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Bitcoin is making gains that have not been seen since early September; the amount of BTC locked in DeFi reaches six digits.
- Bitcoin (BTC) traded around $ 10,778 at 20:00 UTC (16:00 EDT). Gain of 0.70% in the previous 24 hours.
- Bitcoin 24 Hour Range: $ 10,252- $ 10,950
- BTC above its 10 and 50 day moving averages, a bullish sign for market technicians.
Bitcoin was able to hit $ 10,950 on spot exchanges like Coinbase Tuesday before losing some steam, settling at around $ 10,778 at press time.
Read more: Two have been accused of duplicating $ 5 million investors with bogus Bitcoin brokerage
“BTC is making a strong attempt to break out of the recent $ 10,100 to $ 10,500 range,” said David Lifchitz, chief investment officer of quantum firm ExoAlpha. “We are just above $ 10,600 and testing $ 10,600- $ 10,800 long enough would bring the next target to $ 11,000.”
Lifchitz cited factors other than mere price as reasons to be optimistic about the world’s oldest cryptocurrency. “From a fundamental point of view, the hashrate of bitcoin mining is reaching an all-time high,” added Lifchitz. In fact, the average daily hashrate on the Bitcoin network hit a record 151 million terahashs per second on Monday.
The increase in hashrate means that the next difficulty adjustment, scheduled for September 19, is likely to set a record level as well. “The difficulty is trying to adjust upwards at the end of this week to its all-time high,” added Lifchitz.
Read more: US bank regulators agree rules for Fintech, Crypto Licensing
Denis Vinokourov, head of research for Bequant brokerage, also sees other fundamental trends fueling bitcoin’s bull run. “Reports that MicroStrategy has completed yet another acquisition of 16,796 bitcoins at an aggregate purchase price of $ 175 million, along with a new wave of cash flowing into DeFi as indicated by the total locked-in value, are proving very supportive of the sentiment, “he said.
Read more: MicroStrategy buys an extra $ 175 million in Bitcoin, increasing BTC holdings to $ 425 million
Guy Hirsch, US chief executive for multi-asset brokerage eToro, noted that the amount of bitcoin inactive for at least three years is now above 31%, its highest point since late 2017.
Hirsch credits some of this bitcoin business coming from decentralized finance, or DeFi, which may require the movement of on-chain BTC. “We have seen more capital going into DeFi projects despite some of them having major problems, and even an increase in bitcoin locked on DeFi,” Hirsch told CoinDesk. “These developments suggest that there has been an increase in HODLing as people and institutions show a growing willingness to allocate crypto assets.”
Read more: Japanese crypto exchange accuses Binance of helping launder $ 9 million
100,000 BTC locked in DeFi
According to aggregator DeFi Pulse, the amount of bitcoin “blocked” or distributed in DeFi has crossed the 100,000 mark for the first time, currently at 101,719 BTC.
The total is bouncing towards $ 10 billion in total value, aided by bitcoin’s continuing upward trend in total locked-down value.
“The massive and rapid growth of lock-in cannot be denied. It’s kind of mind blowing, “said Henrik Kugelberg, a Sweden-based over-the-counter bitcoin trader. Kugelberg expects a lot more BTC on DeFi in the future.” While 100,000 BTC is a lot of money, in reality. is a small portion of the mined BTCs locked in DeFi I believe the doors have opened, but it’s still just a stream of bitcoin flowing.“
Read more: DeFi lender bZx claims $ 8 million stolen in Sunday’s attack
Other markets
The second largest cryptocurrency by market cap, ether (ETH), fell on Tuesday, trading around $ 365 and slipping 2.9% in 24 hours at 20:00 UTC (16:00 ET).
Read more: Galaxy Digital raises $ 1.2 million for the automated startup of Ethereum services
Digital assets on CoinDesk 20 are mostly in the red on Tuesday. Notable Winners at 8pm UTC (4pm ET):
Read more: SKALE completes $ 5 million token sale on ConsenSys anti-speculation platform
Notable Losers at 20:00 UTC (16:00 ET):
Read more: Filecoin: Understanding the complex cryptographic system intended to compete with AWS
Read more: New York Attorney General to Bitfinex and Tether: “The delays must end”
- Oil increased by 2.5%. West Texas Intermediate Crude Oil Barrel Price: $ 38.25.
- Gold was in the red by 0.21% and at $ 1,953 at press time.
Read more: Paxful, citing his “risk tolerance”, exits Venezuela’s P2P bitcoin market
- Yields on US government bonds rose on Tuesday. Yields, which move in the opposite direction to the price, rose the most on the 30-year bond, in the green by 1%.
Read more: Thailand’s central bank’s blockchain-enabled bond infrastructure passes the test
