Crypto Volatility Index Newsletter — September 9th
The Crypto Volatility Index is presenting a new newsletter covering crypto volatility trends, trading and market analytics.
Application soon to be available via cvi.finance
Disclaimer: This is for educational purposes only — Nothing here is intended for trading advice or otherwise.
Bitcoin takes a tumble, while El Salvador adopts BTC as legal tender
A Bitcoin (BTC) bull run might have been in full swing, as analysts recently agreed that BTC/USD must hold steady at $50,000 to preserve the bullish sentiment. Yet BTC fell sharply on September 7, dropping below $43,000. Data from TradingView shows that the steep decline demonstrates one of the most volatile days for BTC to date.
But does this mean the bull run has come to an end? At the time of writing, Bitcoin was trading around $46,200. The price of Bitcoin may continue to go up in the coming days. Market analyst and Cointelegraph contributor Michaël van de Poppe tweeted that if BTC can manage to close above the $47,000–$48,000 range following this pullback, the move will be considered an outlier to the previously established trend and a good buying opportunity.
The crash aside, it’s notable that BTC reached an almost four-month high of $52,960 around the same time El Salvador announced Bitcoin as its legal tender on September 7. Although the BTC crash resulted in a liquidation of $3.54 billion worth of derivative contracts, Salvadoran President Nayib Bukele confirmed that his government bought the dip by buying 150 BTC during the sell-off.
It’s also impressive that Ether (ETH) broke through the $4,000 mark on September 3, as shown by data from TradingView. Other than that, ETH hasn’t surpassed $4,000 since mid-May. Although it has since declined from this peak, ETH is still up more than 300% year-to-date (YTD), trading at roughly $3,500 at the time of this writing.
There has also been a clear feeling of “alt season” across crypto markets lately, as a number of altcoins have surged to new all-time highs. For instance, Cardano’s ADA token reached a fresh record closing just above $3 on September 2, according to TradingView data.
Solana (SOL) also reached a record high of more than $194 on September 7 on TradingView. At the time of writing, SOL was trading at $174.49. Given the growing investor interest in non-fungible tokens (NFTs), combined with the success of DeFi, Solana has become the seventh most valuable project in the cryptocurrency space. Some investors even believe that Solana is a potential long-term rival to Ethereum, especially when considering lower gas fees and higher scalability.
Additionally, Polkadot (DOT) has been sustaining above its breakout level of $28.60, trading at $28.31 at the time of writing. According to analysts, if the price of DOT surpasses $33.84, the DOT/USDT pair could rally, moving toward $41.40 and potentially reaching its pattern target at $46.83.
Capitalizing on crypto’s volatility with push notifications
Volatility is a defining feature of the crypto market. Yet while some traders have made millions capitalizing on volatility, others have seen major losses. For example, the recent crash in bitcoin prices has left many traders feeling uncertain.
In order to help users profit from volatility, COTI’s Crypto Volatility Index (CVI)will enable Ethereum Push Notification Service (EPNS). EPNS is a decentralized notification protocol that allows users to receive notifications across any platform (i.e. mobile, tablet, web, user wallets, etc.).
While many crypto traders constantly check social channels like Twitter and Telegram to determine price fluctuations, missed opportunities can be abundant when only relying on these platforms. EPNS push notifications solve this challenge by providing timely market updates directly to a user’s device.
By enabling this feature on CVI, users will receive updates on unexpected changes in index value and revised information on arbitrage opportunities specifically for CVI arbitrageurs group.
They will also be notified regarding their margin positions if they are coming close to the liquidation threshold, and they will receive updates regarding market events that could affect the CVI.
You can read more about EPNS on CVI here.
CVI now on Dune Analytics
The DeFi ecosystem is about transparency and inclusion for all, which is why we are excited to announce that CVI is now available on the free crypto analytics platform, Dune Analytics. The public page we have featured there will allow users to follow specific data including deposits and withdrawals for ETH and USDT, total value locked for Ethereum and Polygon, and total fees earned by GOVI holders.
You can read more about this announcement here.
CVI meme contest results are in!
Given the constant ups and downs of the cryptocurrency market, memes have become a popular way of adding humor to sometimes stressful trading circumstances. CVI’s community on Discord has been especially active and engaged regarding meme sharing. As such, we decided to recently host a CVI meme contest, giving our winners a chance to win $GOVI.
For example, our first place winner was rewarded with 500 $GOVI for creating this meme:
You can see CVI’s other winning memes here.