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Bitcoin has performed well in the face of a grim news cycle as stablecoin assets in the crypto ecosystem continue to grow.
- Bitcoin (BTC) traded around $ 10,515 at 20:00 UTC (16:00 ET). Down by 0.44% compared to the previous 24 hours.
- Bitcoin 24 Hour Range: $ 10,362- $ 10,667
- BTC above its 10-day moving average but below 50 days, a sideways signal for market technicians.
Bitcoin’s price stumbled in the early hours of Friday, dipping as low as $ 10,362 on spot exchanges like Coinbase around 5:00 UTC (1 am ET) before climbing to $ 10,515 at press time.
Despite the steady stream of negative news over the past week, cryptocurrency markets have remained resilient, according to Zachary Friedman, chief operating officer at brokerage Global Digital Assets.
“If we look back, we saw a Kucoin hack, a major BitMEX lawsuit and even problems in traditional markets through the announcement that [U.S. Pres. Donald] Trump contracted COVID-19, “Friedman said.” Historically, these three collective events would have rocked the markets. This shows that the market is increasingly filled with more bullish investors. [who] believe in the fundamentals. “
Bitcoin’s drop to $ 10,362 on Friday is its lowest price since September 24, well before the recent torrent of bad news began and perhaps a sign of the world’s oldest cryptocurrency’s ability to recover quickly.
Jean-Baptiste Pavageau, partner of the cryptocurrency firm ExoAlpha, predicts an increase in volatility in the future. “Liquidity is a key metric for professional traders,” Pavageau said. “Although BitMEX has witnessed sometimes unusual price behavior on its exchange, it wouldn’t be surprising to see more of these spikes and crashes as liquidity runs out.”
Read more: BitMEX moves $ 337 million in Bitcoin before first withdrawals after debits
In fact, BTC / USD’s open interest on BitMEX, a measure of liquidity on derivatives trading, has declined since the disclosure of its legal woes, going from $ 589 million just before Thursday’s news to $ 461 million at the time of the print, a drop of 21%. .
As open interest on BitMEX decreases, investors are shifting more and more bitcoins to other exchanges. At one point, an outflow of more than 11,000 BTC went to other exchanges at 01:00 UTC on Friday, including 4,786 BTC to Binance, 3,899 BTC to Gemini and 989 BTC to Kraken, according to data analytics firm CryptoQuant.
“It’s going to be an unstable couple of weeks,” added Mostafa Al-Mashita, vice president of trading for Global Digital Assets. “I wouldn’t be surprised to see another ‘black swan’ event in the next couple of months, even though bitcoin’s price action was surprisingly bullish considering the news,”
Volatility in bitcoin is good news for option buyers, and that market has 34,100 BTC in bets placed for expiration on October 30th.
The options market for the October expiry provides some probabilities for the future price of bitcoin, as traders see a 63% chance of bitcoin over $ 10,000, a 50% chance over $ 10,500, and a 36% chance of $ 11,000 for 1 BTC.
“It’s a tough market right now, up one minute and down the next,” said Rupert Douglas, head of institutional sales for crypto brokerage Koine. “I still think there are downside risks. Markets don’t like uncertainty and we certainly have it until early November. “
Stablecoin over $ 20 billion
Ether (ETH), the second largest cryptocurrency by market capitalization, fell on Friday trading around $ 344 and slipping 2% in 24 hours at 20:00 UTC (16:00 ET).
Read more: Ethereum 2.0 “Dress Rehearsal” gets a second hit with Zinken Testnet
The total market capitalization of stablecoins increased from $ 2.6 billion in early 2019 to $ 20 billion by the end of September. Tether (USDT), at $ 16 billion, is leading, with the US dollar currency (USDC) per second at $ 2.5 billion followed by TrueUSD (TUSD) with a market capitalization of $ 507 million.
A yield farmer who chooses to follow the devops199fan handle believes stablecoins play an important role as a growing market for stable assets strengthens the decentralized finance ecosystem, or DeFi. “The market cap of stablecoins is starting to go parabolic,” said devops199fan. “I think we’re just getting started. At DeFi in particular, we’ve only scratched the surface of what’s possible in terms of primitives and financial systems.”
Other markets
The digital assets on CoinDesk 20 are mostly on Red Friday. A winner at 8pm UTC (4pm ET):
Notable Losers at 20:00 UTC (16:00 ET):
Read more: The decentralized trading volume increased 103% in September
- Oil fell 4%. West Texas Intermediate Crude Oil Barrel Price: $ 36.97.
- Gold was flat, 0.14% in the red and at $ 1.902 at press time.
- US Treasury yields were mixed on Friday. Yields, which move in the opposite direction to the price, have risen the most over the 30 years, up to 1.479 and in green by 1.3%.
