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Bitcoin’s price fell on Monday due to greater macroeconomic concerns, while Ethereum’s lower fees benefit hardcore DeFi users.
- Bitcoin (BTC) traded around $ 13,011 at 20:00 UTC (16:00 ET). Down by 0.33% compared to the previous 24 hours.
- Bitcoin 24 Hour Range: $ 12,773- $ 13,250
- BTC below its 10 and 50 day moving averages, a bearish sign for market technicians.
Bitcoin’s price rallied higher on Monday, climbing to $ 13,250 on spot exchanges like Bitstamp before dropping to $ 12,773 around 5pm UTC (1pm ET).
John Willock, CEO of cryptocurrency provider Tritum, said the bitcoin market may remain close to its current price, although some traders participated in profit-taking on Monday.
“I think it’s possible to keep around $ 13,000 for the short term,” Willock said. “There are likely to be some traders looking to close the longs from the recent uptrend which could cause a slight downsizing,” he added.
However, Consantin Kogan, partner of the crypto fund BitBull Capital, said bitcoin had positive momentum before its sharp price drop, and that much more is to come. “We have to take into account that a correction is already in turmoil,” he said. “I think it will happen this week.”
Major global equity indices also fell on Monday due to COVID-19 uncertainty.
“When macro problems occur, they affect the entire market and not just an asset class,” said Andrew Tu, an executive at quantum trading firm Efficient Frontier. Hopes for stimulus are fading as coronavirus cases rise in America and around the world. This is causing countries to shut things down again, which will cause the economy to contract further. ”
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While bitcoin has fallen as stocks plummet in recent times, the cryptocurrency benchmark has performed much, much better than stocks in the 2020 balance sheet.
Despite Monday’s drop in prices, the bitcoin derivatives market is still signaling an uptrend, according to Cindy Leow, partner of multi-strategy cryptocurrency firm 256 Capital. “Market sentiment is starting to get more exuberant with call options with a strike of $ 50,000 by the end of the year listed on Deribit, and futures are starting to heat up,” Leow said.
In fact, funding rates on futures are still mostly positive on futures exchanges, meaning long-term traders continue to leverage liquidity to make bullish bets.
Ether tariffs continue to decline
Ether (ETH), the second largest cryptocurrency by market capitalization, fell Monday trading around $ 391 and slipping 4% in 24 hours at 20:00 UTC (16:00 ET).
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On Saturday, October 24, the average daily network rates on Ethereum reached 0.00223399 ETH, a low not seen since July 12 and beating the previous low of October 17. Ethereum’s network fees only reached a 2020 high in September, and a record $ 166 million was paid to miners during that month.
Farmer “devops199fan,” a longtime active participant who finds profit opportunities in decentralized finance, or DeFi, said he expects more positive expected volume, or EV, with lower fees. “I actually think this is good for yield farming,” he told CoinDesk, “because it means more opportunities are positive EVs as the fees are lower.”
Other markets
Digital assets on CoinDesk 20 are mostly red on Monday. Notable Winners at 8pm UTC (4pm ET):
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- Oil fell 3%. West Texas Intermediate Crude Oil Barrel Price: $ 38.51.
- Gold was flat, 0.05% green and at $ 1,901 at press time.
- Yields on US Treasuries fell on Monday. Yields, which move in the opposite direction to the price, fell more on the two-year bond, falling to 0.147 and in the red to 8.9%.
