Large trading volumes on the Bitcoin spot market are helping prices rise to a new record high. The Ethereum-based banned DeFi value is also setting records, with rising crypto values playing a role.
- Bitcoin (BTC) is trading around $ 39,143 as of 9:00 PM UTC (4:00 PM ET). Gain of 8.4% in the last 24 hours.
- Bitcoin’s 24-hour range: $ 36,382 to $ 40,324 (CoinDesk 20)
- BTC above the 10-hour and 50-hour moving averages on the hourly chart, a bullish signal for market technicians.
Bitcoin price continues to make incredible gains on Thursday, an upward trend that helped the world’s oldest cryptocurrency hit a record $ 40,324. However, the prices north of the new, large number were short-lived. A sell-off took nearly $ 3,000 off the price in 30 minutes, although it has since rebounded to $ 39,143 at press time.
“Bitcoin’s uptrend is being driven by institutions and institutional analysis pointing to price targets that are being requested by companies, including $ 146,000 from JPMorgan and $ 400,000 from Guggenheim,” said Guy Hirsch, US general manager for multi-asset brokerage eToro .
“There is likely to be some profit-taking that will result in mid-range price reductions, but all signs point to further spike in the short to medium term,” he added.
Continue reading: Bitcoin tops $ 40,000 for the first time and doubles in less than a month
“It was a wild first week of the year for Bitcoin, with that period already moving 15% to 20% a few times,” said Cindy Leow, investment manager at multi-strategy trading firm 256 Capital.
“This step is a mixture of 2013 and 2017 after halving the price movements, in which a practically vertical step was built up over many months in 2013, while in the rally at the end of 2016 many more regular corrections were made that dragged on for months”, added Leow. “Overall market sentiment appears to be a mixture of disbelief and euphoria, leading us to believe that retail has not yet peaked and there may still be room for this trend to develop.”
“We remain cautiously optimistic and note that funding rates for most crypto assets remain high, as do futures premiums and call volume,” concluded Leow.
Continue reading: CME Now Largest Bitcoin Futures Exchange As Institutional Interest Rises
Funding premiums on major derivatives remain high, indicating that traders are willing to pay quite a bit for leveraged positions.
“From here, I have an initial target of $ 50,000 and I would like to say we’ll get there in three to six months, but I think the power behind the market right now means we have the opportunity have to accomplish it in a couple of weeks. ”Said Chris Thomas, Head of Digital Asset at Swissquote Bank.
If the spot Bitcoin volume can continue to tear, Thomas’s prediction may not be an option. Daily volume on the eight exchanges tracked by CoinDesk 20 was over $ 5 billion for six consecutive days, including the $ 6.6 billion Thursday at press time.
“After $ 50,000, I think there will be some very realistic institutional vendors who will have to take profits as they have likely doubled their money by that point,” said Thomas. “It would be wise to do so, and a drop below $ 20,000, which is not ruled out, could lead to difficult conversations with your superiors.”
Nevertheless, 2021 has got off to a good start for the cryptocurrency market. “It’s early January and Bitcoin has broken through $ 40,000,” said Denis Vinokourov, head of research at Crypto Brokerage Bequant.
The value of crypto locked in DeFi is rising as investors pull out
Ether (ETH), the second largest cryptocurrency by market cap, gained on Thursday, trading at $ 1,245 and rising 3.00% in 24 hours from 9:00 PM UTC (4:00 PM ET).
The total value of decentralized funding (DeFi) topped the $ 22 billion mark for the first time on Thursday. Crypto investors “lock” assets in DeFi Smart contracts in order to generate a “return” or a percentage return in return for the provision of liquidity.
However, the amount of ether included in DeFi has dropped to below 6.8 million ETH at the time of going to press.
In addition, the amount of Bitcoin Locked has fallen sharply to 30,456, a 53% drop from its all-time high of 64,993 BTC in October.
Where investors are moving all of this crypto out of the DeFi sphere is unclear, but some level of profit-taking is likely to take place in a glowing market.
“The charts are a good leading indicator of price movements,” said Misha Alefirenko, founder of crypto market maker VelvetFormula. “That means people are paying back their BTC and ETH, and that looks very bearish.”
CoinDesk 20’s digital assets are mixed on Thursday, but mostly green. Notable Winners as of 9:00 PM UTC (4:00 PM ET):
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- Oil rose 0.85%. Price per barrel of West Texas Intermediate Crude: $ 50.94.
- Gold was in the red at 0.21% and at press time at $ 1,913.
- The 10-year US Treasury yield rose to 1.076 on Thursday and was in the green at 3.4%.