Connect with us
Active Currencies 13547
Market Cap $2,758,767,968,831.90
Bitcoin Share 49.71%
24h Market Cap Change $-1.22

Here’s why Bitcoin’s 2021 price rally is 130% better than that of 2017

2min Read
Why the 2021 price rally is 130% better than 2017

Share this article

The 7-day average BTC volume on leading spot exchanges are now above $10 billion for the first time in Bitcoin’s history. On Jan 7, 2021, the daily volume reached an ATH of $13.8 Billion. This is 130% higher than the peak from Dec 2017 of $6 Billion based on data from Arcane Research.

Apart from the fact that your financial advisors and wealth managers are more likely to have crypto conversations, Bitcoin’s trade volume and OI on regulated exchange CME is also rising. CME launched Bitcoin futures in mid-December 2017, and the crash followed closely after.

Why the 2021 price rally is 130% better than 2017

CME Bitcoin Futures || Source: CME Group

However, in Jan 2021, there is a near exponential rise in the BTC futures trade volume. With the ring-fencing approach taken by exchanges in Asia, India, increasing trade volume on CME assures that there may be regulatory approval soon enough, boosting trader’s sentiment. Though AssetDash ranked Bitcoin in the 7th place on its top assets list, the price rally and the increasing investment flow are adding to the digital gold narrative and not the asset class one, unlike 2017.

While Bitcoin’s 2017 rally was about selling and exiting at the right price point, this one is about HODLing. Scott Melker on Twitter commented about how he is done trading and Bitcoin’s current market is what he was trading for. This is the sentiment across spot exchanges, however, retail traders may have stopped the frequency of day trades but selling is still on, by retail traders.

Why the 2021 price rally is 130% better than 2017

Source: Twitter

If this is what day traders have waited for, the current price rally is 360 degrees different from 2017. Institutionalization has introduced both volatility and maturity to the current Bitcoin market. Another interesting contrast between the two price rallies is the OI. Though leverage ratio across exchanges has dropped, OI has increased consistently with the price. With every spike in price, several long and short positions are liquidated on BitMEX, however, retail traders are opening more positions and OI is high. 

Why the 2021 price rally is 130% better than 2017

BTC Options open interest || Source: Skew

The open interest hit a peak of $10.5 Billion, and it has dropped close to $8.5 Billion on top derivatives exchanges. In the ongoing price rally, there is a possibility of OI rising above the previous ATH of $10.5 Billion. The 2021 price rally is a long one compared to the 2017 rally, statistically, it can be said to be 130% bigger and better. 

Share

Ekta is a full-time journalist at AMBCrypto and her specialization lies in spot markets. Currently pursuing her MBA, she is passionate about trading, fintech, and everything decentralized.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.