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Spot volumes and futures open interest pushed bitcoin price higher on Tuesday, beating ether’s performance so far this month.
- Bitcoin (BTC) traded around $ 17,688 at 21:00 UTC (16:00 ET). 5.3% gain compared to the previous 24 hours.
- Bitcoin 24 Hour Range: $ 16,560- $ 17,862
- BTC above its 10 and 50 day moving averages, a bullish sign for market technicians.
Bitcoin’s bull mode continued on Tuesday after opening the week hitting unseen highs since early 2018. The world’s oldest cryptocurrency traded as high as $ 17,862 at press time, according to data from CoinDesk 20.
Read more: Bitcoin slices $ 17,000 as market capitalization approaches an all-time high
The last time bitcoin was at this level was on December 19, 2017, a volatile day that saw the price for 1 BTC hover between $ 16,862 and $ 18,984.
Promising news Monday of a second possible coronavirus vaccine lifted most markets and bitcoin simply continued its run with very positive trading fundamentals, noted Jason Lau, chief operating officer for the San Francisco exchange. OKCoin. “Bitcoin had already gained Monday before the news of the vaccine, reflecting its recent strength,” Lau said. “This rally is different from 2017 because it is more institution-driven.”
According to data aggregator Skew, the open interest rate on Bitcoin futures on the headquarters of institutional investors CME is at an all-time high on Tuesday, reaching $ 976 million.
“Bitcoin has continued to ignite, but behind the raging bull is an increasing level of refinement and capital allocation techniques,” said Denis Vinokourov, head of research for crypto brokerage Bequant.
Read more: Traders brace for increased volatility as bitcoin price approaches record highs
“Bitcoin has gone parabolic, with traders piling up from all sides: retail, institutional, Main Street, and Wall Street,” said Guy Hirsch, US chief executive for multi-asset brokerage eToro. “FOMO is back and it looks like 2017 again, only this time the market is supported by real fundamentals rather than by [initial coin offering] mania three years ago. ”
Spot volumes on major USD / BTC exchanges surged Tuesday, with daily volume of more than $ 1.1 billion at press time and well above last month’s daily average of $ 413 million.
In addition to major trading platforms that trade dollars for bitcoin, Hirsch also noted that many retail investors now have another location in the form of PayPal (PYPL), which has opened up to $ 20,000 cryptocurrency purchases for all residents. in the US last week and could increase the potential for the price to hit new records.
“Given the increased exposure to moms and pop investors through platforms like PayPal, we could be on a crescendo, with bitcoin surging into entirely new territory while potentially pushing past an all-time high,” Hirsch said.
Another factor to consider: the decline in the value of the US dollar. The US dollar index was down 0.25% on Tuesday and continues to lull against a basket of other fiat currencies.
“Another big variable is the devaluation of the US dollar,” noted Ilia Maksimenka, CEO of decentralized finance startup PlasmaPay. “This makes people have less faith in the dollar, so people rely on other investment vehicles.”
Ether lags Bitcoin in November
Ether (ETH), the second largest cryptocurrency by market cap, rose on Tuesday trading around $ 482 and climbing 4.5% in 24 hours at 21:00 UTC (16:00 ET).
Read more: As DeFi grows, investors look to Polkadot as the next Ethereum
Bitcoin’s price trend is actually beating the ether in November at press time, up 28% versus 24%.
However, ether is still killing it in 2020, up 270% from bitcoin’s 146% gain from the start of the year.
Brian Mosoff, chief executive of the investment firm Ether Capital, said that in this bull run bitcoin has a name recognition that Ether does not have, at least not yet. “It’s easy to see why bitcoin is leading the month in the digital assets space. For traditional investors it has by far the largest brand, “Mosoff told CoinDesk.” That said, I believe both bitcoin and ether will perform well in the coming months and years. Ethereum’s programmable flexibility is technically an order of magnitude improvement over [the Bitcoin blockchain] and has by far the largest and most diverse group of developers. “
Other markets
Digital assets on CoinDesk 20 are mostly green on Tuesday. Notable Winners at 9pm UTC (4pm ET):
- Oil fell 0.13%. West Texas Intermediate Crude Oil Barrel Price: $ 41.39.
- Gold was 0.35% in the red and at $ 1.881 at press time.
- The 10-year US Treasury yield fell on Tuesday, dropping to 0.872 and 4% in the red.
