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Bitcoin is in bearish territory for the third consecutive day, and investors are still looking to DeFi for gains during the dump.
- Bitcoin (BTC) traded around $ 10,606 at 20:00 UTC (16:00 ET). Slipping by 0.90% compared to the previous 24 hours.
- Bitcoin 24 Hour Range: $ 9,894- $ 10,081
- BTC below its 10 and 50 day moving averages, a bearish sign for market technicians.
Bitcoin’s price dropped below $ 10,000 on Friday, slipping as low as $ 9,894 on spot exchanges like Coinbase.
“That’s not the best aspect for BTC from a momentum and positive volume standpoint, to be honest,” said Constantine Kogan, partner of BitBull Capital crypto fund.
Read more: V-shaped recovery from Bitcoin’s biggest drop since March is unlikely
David Lifchitz, chief investment officer for cryptocurrency firm ExoAlpha, says traders are taking profit after bitcoin failed to break above $ 12,100. It may seem like a long time ago, but on Tuesday alone the price jumped to $ 12,058.
“It appears that some bitcoin holders have decided that this latest failed breakout was one too many,” he told CoinDesk. “A full move could potentially drive the price back towards $ 9,500.
Lifchitz added that some other fundamental factors that could influence the bitcoin bearish run.
“We observed that the market began to fade as South Korea’s largest exchange, Bithumb, was raided by the police,” he noted.
Read more: Police reportedly raided the Bithumb headquarters
“It could also be the miners who decide to monetize their rewards,” Lifchitz added. In fact, bitcoin holders, which may include larger holders such as miners, are pushing more inflows into exchanges to their highest levels since late July.
“In my opinion, this is a classic case of a market that was too tense, which had advanced too much and too fast, and therefore was in dire need of consolidation,” said Jean-Marc Bonnefous, managing partner of multi-asset manager Tellurian Capital. . “Crypto is giving in to other traditional risk assets,” he added.
The stock indices were on Red Friday:
Alessandro Andreotti, an over-the-counter cryptocurrency trader based in Italy, is optimistic despite the cryptocurrency market environment. “Bitcoin has been extremely oversold. It actually reminds me of the March accident, “he said.” But honestly, I think he can bounce back after this drop. “
Read more: Defect of Wasabi wallet patches that may have hindered Bitcoin privacy
More cryptocurrencies locked in DeFi
Ether (ETH), the second largest cryptocurrency by market cap, fell on Friday, trading around $ 392 and slipping 2.5% in 24 hours at 20:00 UTC (16:00 ET).
Read more: Binance observes Uniswap lunch with the launch of the centralized “swap” platform
Returns in DeFi could become important for cryptocurrency traders if the market continues to show bearish signals: Ether stuck in DeFi has risen, from 5 million to 6.9 million in the last week, a 35% increase.
Investors also continue to lock in bitcoin in decentralized finance. There are now over 74,000 BTC in use on Ethereum as those who block bitcoins get a yield or profit in the DeFi ecosystem. Over the past week, the amount of bitcoin in DeFi has increased by 33%.
“An incredible amount of BTC is stuck in DeFi, earning ‘dividends’ for hodlers simply by owning the asset,” noted Henrik Kugelberg, a Swedish over-the-counter cryptocurrency trader.
Read more: Tether, Bitfinex File Motion to file the lawsuit for market manipulation
Other markets
The digital assets on CoinDesk 20 are almost all on Red Friday. Notable Winners at 8pm UTC (4pm ET):
- them (EOS) + 4.5%
- neo (NEO) + 0.22%
Read more: Stack Foundation to spend the “majority” of STX Token Fortune on the ecosystem
Notable Losers at 20:00 UTC (16:00 ET):
Read more: BitMEX lists futures for new crypto coins for the first time in over 2 years
- Oil is down 4.2%. West Texas Intermediate Crude Oil Barrel Price: $ 39.50.
- Gold is trailing at 0.25% and at $ 1,935 at press time.
Read more: Craig Wright Trial Over a Fortune in Bitcoin moved to 2021
- Yields on US Treasuries rose on Friday. Yields, which move in the opposite direction to the price, increased the most over the decade, in the green by 11.2%.
Read more: BitClub promoter pleads guilty to role in $ 722 million fraudulent mining scheme
