.US, have also seen a rise in delisted instruments due to charges of violating securities laws by the U.S. Securities and Exchange Commission (SEC).
In terms of market activity, Kraken has shown resilient liquidity, while Binance’s market share on derivative markets has dropped to pre-FTX lows. Binance, facing regulatory scrutiny, has struggled to maintain the same market share it enjoyed in the previous year.
Meanwhile, OKX has emerged as a winner among other exchanges in the derivatives market, experiencing an increase in market share.
Analyzing the spot market data, the ratio of Bitcoin to altcoin volumes on U.S. exchanges is nearly 50%.
It suggests that within U.S. markets, the rally is primarily led by Bitcoin and has been further boosted by the news of a BlackRock ETF filing, which has particularly bullish implications for institutional U.S. investors. However, Bitcoin accounts for only 33% of the market share on offshore exchanges.
Stablecoin volatility has also been on the rise, with stablecoins experiencing de-pegging events and U.S.-regulated stablecoins witnessing significant outflows, while Tether’s USDT and TrueUSD’s TUSD have reached all-time highs in market cap.
It’s worth noting that Bitcoin’s correlation with the tech-heavy Nasdaq 100 index has plummeted to just 3%, hitting its lowest level in almost three years.
Nevertheless, it indicates that Bitcoin has been outperforming tech equities in June, showcasing its potential as a separate asset class with reduced dependency on traditional risk assets.
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