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Binance trading report for September 2020

By October 14, 2020 No Comments

The cryptocurrency market was rising in previous months, but September was different and bitcoin declined by 7.5% during the month. Bitcoin is still the king of the cryptocurrency market and practically all altcoin movements are under influenced by the Bitcoin price action. Therefore, it’s no surprise that the crypto market as a whole was bloody in September.

At the same time, there was a pullback in the equity and gold markets. This pullback in traditional markets influenced bitcoin and it declined to a low of $9,800 dollars. The greenback was an exception in this space and it recovered from its previous decline. There were a lot of reasons for this recovery, including the impending elections, the resurgence of the pandemic, and so on.

Bitcoin futures experienced a sharp fall on Binance. Most of the trading activity was done for protection and risk management during this period. DeFi certainly wasn’t spared in this environment and most decentralized finance platforms experienced huge corrections. For instance, Sushiswap lost around 70% of its value in September.

A large sell-off occurred and it created a buying opportunity for long-term investors. When “weak hands” are not delighted with the situation, the pullback will be a great chance for smart long-term investors.

Opportunities in the heart of this correction

Despite the bloody market, there were huge opportunities for traders during this month. For example, UNI increased by over 1,000% on its first day on Binance. The exchange listed UNI on both its spot and futures markets and it turned out to be a smart move from Binance. At the moment, Binance is the leading exchange for futures, and some famous tokens like UNI and LINK are available in this exchange.

Binance’s ability to provide an extensive set of products has surged the market share of this popular exchange. In all market conditions, traders have can find opportunities on Binance, thanks to the exchange’s extensive diversification of its trading products.

Low volatility and high trading activity

Binance Futures experienced more than $176 billion in volume during September. Despite the downward trend of volume in September, daily volume on Binance Futures was above $5.7 billion on average. Open interest displayed a similar trend – it fell at first and then recovered gently.

Altcoins` dominance regarding open interest

Bitcoin’s open interest decreased from 53% to 42% in September. The volatility of BTC also declined to a new low this month. As such, we experienced open interest progress for Altcoins. This situation may mean that traders are hunting Altcoins at cheap prices. Most of the Altcoins were undervalued in this situation and it was a good chance to acquire some of them.

A positive trend for bitcoin

It seems that many traders and investors aren’t disturbed by the recent sharp fall and they think corrections are natural in markets. A rally won`t continue in a sharp line and corrections should happen in this space. Overvalued prices are adjusted during healthy corrections and it means some great buying opportunities for professional traders and investors.

In the 2017 market, there were plenty of corrections, but the rally continued and Bitcoin ultimately reached its all-time high. Defi gradually recovered after the large sell-off and at the moment, Uniswap has the most locked value in this space. Maker, Aave, and Curve Finance are respectively in other places.

Despite the recent downturn, many investors are optimistic about the future of crypto assets. According to fundamentals, this market can grow more and macroeconomic trends can represent a good future for bitcoin. The US dollar is an important factor in this space and its weakness can be good for bitcoin. When there is persistent selling of the dollar, another alternative like Bitcoin will be considered more broadly.

Final thoughts

Diversification is important in the crypto space and we see that a successful exchange like Binance offers a wide variety of products. This variety can help traders to have access to opportunities all the time. Bitcoin’s long-term prospect is bullish and corrections are necessary and vital. These corrections will provide amazing buying opportunities for intelligent traders. The DeFi sector is a revolution in the crypto space and we have experienced a huge sell-off in this sector. Maybe this represents a good chance to buy some DeFi tokens in this recovering market, but nothing is sure and the crypto space is full of risks. Everyone should consider these risks carefully and do their research.