Retail spring

Two signs the retail frenzy for Bitcoin and cryptocurrency has returned, market overview and news compilation

Two metrics, the “Kimchi” South Korean Bitcoin premium, and Bitcoin futures premiums (basis) may hint that retail excitement is back after a long period of institutional dominance:

Bitcoin futures prices on off-shore retail oriented Bitcoin derivatives exchanges are right now close to 30% annually, with the September Bitcoin contract trading above $63,000 at the time of writing, another sign of retail excitement. Meanwhile the basis in institutional-oriented CME has been dropping, as seen above.

Binance, which has continued to dominate the bitcoin futures market over the last year, has seen a record futures basis in the last week.

Open interest in Bitcoin future and perpetual contracts reached a new record of $23.73 billion on April 3th, and the total cryptocurrency futures market hit a record $5.7 billion worth of open contracts on April 6th. Trading volumes have been stable in the last few weeks as speculators await a breakout.

Bitcoin’s network now transfers $137,000 per second around the world with the median transaction size being around $500.

March 2021 has been the most successful month ever for Bitcoin miners, who mined $1.5 billion worth of Bitcoin, with the price of mining per-coin estimated to be below $20,000.

Due to the current shortage in Bitcoin mining rigs, “delivery of new mining equipment is estimated to November 2021 and January 2022. Meaning that we are likely to experience a large growth in hashrate as we enter 2022. This is similar to what we saw in 2018, when the hash rate soared even though bitcoin was in the midst of a dreadful bear market,” wrote Arcane Research.

Bitcoin’s mining difficulty hit a new all time record, reflecting network security and Bitcoin mining power around the world.

And to end of a very positive note, the chart above from Bianco Research shows Bitcoin’s market capitalization compared to the S&P composite of 1500 banks since 2016.

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