Market

Market Wrap: Bitcoin Hits $10.9K; Total BTC Locked in DeFi Passes 100K

Published

3 Monaten ago

September 15, 2020

Bitcoin is making gains not seen since early September; the amount of BTC locked in DeFi hits six figures.

Bitcoin (BTC) trading around $10,778 as of 20:00 UTC (4 p.m. EDT). Gaining 0.70% over the previous 24 hours.
Bitcoin’s 24-hour range: $10,252-$10,950
BTC above its 10-day and 50-day moving averages, a bullish signal for market technicians.

Bitcoin trading on Coinbase since September 13.

Source: TradingView

Bitcoin was able to reach as high as $10,950 on spot exchanges such as Coinbase Tuesday before losing some steam, settling around $10,778 as of press time.

Read More: Two Charged With Duping Investors of $5M 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 quant firm ExoAlpha. “We’re just above $10,600 and testing $10,600-$10,800 long enough would position the next target to $11,000.”

btcinsep — Bitcoin trading since the start of September.

Lifchitz cited factors other than just price as reasons to be optimistic about the world’s oldest cryptocurrency. “From a fundamental point of view, bitcoin mining hashrate is hitting all-time highs,” Lifchitz added. Indeed, the daily average hashrate on the Bitcoin network reached a records 151 million terahashes per second on Monday.

btchashrate-2 — Mean hash rate for the bitcoin network the past three years.

The rise in hashrate means the next difficulty adjustment, scheduled for Sept. 19, will also likely set a record high. “Difficulty is looking to adjust upwards later this week to its highest ever,” added Lifchitz.

Read More: US State Bank Regulators Agree to Rules for Fintech, Crypto Licensing

Denis Vinokourov, head of research for brokerage Bequant, also sees other fundamental trends fueling bitcoin’s bullish run. “The reports that MicroStrategy has completed yet another acquisition of 16,796 bitcoins at an aggregate purchase price of $175 million, together with a new wave of money flowing into DeFi as indicated by the total value locked, are all proving to be very supportive for the sentiment,” he said.

Read More: MicroStrategy Buys $175M More in Bitcoin, Upping BTC Holdings to $425M

Guy Hirsch, U.S. managing director for multi-asset brokerage eToro, noted the amount of bitcoin inactive for at least three years is now over 31%, its highest point since late 2017.

btcsupplyactive — Percentage of bitcoin supply active past three years since September 2017.

Hirsch attributes some of this bitcoin activity coming from decentralized finance, or DeFi, which can require movement of BTC on-chain. ”We have witnessed more capital going into DeFi projects despite some of them experiencing major issues, and also 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 an increasing willingness to allocate to crypto assets.”

Read More: Japanese Crypto Exchange Accuses Binance of Helping Launder $9M

100K BTC locked in DeFi

The amount of bitcoin “locked,” or deployed, in DeFi has crossed the 100,000 mark for the first time, currently at 101,719 BTC, according to aggregator DeFi Pulse.

tvlbtcsep15 — Total bitcoin locked in DeFi the past three months.

The total is rebounding towards $10 billion in total value, helped by bitcoin’s continued upward trend in total value locked.

tvlusdsep15 — Total locked in DeFi in USD terms the past three months.

“The massive and quick growth of the lock-in cannot be denied. It’s kind of mind-blowing,” said Henrik Kugelberg, a Sweden-based bitcoin over-the-counter trader. Kugelberg expects a lot more BTC on DeFi in the future. “While 100,000 BTC is a lot of money it is actually a small part of mined BTC locked in DeFi. I believe the floodgates have opened but it’s still just a stream of bitcoin flowing in.”

Read More: DeFi Lender bZx Reclaims $8M Stolen in Sunday’s Attack

Other markets

The second-largest cryptocurrency by market capitalization, ether (ETH), was down Tuesday, trading around $365 and slipping 2.9% in 24 hours as of 20:00 UTC (4:00 p.m. ET).

Read More: Galaxy Digital Leads $1.2M Raise for Automated Ethereum Services Startup

Digital assets on the CoinDesk 20 are mostly in the red Tuesday. Notable winners as of 20:00 UTC (4:00 p.m. ET):

Read More: SKALE Completes $5M Token Sale on ConsenSys’ Anti-Speculation Platform

Notable losers as of 20:00 UTC (4:00 p.m. ET):

Read More: Filecoin: Understanding the Complex Crypto System Meant to Rival AWS

Read More: New York Attorney General to Bitfinex and Tether: ‘Delays Must Stop’

Oil is up 2.5%. Price per barrel of West Texas Intermediate crude: $38.25.
Gold was in the red 0.21% and at $1,953 as of press time.

Read More: Paxful, Citing Its Own ‘Risk Tolerance,’ Exits Venezuela’s P2P Bitcoin Market

U.S. Treasury bond yields climbed Tuesday. Yields, which move in the opposite direction as price, were up most on the 30-year bond, in the green 1%.

Read More: Thai Central Bank’s Blockchain-Enabled Bond Infrastructure Passes Test

https://www.coindesk.com/coindesk20 — The CoinDesk 20: The Assets That Matter Most to the Market

Source link

Related Topics:100K 109K Bitcoin BTC DeFi hits locked Market Passes total Wrap

Up Next

Nasdaq Launches Anti-Money Laundering AI Technology

Don't Miss

SNE Stock Down 1.5% as Sony Cuts PS5 Production Budget

Click to comment

Market

Grayscale’s AUM Hits $19B, Up from $16.4B Announced Week Ago

Published

12 Minuten ago

Dezember 29, 2020

While it may be too early to project the possible performance of Grayscale in 2021, the spate of patronage the company recorded in the last two quarters of 2020 looks quite inspiring.

In what confirms the continued embrace of Bitcoin (BTC) and altcoins by institutional investors and the big-money clients, Grayscale’s total Assets Under Management (AUM) has been reported to top $19 billion, a significant uplift from the $16.4 billion reported a week ago. According to a report by CoinDesk, Grayscale hit this AUM milestone on December 28, and Grayscale’s Bitcoin Trust holds by far the largest chunk of the total assets at $16.3 billion.

The recent rally of Bitcoin to new highs as recorded in the past days started as a chain reaction that took its precedent months ago when Wall Street firms and institutional investors began betting big on Bitcoin. The investment made by the likes of MicroStrategy Incorporated (NASDAQ: MSTR), Square Inc (NYSE: SQ), and PayPal Holdings Inc (NASDAQ: PYPL) did not just help put Bitcoin in the limelight through mainstream media, it also prompted the embrace of the digital assets by other firms.

With this chain reaction, the price of Bitcoin continued to soar in response to boosted demand for the coin, and institutions like Grayscale that serves institutional investors benefited from this new demand, and hence, the continued increase in the firm’s AUM. Besides BTC, Grayscale’s Ethereum (ETH) AUM is now worth $2.1 billion, while the bulk of smaller holdings in Litecoin (LTC), XRP, and ZCash amongst others helped Grayscale’s total AUM to reach the new milestone.

Grayscale’s AUM May See More Boost in 2021

While it may be too early to project the possible performance of Grayscale in the coming year 2021, the spate of patronage the company recorded in the last two quarters of 2020 makes the case for improved performance provided the tempo is sustained.

Just as has been noted earlier, the continued embrace of cryptocurrency assets by highly liquid companies will continue to have a positive reaction on the price of Bitcoin, and by extension, this will even make more people pick interest in BTC. As a relatively young asset class, Bitcoin and altcoins have tremendous room to grow as the adoption rate is still not optimized owing to certain regulatory provisions in most countries, Grayscale and other hedge funds have enough room to compete for new clients entering the space.

With Grayscale been among the institutions at the forefront of helping to drive the acceptance of BTC, ETH, and other digital currencies, enjoying the dividends of its works through impressed AUM figures does not come as much of a surprise.

next Altcoin News, Bitcoin News, Cryptocurrency news, News

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

Source link

Market

eToro Said to Be in Talks With Goldman About Possible $5B IPO: Report

Published

57 Minuten ago

Dezember 29, 2020

The crypto trading/investment management platform is also considering the possibility of a merger with a special purpose acquisition company.

Source link

Market

Altcoin Rally Dimming Bitcoin’s Shine, Polkadot Gains 34% in One Week

Published

2 Stunden ago

Dezember 29, 2020

Polkadot (DOT) saw daily gains of 22.5% wrapping up an impressive week with an almost 34% rise in its value.

Bitcoin bullish run looks to have come to a halt amidst an altcoin rally which has seen relatively lower coins put up impressive performances in the past few weeks. Bitcoin dominance is gradually fading as many experts believe the biggest digital coin is backing down as some top altcoin are showing strong “moves” or signals.

Bitcoin hit an all-time high over the weekend, the third time its price has done so in just over 2 months. The price of the biggest digital coin touched $28,400 on December 27, before a lightning drop took it to $27,000 just hours of that incredible feat.

Bitcoin failed to hold onto the $27,000 mark as its price further dropped to $26,000 a day after and is now testing lower levels centered on $26,000 as immediate support. Reports from crypto exchanges revealed BTC/USD trading at lows of $25,830 during the early hours of December 29.

While Bitcoin has seen red over a couple of days, some altcoins are putting up impressive numbers, giving off signals of a strong altcoin rally. Despite XRP’s current issues, the altcoin market is showing glimpses of its glory days as some digital coins are poised to see major gains over the next couple of weeks. Ethereum (ETH) is at the forefront of the rally, with its price climbing above $700 for the first time since May 2018.

Polkadot (DOT) also saw daily gains of 22.5% wrapping up an impressive week with an almost 34% rise in its value. The coin is now the seventh-largest token by market cap. Kusama (KSM), a cousin of Polkadot, also saw its price gain 46% last week, pushing its price from $43.1 to $63. The digital token is currently trading at $56 but experts are adamant a breakout above $65 is possible as the token has rebounded off the 20-day exponential moving average ($50.90)

Speaking on the possibility of a long term altcoin rally, analyst Van de Poppe stated that altcoins are next in line to see greens. He added that the next “impulse wave” on Bitcoin next year should be able to take the market to $40,000 or $50,000, but until then, the possibility of a continuance altcoin rally is very much likely.

Although many factors could be in play with regards to the latest Bitcoin price dip, it’s recent fallout with Ripple’s XRP leads the way. Ripple was hit with a lawsuit from the United States Security and Exchange Commission (SEC) and subsequently suffered drops that left its price in a pit. XRP, the fourth-largest cryptocurrency by market cap, is now trading at $0.20 as news broke that Coinbase, a major US cryptocurrency exchange has decided to suspend its trading from next month.

next Altcoin News, Bitcoin News, Cryptocurrency news, News

Crypto fanatic, writer and researcher. Thinks that Blockchain is second to a digital camera on the list of greatest inventions.

Source link