September Selloffs Pushed down Crypto Prices, Trading Activity: eToro
- "Investors were clearly looking to take [some] profits,” says eToro analyst Simon Peters.
It has been a big year for crypto. Even though price drops and declines in trading volume may have characterized the past few weeks, Simon Peters, a market analyst for social trading firm, eToro, would like to remind traders to take the long view.
Despite the fact that “September was subdued, following an energetic August,” Peters said that “it is worth noting that every coin has performed positively in 2020, with software platforms such as Ethereum and Tron seeing respective gains of 160% and 84%.”
Indeed, “cryptoasset trading activity may be down for September, but they remain very much on the up when compared with 2019.”
On eToro, September Selloffs Pushed Trading Volume down across the Board
A report on eToro’s monthly trading figures found that in spite of September’s declines, Bitcoin, Ethereum, and XRP are still on top: the assets remained the platform’s top three most popular Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term for the second month in a row.
At the same time, Binance Coin (BNB) continued its climb up the ranks, with a move from the seventh to the fourth most-traded crypto asset from August to September.
However, trading volume was down across the board. Only one asset, NEO, saw an increase in trading that pushed its levels into the green. “The smart contract platform was traded 2% more in September than in August, an increase that pushed the crypto asset up to fifth place,” the report stated.
Simon Peters, market analyst and crypto expert at eToro.
Meanwhile, Tezos, which traded handsomely on eToro over the summer, dropped four places from August to September, eventually landing in eighth place. The descent marks the first time that TZX has fallen below the top five most popular assets “since the inception of the eToro monthly cryptoasset reports.”
Indeed, “Ripple’s XRP and Tezos were hit hardest by the dip in trading activity,” Mr. Peters explained, “whereas NEO, Binance Coin and Tron (TRX) fared slightly better. Going forward, cryptoassets TRX and ADA are likely to see upticks in activity as users look to take advantage of the staking rewards now available by holding these crypto assets on eToro.”
”Investors Were Clearly Looking to Take Some of These Profits.”
Mr. Peters explained that the decline in trading volume (and, perhaps, in price) could be explained by a desire to cash out before the end of Q3.
“With some exceptional gains made across a number of crypto assets over the last few months, investors were clearly looking to take some of these profits,” he said.
“There is reason to be cheerful for a number of crypto assets, however, with Bitcoin, in particular, displaying some positive on-chain metrics. Investors, therefore, could be holding cash before again dipping into bitcoin or other crypto assets should they feel they are embarking on another bull run.”
But, are further sell-offs in the future? “Whilst September was quiet, the sector never stays subdued for long, and an increase in Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term across the asset class could see trading activity pick up.”
It has been a big year for crypto. Even though price drops and declines in trading volume may have characterized the past few weeks, Simon Peters, a market analyst for social trading firm, eToro, would like to remind traders to take the long view.
Despite the fact that “September was subdued, following an energetic August,” Peters said that “it is worth noting that every coin has performed positively in 2020, with software platforms such as Ethereum and Tron seeing respective gains of 160% and 84%.”
Indeed, “cryptoasset trading activity may be down for September, but they remain very much on the up when compared with 2019.”
On eToro, September Selloffs Pushed Trading Volume down across the Board
A report on eToro’s monthly trading figures found that in spite of September’s declines, Bitcoin, Ethereum, and XRP are still on top: the assets remained the platform’s top three most popular Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term for the second month in a row.
At the same time, Binance Coin (BNB) continued its climb up the ranks, with a move from the seventh to the fourth most-traded crypto asset from August to September.
However, trading volume was down across the board. Only one asset, NEO, saw an increase in trading that pushed its levels into the green. “The smart contract platform was traded 2% more in September than in August, an increase that pushed the crypto asset up to fifth place,” the report stated.
Simon Peters, market analyst and crypto expert at eToro.
Meanwhile, Tezos, which traded handsomely on eToro over the summer, dropped four places from August to September, eventually landing in eighth place. The descent marks the first time that TZX has fallen below the top five most popular assets “since the inception of the eToro monthly cryptoasset reports.”
Indeed, “Ripple’s XRP and Tezos were hit hardest by the dip in trading activity,” Mr. Peters explained, “whereas NEO, Binance Coin and Tron (TRX) fared slightly better. Going forward, cryptoassets TRX and ADA are likely to see upticks in activity as users look to take advantage of the staking rewards now available by holding these crypto assets on eToro.”
”Investors Were Clearly Looking to Take Some of These Profits.”
Mr. Peters explained that the decline in trading volume (and, perhaps, in price) could be explained by a desire to cash out before the end of Q3.
“With some exceptional gains made across a number of crypto assets over the last few months, investors were clearly looking to take some of these profits,” he said.
“There is reason to be cheerful for a number of crypto assets, however, with Bitcoin, in particular, displaying some positive on-chain metrics. Investors, therefore, could be holding cash before again dipping into bitcoin or other crypto assets should they feel they are embarking on another bull run.”
But, are further sell-offs in the future? “Whilst September was quiet, the sector never stays subdued for long, and an increase in Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term across the asset class could see trading activity pick up.”