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Market Wrap: Bitcoin Hits $18.8K as Total Crypto Locked in DeFi Passes $14B

Published

1 Monat ago

November 20, 2020

The price of bitcoin hit new 2020 highs as the “alternative to gold” narrative increases. Meanwhile, smaller crypto tokens might be helping push DeFi to new heights.

Bitcoin (BTC) trading around $18,638 as of 21:00 UTC (4 p.m. ET). Gaining 3.5% over the previous 24 hours.
Bitcoin’s 24-hour range: $17,723-$18,813 (CoinDesk 20)
BTC above its 10-day and 50-day moving averages, a bullish signal for market technicians.

Bitcoin trading on Coinbase since Nov. 18.

Source: TradingView

Bitcoin’s price made gains Friday, going as high as $18,813, according to CoinDesk 20 data. The world’s oldest cryptocurrency then dropped a bit, to $18,638 as of press time. The last time bitcoin traded at the $18,800 level was back on Dec. 19, 2017, when the price went as high as $18,984.

btcdailynov20 — Daily spot trading on Coinbase since 2017.

Some analysts see $19,000 as certainly within reach, but bitcoin won’t shoot straight up getting there, noted John Kramer, a trader at crypto firm GSR. “It feels more and more like we’re hitting a bitcoin tipping point,” Kramer told CoinDesk. “That’s not to say that the price will rocket past $19,000; in fact, a cooldown is to be expected.”

Read More: BlackRock’s Chief Investment Officer Says Bitcoin Could Replace Gold

Despite any cooldown that may occur, bitcoin is certainly hotter than gold so far in 2020, with bitcoin up 147% year to date versus the yellow metal’s 22% performance.

btcvsgold2020-2 — Bitcoin’s performance versus gold in 2020.

“I expect a lot more media coverage and reinforcement of the narrative around bitcoin being a better alternative to gold in the near future as more and more prominent Wall Street investors like BlackRock are openly sharing their positive views,” said Jason Lau, chief operating officer for San Francisco-based cryptocurrency exchange OKCoin.

Read More: Y Combinator, Pantera Backs $3M in New Crypto Derivatives Exchange

Lau was referring to an appearance on CNBC’s “Squawk Box” by Rick Rieder, fixed income CIO at BlackRock, the $7 trillion assert manager. “Do I think it’s a durable mechanism that … could take the place of gold to a large extent? Yeah, I do, because it’s so much more functional than passing a bar of gold around,” Rieder said of bitcoin during the program.

In the derivatives market, options traders are betting on some bitcoin uncertainty for December expiration. Traders expect a 54% chance of bitcoin staying over $18,000, a 44% chance of $19,000 per 1 BTC and a 35% chance of $20,000.

skew_probability_of_btc_being_above_x_per_maturity-10 — Bitcoin price probabilities based on December expiration.

Denis Vinokourov, head of research at digital asset prime broker Bequant, said many are dismissing the impact ether could have on the derivatives market heading into 2021.

“If one goes by the notion that bitcoin will become a more commonly held asset in traditional space, then there is little that would prevent [ether] in following suit,” Vinokourov told CoinDesk. “Expect the CME to launch ether futures and options in due course, as the current market positioning and flow clearly show growing demand.”

TVL in DeFi going up, but not from BTC, ETH

Ether (ETH), the second-largest cryptocurrency by market capitalization, was up Friday, trading around $510 and climbing 7.5% in 24 hours as of 21:00 UTC (4:00 p.m. ET).

The total amount of cryptocurrency “locked” (TVL) in decentralized finance, or DeFi, has passed $14 billion for the first time, at $14.1 billion as of press time.

tvldefinov20 — Total value locked in dollar terms in DeFi the past three months.

However, the amount of ETH locked has been declining, perhaps because some stakers are moving the asset over to Ethereum 2.0 contract.

ethdefinov20 — Ether locked in DeFi the past three months.

In addition, the amount of bitcoin locked is also dipping in DeFi.

btcdefinov20 — Bitcoin locked in DeFi the past three months.

It seems that smaller tokens are seeing major gains along with BTC and ETH, likely contributing to TVL gains, although as of press time DeFi Pulse did not respond to a request for comment on how it accounts for those tokens in its metrics.

“The substantial recent price run-up in ETH and BTC have caused in nominal dollar terms the TVL to balloon as the smaller absolute number of tokens of each is still representing a much larger dollar amount,” noted John Willock, chief executive officer of crypto custody provider Tritium.

Other markets

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

Read More: US Firm Launches Company-Sponsored Bitcoin Retirement Plans

Oil was up 1.6%. Price per barrel of West Texas Intermediate crude: $42.40.
Gold was in the green 0.43% and at $1,873 as of press time.

The 10-year U.S. Treasury bond yield fell Friday dipping to 0.826 and in the red 0.19%.

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Related Topics:14B 188K Bitcoin Crypto DeFi hits locked Market Passes total Wrap

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Market

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

Published

3 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

48 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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