As Bitcoin approaches $ 9,600, gold exceeds $ 1,900, and DeFi’s liquidity is constantly growing.
- Bitcoin (BTC) is trading around $ 9,592 as of 20:00 UTC (4 pm EDT). Slipping 0.03% in the last 24 hours.
- Bitcoin 24-hour range: $ 9,475- $ 9,601
- BTC above the 10-day and 50-day moving averages, a bullish signal for market techs.
Gold is on the verge of a record high, 0.80% on Friday, at $ 1,901 per ounce. Sweden-based over-the-counter bitcoin trader Henrik Kugelberg sees gold approaching its all-time high as positive for the world’s oldest cryptocurrency. “Bitcoin will spend $ 20,000 on a surge. I suspect that a new normal discounted bitcoin price will be around $ 15,000 in 2021, as if it had been around $ 9,000 in 2020. ”
Bullish bitcoin traders love to talk about gold as they see similarities between the yellow metal and the cryptocurrency. “I think we are only a couple of weeks or months away from a strong bitcoin continuation as gold hits $ 1,900 today,” said William Purdy, a New York-based cryptocurrency and capital options trader.
In fact, the jump in gold this week came when Bitcoin posted gains and the performance of the U.S. S&P 500 stock index was flat again by 2020.
Kugelberg is pessimistic about stocks for the 2020 balance. “I think there will be at least a 30% drop in stocks on average no later than the fourth quarter. So where to go For real assets with lasting value, ”said Kugelberg. He mentioned gold, bitcoin and property as “real assets”.
“Bitcoin bulls have momentum on their side for now,” said Alessandro Andreotti, an Italy-based over-the-counter bitcoin trader. “The crypto market is likely to be heading towards a bullish continuation from here.”
Within cryptocurrencies, ether is doing even better than bitcoin this week. ETH / BTC, i.e. the price of ether in bitcoin, has seen a jump in recent days.
Ether prices have risen nearly 12% against bitcoin, said Aaron Suduiko, research analyst for cryptocurrency exchange OKCoin. “It will be interesting to see if trends develop in case more DeFi projects continue to grow.”
Uniswap crosses $ 100 million in liquidity
The second largest cryptocurrency by market cap, ether (ETH), rose on Friday trading around $ 283 and rising 3.6% in 24 hours from 20:00 UTC (4:00 pm EDT).
Read more: Ether leaves Bitcoin behind with 2020 profit of over 100%
“The recent ether gains are due to the ongoing thematic talk on social media about new DeFi projects that have shown considerable force,” said Purdy, the cryptocurrency and capital options operator. In fact, Uniswap, a decentralized exchange (DEX), for trading multiple DeFi project tokens, topped $ 100 million in liquidity on Friday.
In place of order books, Uniswap uses liquidity pools in which investors can “bet” the cryptocurrency and make profit or “yield” from trading fees on the DEX. This liquidity is what enables Uniswap merchants to swap quickly between ether and various Ethereum-based ERC-20 tokens, with total daily volume reaching $ 71 million per day, according to data aggregator Dune Analytics.
Other markets
The digital assets in CoinDesk 20 are mostly red on Friday. Notable winners as of 20:00 UTC (4:00 pm EDT):
Read more: Arca’s flagship crypto hedge fund increased 77% in 2020
Notable losers as of 20:00 UTC (4:00 pm EDT):
Read more: Carlos Ghosn’s $ 600K Bitcoin Escape Fee Paid Through Coinbase
Read more: Crypto’s $ 35T Moment Could Come From Analog World Stock Listings
- Oil has risen 0.40%. Price per barrel of West Texas Intermediate crude: $ 41.21
Read more: No one has traded Bitcoin options on Bakkt for more than a month
- US Treasury bonds were combined on Friday. Yields, which move in the opposite direction of the price, decreased more in the 2 years, in the red 4.3%.
Read more: Banks will not rush to hold cryptocurrencies
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