Market Wrap: Bitcoin Holding at $ 18,000; Lively Ethereum will handle 140% in 2020
Bitcoin battles for profit as an expected low volume weekend could push the price further down. The increasing number of active Ethereum addresses this year is evidence of the network's growth.
- Bitcoin (BTC) starts trading at $ 18,019 as of 9:00 PM UTC (4:00 PM ET). Slip 2% in the last 24 hours.
- Bitcoin 24-hour range: $ 17,593 to $ 18,404 (CoinDesk 20)
- BTC is slightly above its 10-hour moving average but below the 50-hour average on the hourly chart, a sideways signal for market technicians.
Bitcoin trading on Bitstamp since December 8th.
Bitcoin price fell to just $ 17,593 on Friday, according to CoinDesk 20 data. The price has recovered somewhat and is hovering around the $ 18,000 area. At press time, it was $ 17,962.
Continue reading: Bitcoin whales buy cheap, sell high; Retail investors follow rallies: data
"BTC appears to have lost momentum," said Misha Alefirenko, co-founder of VelvetFormula, a liquidity provider for digital assets. "If buyers don't step in soon, we may see a test of the $ 16,400 to 16,900 range over the weekend."
Friday is set to be a better day in terms of volume, totaling over $ 1 billion for the eight major exchanges that CoinDesk 20 is tracking at press time. On Thursday it was $ 965 million. However, according to CoinDesk 20, weekends almost always have lower volume, for example the daily average of $ 578 million last weekend.
Volume on major bitcoin spot exchanges last month.
Source: Shuai Hao / CoinDesk Research
"It's a pretty balanced market right now as the new institutional inflows have come with profit-taking by some of the existing major players and increased protection for miners," said Jean-Marc Bonnefous, partner at investment firm Tellurian Capital.
Continue reading: MicroStrategy's bitcoin-driven offering rose to $ 650 million
The derivatives market is also a factor, according to Bonnefous. "There is great concentration around the $ 16,000 strike for the BTC options expiration on December 25th, which acts as a polarizing target in the short term," he said. The $ 16,000 strike is the third most popular strike point in the Bitcoin options market, based on data from aggregator Skew.
Bitcoin options attract interest by striking.
"We are now seeing public companies like MicroStrategy leveraging leverage to get a bigger position in Bitcoin," said Michael Gord, CEO of Quant crypto company Global Digital Assets.
The historical price development of Bitcoin over the past year.
Source: CoinDesk 20
The December lull may continue, but many analysts have raved about Bitcoin's potential in 2021. "Next year, when the annual budgets reopen, I expect a huge surge in demand from corporate and institutional investors in the industry," said Gord of Global Digital Asset.
"Macro issues, and in particular Brexit-related risks, can shake stock markets and potentially lead to the US dollar appreciating," said Denis Vinokourov, head of research for Crypto Brokerage Bequant. Equity markets fell globally on Friday due to macroeconomic uncertainties.
"Given Bitcoin and broader digital resources this year following the COVID-19 pandemic and the US elections, we can expect Bitcoin to exhibit similar resilience," added Vinokourov.
Ethereum is actively addressing uptrend in 2020
Ether (ETH), the second largest cryptocurrency by market cap, fell on Friday, trading at $ 548 and falling 3.1% in 24 hours from 9:00 PM UTC (4:00 PM ET).
The number of active addresses on the Ethereum network rose as of December 10th from 158,039 on January 1st to 379,249, which is an increase of 140%.
Active addresses on the Ethereum network in 2020.
Bequant's Vinokourov told CoinDesk that along with metrics showing the movement of Ethereum users from centralized exchanges (CeFi) to decentralized exchanges (DeFi), this data represents a tremendous liquidity opportunity for token economies in this ecosystem.
Continue reading: This one graphic shows the ether switching from CeFi to DeFi: Glassnode
"According to Glassnode data, the amount of gas fees that were spent on ETH deposits on centralized exchanges fell from around 26% at the end of October 2017 to less than 1%," said Vinokourov. “The market has sufficient liquidity. Therefore, DeFi tokens look particularly attractive despite the recent drawbacks. "
Digital assets on CoinDesk 20 are mostly red Friday. Notable Winners as of 9:00 PM UTC (4:00 PM ET):
- Oil was down 0.82%. Price per barrel of West Texas Intermediate Crude: $ 46.57.
- Gold was in the green at 0.14% and at $ 1,838 at press time.
- The US 10-year Treasury yield fell to 0.890 on Friday and was in the red by 1.3%.
The CoinDesk 20: The assets that matter most to the market