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Market Wrap: Bitcoin Surpasses $15.3K; Ether Up 210% in 2020

Published

2 Monaten ago

November 6, 2020

Bitcoin is hitting fresh highs during a surge past $15,000 while investors may be overlooking the upside of ether in 2020.

Bitcoin (BTC) trading around $15,087 as of 21:00 UTC (4 p.m. ET). Gaining 7.7% over the previous 24 hours.
Bitcoin’s 24-hour range: $14,005-$15,306
BTC above its 10-day and 50-day moving averages, a bullish signal for market technicians.

Bitcoin trading on Bitstamp since Nov. 2.

Source: TradingView

The price of bitcoin jumped Thursday, going up to $15,306 around 15:50 UTC (10:50 a.m. ET), according to CoinDesk 20 data, taking it to its highest price point since Jan. 8, 2018, when bitcoin’s high was $15,360. It has dipped since, settling at $15,087 as of press time.

Read More: Bitcoin Breaks $15K as Investor Numbers Peak

“Bitcoin is above the psychological threshold of $15,000 today on strongly positive momentum, having cleared resistance from 2019,” said Katie Stockton, a technical analyst for Fairlead Strategies.

Momentum, in the form of volume, was strong Thursday on leading USD/BTC spot exchanges. It was $1,233,248,261 as of press time, the highest since Oct. 21 when volume hit $1,273,812,127.

volumenov5 — Spot BTC/USD volumes on major exchanges the past month.

Stockton suspects momentum may subside, which may cause a price pullback. “There are some signs of short-term upside exhaustion from an overbought/oversold perspective supporting a few weeks of consolidation, but we would see this as healthy from a technical perspective.”

Analysts still see bitcoin as an asset to bet on in uncertain times over the long term.

“The U.S. is going to push the spending button again no matter who wins the White House,” noted Henrik Kugelberg. Next year “will probably see more individual support payments all over the world, and some of that money is inevitably gonna be placed in bitcoin.”

“The macroeconomic situation in the U.S. and elsewhere is far more uncertain, and concerns about COVID-19’s resurgence sending the economy back into a tailspin are not entirely unfounded,” noted Guy Hirsch, U.S. managing director at multi-asset brokerage eToro. “All in all, it feels like a perfect storm for retail [bitcoin] adoption that’s coming right at the beginning of an expected wave of institutional capital,” he added. While most markets are up Thursday along with crypto, the U.S. Dollar Index, a measure of the greenback versus a basket of other fiat currencies, is in the red 0.88% Thursday as of press time, down 1.6% since the start of November.

dxynov5 — The U.S. Dollar Index (DXY) since Nov. 1.

In the futures market, open interest for bitcoin contracts was back at $5.4 billion, with CME’s $804 million taking third place of all venues as institutional investors poured money in. The CME is a U.S.-regulated exchange for larger investors and brokerages, therefore its open interest growth is a signal large players are placing hedges and directional positions as part of some sort of bitcoin strategy.

skew_btc_futures__aggregated_open_interest-25 — Bitcoin futures open interest the past year.

“Interestingly, while aggregate futures open interest (OI) has risen back to $5.4 billion (late October highs), the increments were very steady and managed,” noted Denis Vinokourov, head of research at digital asset prime broker Bequant. “This suggests that the more regulated entities that operate in the current ecosystem are taking a more pragmatic approach to the current FOMO.“

Ether outperforming bitcoin

The second-largest cryptocurrency by market capitalization, ether (ETH), was up Thursday, trading around $414 and climbing 3.4% in 24 hours as of 21:00 UTC (4:00 p.m. ET).

Read More: Someone Just Paid a $9,000 Fee for a $120 DeFi Transaction

Bitcoin boosters like to talk about its 2020 price gains as a hedge against an uncertain global economy. However, ether has done even better than bitcoin so far this year, up 210% versus bitcoin’s 95% gains.

btcvsethnov5 — Bitcoin’s performance versus ether in 2020.

John Willock, chief executive officer of crypto liquidity provider Tritum, said investors like ether’s potential as both a hedge and a bet on the possible future of finance.

“Ether holds similar qualities to bitcoin as a general economic uncertainty hedge but also has the added value of utility with the network it powers,” Willock said. “With the long-anticipated forthcoming ETH 2.0 proof-of-stake upgrade, it will, from an investment perspective, become a yield-bearing instrument which has much broader appeal.”

Other markets

Digital assets on the CoinDesk 20 are all green Thursday. Notable winners as of 21:00 UTC (4:00 p.m. ET):

Read More: US Seized More Than $1B in Silk Road-Linked Bitcoins, Seeks Forfeiture

Oil was down 1.5%. Price per barrel of West Texas Intermediate crude: $38.52.
Gold was in the green 2.5% and at $1,950 as of press time.

U.S. Treasury bond yields were mixed Thursday. Yields, which move in the opposite direction as price, were up most on the two-year bond, climbing to 0.149 and in the green 1.3%.

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

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Related Topics:153K Bitcoin Ether Market Surpasses Wrap

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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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