BitcoinÃ¢ÂÂs price tested $10,800 to close out September while despite some market deflation, investors continue pushing crypto into DeFi.
- Bitcoin (BTC) trading around $10,701 as of 20:00 UTC (4 p.m. ET). Slipping 0.27% over the previous 24 hours.
- BitcoinÃ¢ÂÂs 24-hour range: $10,657-$10,859
- BTC above its 10-day and 50-day moving averages, a bullish signal for market technicians.
BitcoinÃ¢ÂÂs price dipped down to as low as $10,657 Wednesday, bouncing into the $10,800 range and settling to $10,701 as of press time.ÃÂ
Jason Lau, chief operating officer of cryptocurrency exchange OKCoin, said that while bitcoin wasnÃ¢ÂÂt able to hit fresh 2020 highs in September, heÃ¢ÂÂs optimistic the cryptocurrency can still push upward heading into the fourth quarter of 2020. Ã¢ÂÂBitcoinÃ¢ÂÂs price momentum is still positive, with its pullbacks leaving higher highs,Ã¢ÂÂ Lau told CoinDesk. Ã¢ÂÂThis is signalling a possible further continuation of this upwards move.Ã¢ÂÂ
Quantitative trading firm QCP Capital wrote in a September-capping investor note that bitcoin and ether were able to stay above Ã¢ÂÂkeyÃ¢ÂÂ price points for the month, which it sees as a pragmatic sign. Ã¢ÂÂThe key support from the early month lows of $10,000 on BTC and $310 on ETH both saw substantial buying demand,Ã¢ÂÂ QCP wrote. Ã¢ÂÂThis prevented any cascading short gamma selling into quarter-end, which had been our fear if those levels broke.Ã¢ÂÂÃÂ
Constantin Kogan, partner at cryptocurrency fund-of-funds BitBull Capital, noted a jump in the number of new entities on the Bitcoin network, its highest level since October 2018, as a sign of positive sentiment. New unique addresses in Bitcoin are described by data aggregator Glassnode as Ã¢ÂÂentities that appeared for the first time in a transaction of the native coin in the network.Ã¢ÂÂ
Ã¢ÂÂWeÃ¢ÂÂre seeing a spike in activity by new participants coming into BTC not yet reflected in price. It doesnÃ¢ÂÂt happen often,Ã¢ÂÂ Kogan told CoinDesk regarding the new entities metric. Ã¢ÂÂThis is what traders call a divergence; in this case the trend looks more bullish.Ã¢ÂÂÃÂ
Related: DeFi Summer; Bitcoin Fall
Over in the bitcoin futures market, funding rates are now mostly in positive territory on major derivatives venues. This is a reversal from the past week and a sign bullish traders are again entering the market, according to OKCoinÃ¢ÂÂs Lau.
Ã¢ÂÂBitcoin perpetual swaps funding rates have started turning positive,Ã¢ÂÂ Lau told CoinDesk. Ã¢ÂÂThis indicates that investors are more willing to go long at current price levels.Ã¢ÂÂ
DeFi crosses $11 billion locked
Ether (ETH), the second-largest cryptocurrency by market capitalization, was down Wednesday trading around $355 and slipping 0.32% in 24 hours as of 20:00 UTC (4:00 p.m. ET).ÃÂ
The amount of cryptocurrency Ã¢ÂÂlockedÃ¢ÂÂ or held in decentralized finance (DeFi) protocols, topped $11 billion on Tuesday, according to data aggregator DeFi Pulse.
Almost 20% of the total locked is in decentralized exchange Uniswap, which despite declining volumes topped $2.29 billion in total liquidity on Tuesday. Alessandro Andreotti, a cryptocurrency over-the-counter trader based in Italy, said that although the DeFi market may be cooling since JuneÃ¢ÂÂs explosion of protocol token launches, its ascension will continue Ã¢ÂÂ although perhaps at not so fast a pace.ÃÂ
Ã¢ÂÂI think DeFi will keep on growing, even though its growth until now has been parabolic,Ã¢ÂÂ said Andreotti. Ã¢ÂÂMany new projects and exchanges are coming out right now, so I see no signs of it slowing down at this time.Ã¢ÂÂ
Digital assets on the CoinDesk 20 are mostly in the green on 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):
- Oil was up 2.3%. Price per barrel of West Texas Intermediate crude: $40.05.
- Gold was in the red 0.50% and at $1,887 as of press time.
- U.S. Treasury bond yields all climbed Wednesday. Yields, which move in the opposite direction as price, were up most on the 10-year, jumping to 0.687 and in the green 5.8%.
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