- Bitcoin (BTC) trading around $18,026 as of 21:00 UTC (4 p.m. ET). Gaining 2.1% over the previous 24 hours.
- Bitcoinâ€™s 24-hour range: $17,364-$18,170
- BTC above its 10-day and 50-day moving averages, a bullish signal for market technicians.
Bitcoinâ€™s price rise stalled somewhat Thursday, with the worldâ€™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.Â
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 â€œBlack Thursdayâ€ crash. Today, daily volume on these exchanges were at a comparably tepid $867 million.Â
A volume pullback from the second-largest day on the USD/BTC spot market in 2020 isnâ€™t deterring analysts on their bullish prognostications.
â€œThe 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,â€ said Elie Le Rest, partner at quant firm ExoAlpha. â€œBitcoin confirms by its recent price move that it has a place in a diversified portfolio.â€
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â€œThe marketâ€™s infrastructure, regulatory regime and overall maturity is much more robust than previously,â€ said John Willock, CEO of crypto asset manager Tritium. â€œI 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.â€
Since Oct. 20, bitcoinâ€™s 30-day volatility has been steadily rising, indicating that some price gyrations may still be on the horizon.
â€œNo assets go parabolic forever,â€ noted Michael Gord, chief executive officer for trading firm Global Digital Assets. â€œBitcoin has gone up over 50% in the past month and is due for a correction.â€
â€œLong term Iâ€™m still very bullish and still seeing increasing interest from more traditional investors in bitcoin and other digital assets,â€ Gord added.
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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.
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.Â
â€œI expect a much larger drop pretty soon,â€ Kugelberg told CoinDesk. â€œBut in all I can see BTC going to $23,000-$24,000 in the next month or two.â€
Ether moving out of DeFi
The second-largest cryptocurrency by market capitalization, ether (ETH),Â 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 â€œlockedâ€ 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.
Jean-Marc Bonnefous, managing partner for investment firm Tellurian Capital, suspects some of the ether movement out of DeFi might have to do with Ethereumâ€™s ambitious â€œ2.0â€ project. This requires some capital allocation to a smart contract set aside for staking something known as the â€œbeacon chainâ€ to launch the new network.Â
â€œThere 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,â€ said Bonnefous. â€œSo this might explain some of the leakage out of DeFi.â€
Digital assets on the CoinDesk 20 are mixed Thursday, mostly green. Notable winners as of 21:00 UTC (4:00 p.m. ET):
- litecoin (LTC) + 13.6%
- chainlink (LINK) + 5.3%
- xrp (XRP) + 4.6%
- orchid (OXT) – 6.8%
- ethereum classic (ETC) – 1%
- omg network (OMG) – 0.79%
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- The Nikkei 225 closed in the red 0.36% as investors grappled with the possibility of a coronavirus vaccine versus a rising number of daily cases.
- The FTSE 100 in Europe ended the day slipping 0.80% as European Central Bank (ECB) President Christine Lagarde cautioned fresh stimulus would be needed.
- In the United States the S&P gained 0.50% as investors hit the buy button on tech stocks that may fare well amid economic concerns regarding rising coronavirus cases.
- 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.
- The 10-year U.S. Treasury bond yield fell Tuesday, dipping to 0.855 and in the red 2.7%.