Bitcoin is stuck around $ 10,000 with little price action while some Ether holders have withdrawn from the DeFi ecosystem.
- Bitcoin (BTC) traded around $ 10,014 at 20:00 UTC (16:00 ET). Down 1.1% compared to the previous 24 hours.
- Bitcoin 24 Hour Range: $ 9,920- $ 10,439
- BTC below its 10 and 50 day moving averages, a bearish sign for market technicians.
The poor action in the bitcoin market over the weekend was a welcome respite from the downtrend since early September, when prices hit $ 12,083 on spot exchanges like Coinbase.
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“The important thing is that we have kept the $ 10,000 threshold and I expect we will slowly rebuild from here,” said Chris Thomas, head of digital assets for Swissquote Bank.
Rupert Douglas, head of institutional sales for Koine crypto brokerage, is not ruling out a further decline. “Right now it is difficult to say how far BTC can retrace,” he told CoinDesk. “My concern is with stocks, where I believe technology is in a bubble not unlike 2000,” he added.
Equity markets are mixed on Tuesday, with some bullish numbers out of Asia, while European and US markets are down.
“I think we will soon see significantly lower stock prices, but will BTC be correlated since that was the last time the shares fell short in February and March? That’s the question, ”added Koine’s Douglas.
Over the past month, bitcoin has fallen more than 13% as equity indices, aided by the tech sector and various stimulus packages from governments, have held up better than the cryptocurrency bellwether.
In derivatives markets, open interest in bitcoin futures has fallen to its lowest level since the beginning of July, currently at around $ 3.7 billion.
“Bitcoin futures volumes have been lower in the past few days, partly due to the Labor Day weekend in the US, but we are also back more towards medium volume days after having some big days last week,” added Thomas of Swissquote. In fact, last Tuesday, the volume rose to $ 5.1 billion before declining.
Read more: Bitcoin’s August Rally Led to Record Crypto Derivatives Volumes: Report
While bitcoin has been relatively quiet over the long US weekend, decentralized finance, or DeFi, has once again stolen the cryptocurrency show surrounding the SushiSwap project, a drama Thomas hopes will fade quickly. “For me, it’s important that we stay put for a while and the DeFi space has a quiet couple of weeks with no more crazy non-certified projects causing problems,” added Thomas.
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The value of the DeFi falls
The second-largest cryptocurrency by market capitalization, ether (ETH), fell on Tuesday, trading around $ 336 and slipping 3.3% in 24 hours at 20:00 UTC (16:00 ET).
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For the first time in the DeFi Pulse data aggregator charts, the total value locked in DeFi has decreased. The blocked amount exceeded $ 9.5 billion on September 1, fell nearly $ 2 billion by September 5, and then recovered slightly.
“This is probably caused by the drop [the] ETH price, “said Jun Yi, a Singapore-based DeFi farmer.” ETH dropped about 30%. There is a cascade effect, “he added.
Aether holders in particular appear to have begun to retreat, with over 440,000 aether “unlocked” on September 4-5 after a slight recovery.
On the other hand, the number of bitcoins stuck in DeFi is still on the rise, surpassing the 80,000 BTC mark on Tuesday.
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Digital assets on CoinDesk 20 are mixed on Tuesday. Notable Winners at 8pm UTC (4pm ET):
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Notable Losers at 20:00 UTC (16:00 ET):
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- Oil is down 5.5%. West Texas Intermediate Crude Oil Barrel Price: $ 36.91.
- Gold was flat, 0.08% green and at $ 1,930 at press time.
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- US government bond yields all fell on Tuesday. Yields, which move in the opposite direction to the price, fell more in the decade, in the red by 5.2%.
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