Market Wrap: Bitcoin Loses Steam at $ 15.9,000; Over 600,000 ETH torn from DeFi
A Bitcoin rally to new highs in 2020 was slowed down by a lower spot volume. Meanwhile, some Ether investors are pulling capital out of DeFi.
- Bitcoin (BTC) is trading at around $ 15,502 as of 9:00 PM UTC (4:00 PM ET). Increase of 2.6% in the last 24 hours.
- Bitcoin's 24-hour range: $ 15,190 to $ 15,934
- BTC near its 10-day moving average but above the 50-day average, a sideways signal for market technicians.
Bitcoin trading on Bitstamp since November 4th.
Bitcoin's price spike stalled on Friday after generating gains over the past 24 hours, mostly at $ 15,934, according to CoinDesk 20 data. At the time of going to press, the price was trading at $ 15,502.
"BTC has been bullish over the past four weeks, rising incredibly from $ 10,000 to $ 15,000," said Ian Balina, CEO of analytics firm Token Metrics. "This month's rally is similar to the previous major rally in 2017, when BTC rose from $ 6,000 to nearly $ 20,000 in November and December."
The last time Bitcoin price was at this level was on Jan. 7, 2018, when its 24-hour low was $ 15,632, a fall from the daily high of $ 16,861 during a general market sell-off, according to CoinDesk 20.
Daily Bitcoin trading on Bitstamp since 2017.
"The next level of resistance is between $ 16,000 and $ 17,000," added Balina. "If it flies like this, it can retest its all-time high and potentially rise above $ 20,000."
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A higher Bitcoin price hike will likely require the return of an above-average spot volume. Volume for Friday was much lower than Thursday, which was the highest daily average volume day since July 27 at $ 1,569,081,137. That summer day, it hit $ 1,579,784.44 on major USD / BTC spot exchanges. At the time of going to press, the spot exchange volume on Friday was $ 1,064,734,786.
Bitcoin volume on major USD / BTC spot exchanges over the past six months.
Source: Shuai Hao / CoinDesk Research
Thursday's open interest in Bitcoin futures hit a record high on August 17th. “The longer-term trends remain very optimistic. The open open interest in Bitcoin futures is at an all-time high of $ 5.7 billion, and interest rates on perpetual swaps are rising, "said Jason Lau, chief operating officer of the San Francisco-based exchange OKCoin.
Bitcoin futures are open for the past year.
"The little retreat is normal and healthy today," Lau told CoinDesk. “In the past, Bitcoin has seen strong, rapid moves and withdrawn a lot more. I would check if BTC can settle in and build a base before moving up again. "
The dominance of Bitcoin, a measure of the market capitalization of the world's oldest cryptocurrency as a percentage of total crypto assets, is beginning to decline. After rising steadily to 65.5% in October and early November, it fell on Friday.
Hourly Bitcoin Dominance Table since early October.
Jean-Marc Bonnefous, managing partner of investment firm Tellurian Capital, said Bitcoin could lose some momentum after its stratospheric price surge, adding that some investors are taking profits and putting them into alternative cryptocurrencies or altcoins.
"BTC has already done some upward work and needs to take a break," said Bonnefous. "At some point, the rotation from BTC to these heavily sold alt-tokens will take place again."
Aether trapped in DeFi falls off
The second largest cryptocurrency by market cap, Ether (ETH), rose on Friday, trading at $ 442, and rose 7% in a 24-hour period at 7:00 a.m. (4:00 p.m. ET).
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Since October 20, when the amount of ether in decentralized finance (DeFI) was 9,211,000 ETH, investors have been pulling out the cryptocurrency. According to the data aggregator DeFi Pulse, more than 642,000 ETH were removed from DeFi at the time of going to press, to 8,569,000 ETH.
Amount of ether trapped in DeFi last month.
Source: DeFi Pulse
The trend follows the rocky past 30 days for aether trapped in DeFi as the amount of aether in DeFi was 8,423,000 ETH about a month ago. Vishal Shah, options trader and founder of the Alpha5 derivative, says the spins of ether have to do with the ethereal nature of Ethereum's DeFi products.
"Most of the ETH banned in DeFi is collecting or accumulating tokens that have no lasting value," noted Shah. "And as those levels dropped dramatically, the" APY "(annual percentage recovery) that was used as bait for pool participation naturally began to wane."
Digital assets on CoinDesk 20 are all green Friday. Notable Winners as of 9:00 PM UTC (4:00 PM ET):
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- Oil was down 2.8%. Price per barrel of West Texas Intermediate Crude: $ 37.39.
- Gold was in the green at 0.14% and at $ 1,952 at press time.
- US Treasury bond yields all rose on Friday. Yields, moving in the opposite direction as price, rose the most on the two-year bond, rising to 0.159% and in the green to 9.6%.
The CoinDesk 20: The assets that matter most to the market