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Bitcoin Revisits $13.5K After Posting Best Month Since April
After October's double-digit price gain, bitcoin may be looking at a short-term pullback.
Updated Sep 14, 2021, 10:26 a.m. Published Nov 2, 2020, 11:09 a.m.
Bitcoin's bulls are taking a breather after a double-digit price gain in October.
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- The leading cryptocurrency by market value is trading near $13,500 at press time, representing a roughly 2% decline on the day, according to CoinDesk's Bitcoin Price Index.
- The minor decline comes after last month's 28% rally, the biggest single-month gain since April.
- On Saturday, bitcoin had surged to a 33-month high of $14,093 but quickly fell back.
- Some analysts think a bigger pullback may be seen in the short term.
- "If we consider overbought daily technicals plus failure to beat the 2019 high resistance and a risk-off backdrop, it is perfectly reasonable to anticipate the possibility for a healthy decline ahead," Joel Kruger, a currency strategist at LMAX Digital, told CoinDesk.
- Bitcoin's failure to establish a foothold above the June 2019 high of $13,880 has validated the short-term bull fatigue signaled by the 14-day relative strength index (above left).
- As such, some technical traders may feel tempted to take profits, forcing prices lower.
- "There might be small corrections, as some market participants, who bought at lower prices, may exit the market," Ashish Singhal, CEO of cryptocurrency exchange CoinSwitch, said.
- Further, continued coronavirus-induced weakness in stock markets could trigger a global demand for cash, as seen in March, aggravating the technical pullback.
- Another source of risk for bitcoin is the U.S. presidential election on Tuesday, according to Singhal.
- Many fear that the results of the election will not be immediately clear, resulting in a period of uncertainty for the markets.
- All these factors considered, the possibility of bitcoin revisiting the former hurdle-turned-support of $12,500 cannot be ruled out.
- "Unless the market can establish above $14,000, there is a risk that rally stalls here in favor of a healthy retreat," Kruger said.
- While a pullback could be seen, analysts don't foresee a price crash, as the cryptocurrency currently has a strong bid from institutions, trader and analyst Nick Cote told CoinDesk last week.
- Disclosure: The author holds small positions in bitcoin and litecoin.
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Also read: $14K: Bitcoin Briefly Hits Highest Level Since January 2018
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Exchange Review - March 2025
CoinDesk Data's monthly Exchange Review captures the key developments within the cryptocurrency exchange market. The report includes analyses that relate to exchange volumes, crypto derivatives trading, market segmentation by fees, fiat trading, and more.
What to know:
Trading activity softened in March as market uncertainty grew amid escalating tariff tensions between the U.S. and global trading partners. Centralized exchanges recorded their lowest combined trading volume since October, declining 6.24% to $6.79tn. This marked the third consecutive monthly decline across both market segments, with spot trading volume falling 14.1% to $1.98tn and derivatives trading slipping 2.56% to $4.81tn.
- Trading Volumes Decline for Third Consecutive Month: Combined spot and derivatives trading volume on centralized exchanges fell by 6.24% to $6.79tn in March 2025, reaching the lowest level since October. Both spot and derivatives markets recorded their third consecutive monthly decline, falling 14.1% and 2.56% to $1.98tn and $4.81tn respectively.
- Institutional Crypto Trading Volume on CME Falls 23.5%: In March, total derivatives trading volume on the CME exchange fell by 23.5% to $175bn, the lowest monthly volume since October 2024. CME's market share among derivatives exchanges dropped from 4.63% to 3.64%, suggesting declining institutional interest amid current macroeconomic conditions.
- Bybit Spot Market Share Slides in March: Spot trading volume on Bybit fell by 52.1% to $81.1bn in March, coinciding with decreased trading activity following the hack of the exchange's cold wallets in February. Bybit's spot market share dropped from 7.35% to 4.10%, its lowest since July 2023.
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Solana CME Futures Fell Short of BTC and ETH Debuts, but There's a Catch
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- Solana's SOL futures began trading on the Chicago Mercantile Exchange (CME) on Monday, with a notional daily volume of $12.3 million and $7.8 million in open interest, significantly lower than the debuts of bitcoin (BTC) and ether (ETH) futures.
- Despite the seemingly lackluster debut, when adjusted to market value, SOL's first-day figures are more in line with BTC's and ETH's, according to K33 Research.
- Despite the bearish market conditions, the launch of CME SOL futures offers new ways for institutions to manage their exposure to the token, said Joshua Lim of FalconX.
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