Market Wrap: Bitcoin Fails to Break $15.9K; Over 50K ETH Staked on Eth 2.0 Contract – BTC Ethereum Crypto Currency Blog

CoinDesk 20 Bitcoin Price Index

Market Wrap: Bitcoin Fails to Break $15.9K; Over 50K ETH Staked on Eth 2.0 Contract

Bitcoin gained Wednesday while Ethereum 2.0 staking has been ramping up.

  • Bitcoin (BTC) trading around $15,694 as of 21:00 UTC (4 p.m. ET). Gaining 2.6% over the previous 24 hours.
  • Bitcoin’s 24-hour range: $15,293-$15,973
  • BTC above its 10-day and 50-day moving averages, a bullish signal for market technicians.
btcnov11
Bitcoin trading on Bitstamp since Nov. 9.
Source: TradingView

Bitcoin’s price was back on a bullish run Wednesday, heading as high as $15,973 around 18:00 UTC (2 p.m. ET) before slipping somewhat, at $15,694 as of press time. 

Constantin Kogan, managing partner at investment firm Wave Financial, sees an upside signal in the Power of Balance indicator, which uses opening, closing, high and low daily pricing to determine market movements. “The Power of Balance indicator signals in favor of an upward breakout, most likely a test of $16,000,” Kogan said. 

Analysts seem to have found a short-term price floor, the area where order books will trigger buying, pushing the price back above that level if it does go that low. 

“We’ve been ranging between $14,600 to $16,000 since Nov. 5. Bitcoin seems to have found a local floor at the $15,000 price,” Andrew Tu, an executive at quant trading firm Efficient Frontier, told CoinDesk.

David Lifchitz, chief investment officer of ExoAlpha, echoed a similar assessment. “In the very short term, we may see some consolidation of the bitcoin price around $15,000, which would be healthy after the last powerful breakout, before grinding higher toward $20,000.”

btcnovembernov11
Spot bitcoin trading on Bitstamp in November.
Source: TradingView

“As BTC consolidates and more bullish fundamental news comes out for both bitcoin, like [Stanley] Druckenmiller coming out as an investor in BTC, and the general market, like the [Pfizer coronavirus] vaccine, it may provide the risk-on impetus to break above resistance at $16,000,” Tu added. 

The market hailed the potential for coronavirus vaccinations being deployed over the next several months. That has pushed up global equities since Monday and major indexes were positive on Wednesday.

Bitcoin’s correlation with the S&P 500 has been trending down this week, with Tuesday continuing Monday’s drop in the relationship of their price movements.

correlationsbtcspx2020nov11
Bitcoin’s 90-day correlation to the S&P 500 in 2020.
Source: Shuai Hao/CoinDesk Research

For Efficient Frontier’s Tu, some fundamental aspects that would cause traditional markets to dump may simultaneously pump bitcoin. “[U.S. President] Trump’s posturing around the election result and the multiple lawsuits and recounts coming from his administration may provide enough political instability to cause BTC to bid upwards.”

Ether in ETH 2.0 surpasses 50K

Ether (ETH), the second-largest cryptocurrency by market capitalization, was up Tuesday, trading around $465 and climbing 3.5% in 24 hours as of 21:00 UTC (4:00 p.m. ET).

The amount of ether that has been staked in Ethereum’s 2.0 upgrade smart contract passed 50,000 ETH Tuesday. It’s at 50,977 ETH, according to data aggregator Glassnode, and is worth over $23 million as of press time.

totalstakedeth20
Total ether staked in ETH 2.0’s smart contract since its launch.
Source: Glassnode

The Ethereum 2.0 contract launched Nov. 3. Users must stake at least 32 ETH in the contract in order to participate in the network upgrade, which is expected to enhance its security and scalability while maintaining the transaction history and functionality of existing ether balance. 

Ben Chan, vice president of engineering at oracle provider Chainlink, told CoinDesk he is bullish on ETH 2.0 prospects but that more scaffolding still needs to be built for ETH 2.0 developers. “I think it needs more community support, more tooling and turnkey staking solutions,” Chan said.

Other markets

Digital assets on the CoinDesk 20 are mixed Wednesday. Notable losers as of 21:00 UTC (4:00 p.m. ET):

Notable losers:

Commodities:

  • Oil was down 0.60%. Price per barrel of West Texas Intermediate crude: $41.53.
  • Gold was in the red 0.69% and at $1,864 as of press time.

Treasurys:

  • The 10-year U.S. Treasury bond yield climbed Wednesday, jumping to 0.982 and in the green 1.4%.
https://www.coindesk.com/coindesk20
The CoinDesk 20: The Assets That Matter Most to the Market
Source: https://www.coindesk.com/coindesk20

https://www.coindesk.com/market-wrap-bitcoin-fails-50k-eth-smart-contract

Original Article
Author: btcethereumadmin

Market Wrap: Bitcoin Hangs Around $18K While Ether Locked in DeFi Declines – BTC Ethereum Crypto Currency Blog

CoinDesk 20 Bitcoin Price Index

Market Wrap: Bitcoin Hangs Around $18K While Ether Locked in DeFi Declines

Bitcoin steadied around $18,000 after record volumes on Wednesday while Ethereum 2.0 may be causing some investors to move ether out of decentralized finance (DeFi).

  • Bitcoin (BTC) trading around $18,026 as of 21:00 UTC (4 p.m. ET). Gaining 2.1% over the previous 24 hours.
  • Bitcoin’s 24-hour range: $17,364-$18,170
  • BTC above its 10-day and 50-day moving averages, a bullish signal for market technicians.
btcnov19
Bitcoin trading on Bitstamp since Nov. 17.
Source: TradingView

Bitcoin’s price rise stalled somewhat Thursday, with the world’s oldest cryptocurrency hitting as high as $18,170 before dipping below the $18,000 level, but back to $18,026 as of press time. 

Volume contributed to the weakening price action. At $1.79 billion, Wednesday was the highest volume day for major USD/BTC spot exchanges since way back on March 13, when volumes hit $1.98 billion the day after the “Black Thursday” crash. Today, daily volume on these exchanges were at a comparably tepid $867 million. 

volumesnov19
Daily bitcoin volumes on major USD/BTC exchanges.
Source: CoinDesk Research/Shuai Hao

A volume pullback from the second-largest day on the USD/BTC spot market in 2020 isn’t deterring analysts on their bullish prognostications. 

“The current upward move seems more sustainable than the 2017 bull run as institutional investors are now positioning in bitcoin whereas it was only retail speculation back in 2017,” said Elie Le Rest, partner at quant firm ExoAlpha. “Bitcoin confirms by its recent price move that it has a place in a diversified portfolio.”

“The market’s infrastructure, regulatory regime and overall maturity is much more robust than previously,” said John Willock, CEO of crypto asset manager Tritium. “I fully expect a couple of pullbacks from these nominal mile markers such as $18,000, $19,000 and $20,000, but I do expect we should see the overall momentum continue through the rest of the year.”

Since Oct. 20, bitcoin’s 30-day volatility has been steadily rising, indicating that some price gyrations may still be on the horizon.

btcvolatilitynov19
Bitcoin 30-day volatility in 2020.
Source: Shuai Hao/CoinDesk Research

“No assets go parabolic forever,” noted Michael Gord, chief executive officer for trading firm Global Digital Assets. “Bitcoin has gone up over 50% in the past month and is due for a correction.”

btcpastmonthnov19
Bitcoin’s performance on Bitstamp the past month.
Source: TradingView

“Long term I’m still very bullish and still seeing increasing interest from more traditional investors in bitcoin and other digital assets,” Gord added. 

Investors are certainly looking at the derivatives market, with bitcoin futures (over $6 billion) and options (over $4 billion) open interest hitting new highs. CME, a professional investor venue, has flirted with $1 billion in bitcoin open interest this week, a sign institutions are increasingly hedging crypto positions.

skew_btc_futures__aggregated_open_interest-30
Bitcoin futures open interest the past year.
Source: Skew

Even permabulls like Henrik Kugelberg, a Sweden-based over-the-counter crypto trader, are prepared for some bumps in the road should bitcoin work its way to an all-time high. 

I expect a much larger drop pretty soon,” Kugelberg told CoinDesk. “But in all I can see BTC going to $23,000-$24,000 in the next month or two.”

Ether moving out of DeFi

The second-largest cryptocurrency by market capitalization, ether (ETH), was up Thursday, trading around $475 and climbing 0.55% in 24 hours as of 21:00 UTC (4:00 p.m. ET).

The amount of ether “locked” in decentralized finance, or DeFi, is declining. The fall began Nov. 14, going from 8.9 million to 7.7 million ETH as of press time, according to aggregator DeFi Pulse.

defipulsenov19
Total ether locked in DeFi the past three months.
Source: DeFi Pulse

Jean-Marc Bonnefous, managing partner for investment firm Tellurian Capital, suspects some of the ether movement out of DeFi might have to do with Ethereum’s ambitious “2.0” project. This requires some capital allocation to a smart contract set aside for staking something known as the “beacon chain” to launch the new network

“There is the need to find another 400,000 ETH to fill the first phase of staking into ETH 2.0 by the end of November,” said Bonnefous. “So this might explain some of the leakage out of DeFi.”

Other markets

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

Notable losers:

Equities:

Commodities:

  • Oil was up 0.71%. Price per barrel of West Texas Intermediate crude: $41.88.
  • Gold was in the red 0.30% and at $1,866 as of press time.

Treasurys:

  • The 10-year U.S. Treasury bond yield fell Tuesday, dipping to 0.855 and in the red 2.7%.
coindesk20november

https://www.coindesk.com/market-wrap-bitcoin-hangs-18k-ether-defi-declines

Original Article
Author: btcethereumadmin