Why the crypto market is getting volatile right now

The trading week began with a substantial rebound in the Nasdaq-100 and the S&P 500.

The trading week started with a substantial rebound in the Nasdaq-100 and the S&P 500. The crypto market could also benefit from this rebound move and partly break away from the lows of last week. Bitcoin stabilized again near USD 18,150 last Thursday and then recovered toward the psychologically important USD 20,000 level. Despite the unchanged strength of the US dollar index DXY, the crypto sector continues to show notable resilience against challenging economic developments. According to blockchain analytics firm Glassnode, the so-called Future Open Interest, i.e., the total number of long and short bets, hit an all-time high, while liquidations of leveraged bets declined to an all-time low, signaling an upcoming rise in volatility in the crypto market.

Quarterly results in the US are likely to drive volatility

Alongside new inflation data from Europe tomorrow, Wednesday, investors are awaiting quarterly results from major US industrial leaders like Netflix and Tesla. If the latest reports are well received by the market and the traditional financial market extends its recovery, this should also have a positive effect on the crypto market.

Can Bitcoin follow the rally of mining company Marathon Digital Holdings Inc.?

The price action of the big Bitcoin miners Marathon Digital Holdings Inc. was also positive. From last Thursday's weekly low, the stock managed a remarkable 29% gain over three trading days. Even before Bitcoin's most recent price rally in the summer months, the Bitcoin mining stock already signaled an early bullish move, which Bitcoin followed with a short delay.

The total market capitalization recovered in the past few trading days from a week-low of USD 833 billion and sits at USD 889 billion, in the same range as last week.