Bitcoin’s volatility remained at record lows until July 24th. Ethereum is also back at USD 300.
Both Democrats and Republicans in the USA have been preparing a second stimulus package for the economy. On July 21st, the Republican Senate leader, Mitch McConnell, officially supported a new issuance of checks to help the population.
No one yet knows the details of the amount of aid for this second round. However, the Democrats proposed a bill in the Lower House last May. It included a second USD 3.2 trillion stimulus package.
The confirmation of this significant increase in liquidity, possibly before November, brought the price of gold to a record high on July 24th, which exceeded USD 1,900 per ounce. This could also have moved investors to Bitcoin as a safe-haven asset, given the foreseeable deterioration of the US dollar, which managed to push it above USD 10,000.
On July 21st, Bitcoin began to rebound when it recorded a 3% rise to exceed USD 9,400. Besides, it continued with a gradual increase during that week, to exceed USD 9,500 on July 24th. After clearly breaking the resistance of USD 9,700, the price of Bitcoin exceeded USD 10,200 on July 27th.
Altcoins have reemerged during Bitcoin’s recent low volatility period. Traders have turned to altcoins facing a relatively stable behavior of the main cryptocurrency. The reason for this is that low volatility does not provide the action that they are looking for. Until now, Bitcoin’s dominance has dropped from 67.5% to 60.9% in July; there has been a 9.47% increase in the capitalization of altcoins and only 4.2% in that of Bitcoin.
Ethereum Is Back at USD 300
Amid the resurgence of altcoins, Ether appreciated by 34% in the past month and its price at the time of writing is USD 308. The number of its active addresses has doubled since January. In July, the total locked value in DeFi applications went from USD 2 billion to USD 3 billion in two weeks.
According to Etherscan and DeFi Pulse, the total locked value in DeFi has exceeded USD 3.6 billion in just five days. This suggests that it would be possible to achieve a new milestone this month.
Ethereum is in an interesting transition from a technical point of view; given the expected update of its network. Furthermore, the explosive boom in decentralized finance (DeFi) has led to the development of the network that was unthinkable 5 years ago. Ethereum hosts almost a thousand ERC-20 tokens, which together outperformed Ether, in terms of market capitalization.
Bitcoin Is Highly Valued in Latin America
In recent days, the trading volume of Bitcoin on P2P platforms in Argentina exceeded USD million. At the same time, Mexico and Uruguay recorded all-time BTC trading volumes on LocalBitcoins and Paxful.
For its part, Mexico exceeded USD 636,000 on LocalBitcoins in one week. The Mexicans moved more than USD 56,000 worth of Bitcoin on Paxful. Both cases represent all-time highs for the country.
Uruguay also exceeded its all-time trading volume on the two platforms. On LocalBitcoins, movements from Uruguay were above USD 48,400 in that period.
By Alexander Salazar