Market

Market Wrap: Bitcoin Slips to $11.2K; Uniswap Flows Dominate Ether

Published

3 Monaten ago

Oktober 14, 2020

Bitcoin is trending downward while ether transaction activity is showing Uniswap’s influence on the market.

Bitcoin (BTC) trading around $11,359 as of 20:00 UTC (4 p.m. ET). Slipping 0.38% over the previous 24 hours.
Bitcoin’s 24-hour range: $11,286-$11,555
BTC below its 10-day and 50-day moving averages, a bearish signal for market technicians.

Bitcoin trading on Bitstamp since Oct. 12.

Source: TradingView

Bitcoin’s price dipped Wednesday after a move up to as high as $11,555 on spot exchanges like Bitstamp lost momentum. The world’s largest cryptocurrency by market capitalization then slipped to as low as $11,286 and is at $11,359 as of press time.

Read More: Bitcoin Steady Above $11,400 as Hashrate Reaches New High

On Aug. 18, bitcoin traded at its 2020 high (so far) of $12,475 on spot exchanges such as Bitstamp. Many investors were hoping bitcoin’s uptrend since Oct. 8 would break above that level.

However, the market has predictably pulled back, at least according to David Lifchitz, chief investment officer of quant trading firm ExoAlpha.

“The road to over $12,000 is not a straight line,” said Lifchitz. “$11,500 was a first target reached, but also the first major roadblock with a heavy congestion zone ahead, between $11,500 and $12,000, the range in which bitcoin has been trading for the full month of August.”

btcsinceaugstamp — Spot bitcoin trading on Bitstamp since August.

“A small pullback after is normal and healthy in order to reload before the next reach toward $12,000,” Lifchitz added.

Investors expect more volume in the market might help push prices higher. Yet, spot volumes have decreased since late July and into August, when USD/BTC trading activity sometimes could reach as high as $1 billion on a single day.

threemonthvolume — Bitcoin volumes on major venues the past month.

“Crypto exchange and derivative exchange platforms have seen a month-over-month decline of over 30% from numbers seen as recently as June,” said Zachary Friedman, chief operating officer for trading firm Global Digital Assets. “Generally speaking, the industry is still at a place where retail traders dictate most of the volume. These traders have been seen opting more for a longer term HODL strategy, which has caused a lull.”

Read More: Fidelity Report Says Bitcoin’s Market Cap is ‘Drop in the Bucket’ of Potential

One metric to keep an eye on is implied volatility, which has been trending lower. “Implied volatility is the expected volatility of bitcoin going forward, which tends to give some insight on how much bitcoin could swing, up or down,” noted ExoAlpha’s Lifchitz.

btcatmvolthreemos — Bitcoin options one-month implied volatility the past six months.

This means traders have more certainty of price direction – at least for the time being. “Today, bitcoin options one-month implied volatility is around 50%, which is in line with a historically quiet market, meaning that there is, as of now, no drastically bullish or bearish sentiment out there regarding expected bitcoin short-term moves,” said Lifchitz.

Uniswap dominates the ether market

Ether (ETH), the second-largest cryptocurrency by market capitalization, was down Wednesday trading around $375 and slipping 0.68% in 24 hours as of 20:00 UTC (4:00 p.m. ET).

Read More: Ethereum’s Vitalik Buterin Calls on Power Users to Move to Layer 2 Scaling

The decentralized exchange, or DEX, Uniswap is dominating the ether market when looking at asset flows. Over the past month, over 4.2 million ether changed hands via Uniswap, tops for the network for one entity, according to data aggregator Flipside Crypto.

etherflows — Ether active supply changing hands the past month.

This activity is a display of the influence Uniswap has on the market. However, Brian Mosoff, chief executive of investment firm Ether Capital, isn’t too concerned about the DEX having so much influence on ether’s market.

“Uniswap is completely transparent when it comes to trading volumes and metrics,” Mosoff said. “Compare this to alternatives in the cryptocurrency space in centralized exchanges – you need to trust the output of a volume feed that can be controlled by a single person.”

Other markets

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

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

Read More: In Effort to Differentiate, Litecoin Makes a Move to Privacy

Oil was up 2%. Price per barrel of West Texas Intermediate crude: $41.
Gold was in the green 0.46% and at $1,900 as of press time.

U.S. Treasury bond yields all fell Wednesday. Yields, which move in the opposite direction as price, were down most on the two-year, dipping to 0.139 and in the red 4%.

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

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Related Topics:112K Bitcoin Dominate Ether Flows Market Slips Uniswap Wrap

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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.

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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.

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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.

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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.

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

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