Bitcoin rallies against $ 50,000 resistance

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Cryptocurrencies ended the week on a high note as bitcoin broke above $ 48,000 for the first time since May. The world’s largest cryptocurrency has risen by around 4% in the past 24 hours and may face resistance of nearly $ 50,000 to $ 55,000 heading into the weekend.

On Thursday, Coinbase announced that it would buy more than $ 500 million in cryptocurrencies to supplement its holdings. Crypto exchange CEO Brian Armstrong also tweeted that Coinbase will invest 10% “of all profits in the future in crypto.”

Coinbase’s announcement encouraged bitcoin buyers to return to the $ 45,000 support level. The rise in Bitcoin prices also coincided with the stabilization of the stock markets after a pullback earlier this week.

Latest prices

Related: Bitcoin Breaks $ 48,000 For First Time Since May

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Several analysts have noted that the extreme overbought conditions have lifted since April, supporting the crypto rally.

“Right now, bitcoin and other cryptos have received technical support (as they were getting slightly oversold),” Santiago Espinosa, strategist at MRB Partners, wrote in an email to CoinDesk.

Related: Eurex To Launch Bitcoin ETN Futures To Meet Strong Demand

“At this point, some cryptos may continue to perform well if policymakers overlook inflationary pressures and regulatory issues don’t become a general issue,” Espinosa wrote.

Bitcoin correlations

Bitcoin’s negative correlation with gold has intensified in recent months as inflation expectations have eased. Gold is down about 6% year-to-date, compared to a 65% gain for bitcoin over the same period.

The correlation between bitcoin and the iShares long-dated Treasury bond exchange-traded fund (TLT) briefly turned positive in July as the crypto sell-off stabilized. Lately, bitcoin’s relief rally has coincided with a rally in the 10-year Treasury bond yield, which has stalled near the resistance level of 1.40%.

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Increase in the volume of futures contracts

Growth in bitcoin futures volume relative to spot volume may reflect greater participation from sophisticated traders. “Over the past year, futures and perpetual swaps have become the most popular financial instruments in crypto,” Delphi Digital tweeted. Futures and perpetual contracts account for over 60% of the total daily bitcoin volume.

Perpetuals are gaining ground relative to spot market activity and are quickly becoming the primary source of price discovery, according to Delphi.

Bitcoin perpetual swaps are a type of derivative in cryptocurrency markets similar to futures contracts in traditional markets.

Delphi also noticed a similar trend for the ether, although the spot markets still play a bigger role than the futures markets with this crypto.

Positioning of the minor

The Bitcoin Miner Positioning Index (MPI) has flattened over the past two weeks. The MPI tracks whether miners move their BTC positions up or down.

The MPI’s sideways move suggests that “profit taking by miners is clearly slowing as prices stagnate,” CryptoQuant wrote in a blog post on Friday.

CryptoQuant expects a downward price adjustment in BTC before a decisive move above the $ 50,000 price level. A price breakout could encourage miners to create positions.

Altcoin balance sheet

Cardano hits all-time high: Cardano (ADA), the native cryptocurrency powering Cardano’s public blockchain, hit a new all-time high and overtook Binance’s native token in terms of total market cap, reports Sebastian Sinclair of CoinDesk . It would appear that Alonzo’s upgrade is having a significant impact on investor sentiment. The upgrade aims to usher in smart contract functionality and address what critics have described as one of the network’s most glaring shortcomings.

Solana’s Luna Yield goes out: the Luna Yield decentralized financing protocol is offline. Luna’s website and all of her social media accounts have been taken down, according to SolPad, an initial digital offering (IDO) platform for the Solana blockchain. Some attribute the move offline to a carpet pull. A punch occurs when the creators of a project take off with funds from investors. Although no official confirmation has been given, the move would mark the first stack of its kind on Solana. An anonymous source told CoinDesk that more than $ 6.7 million in assets have been seized. The amount was verified by CoinDesk through the SOL scan block explorer.

OKEx Creates $ 10 Million Fund for GameFi Projects: Crypto Exchange OKEx has announced that it is launching a $ 10 million fund to help develop GameFi projects, or “play to win.” The money will come from the exchange’s $ 100 million OKEx BlockDream Ventures fund, which invests in blockchain projects, the company said. GameFi introduces financial mechanics into video games, allowing users to earn money while playing.

Relevant News: Other Markets

On Friday, all digital assets on CoinDesk 20 increased.

Notable 9:00 p.m. UTC (4:00 p.m. ET) winners:

polygon (MATIC) + 7.63%

the Graph (GRT) + 7.42%

algorithm (SOMETHING) + 7.27%

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