Market Wrap: Bitcoin Holds Above $ 30,000 But Price Chart Looks ‘Ugly’

[ad_1]

Bitcoin rebounded to around $ 32,200 after hitting a 2.5-week low early Friday, near $ 31,000.

According to Edward Moya, senior market analyst for Oanda, the largest cryptocurrency by market value may have been supported by a CoinDesk report that Bank of America has approved bitcoin futures trading for certain clients.

“This is a significant commitment for the Americas’ second largest bank and signals that interest in cryptocurrency trading is here to stay,” Moya wrote in an email. “On Wall Street, if a bank sees an opportunity to do something risky, others will easily justify following their lead. ”

Latest prices

S&P 500: 4,327.1, -0.75% Gold: $ 1,810.9, -1.01% The 10-year Treasury yield closed at 1.299%, up from 1.303% on Thursday

Analysts said bitcoin could prepare for a higher or lower price breakout after trading in a range of around $ 30,000 to $ 40,000 over the past eight weeks.

The big concern is that a fall below the psychological level of $ 30,000 could trigger further selling as options traders seek square positions.

“There is a big movement to come,” blockchain analyst William Clemente III wrote in Anthony Pomplianos’ newsletter on Friday. Theoretically, we could be looking at this big move in the next few days, but it could take up to three full weeks. “

The breakout looks more likely to be on the downside, based on the appearance of the bitcoin price chart, according to Mati Greenspan, founder of cryptocurrency and currency analysis firm Quantum Economics.

“Bitcoin’s chart looks really ugly right now,” Greenspan wrote in his newsletter. “The downward slope that has materialized over the past few days gives the impression that gravitational forces are calling for a retest of the red line support at $ 20,000, the previous all-time high. In technical terms, this is called surrender.

Circle and crypto investors

Earlier this month, Circle, the company behind the fast-growing USDC stablecoin, announced its intention to become a public company at a valuation of $ 4.5 billion, through an agreement with a company of special purpose acquisition (SPAC).

Charlie Morris, founder of ByteTree Asset Management, speculated this week that the deal could end up attracting more investors to cryptocurrencies.

This is undoubtedly the starting stock for the cautious, Morris wrote on July 14 in his weekly bulletin.

Big investors might find it hard to resist the action due to the rapid growth of the USDC: Stable coin supply has soared to over $ 25 billion, from around $ 3.9 billion at the start of the year. It’s clear to the eye that this business is growing like a weed, Morris wrote.

What might make new stocks more attractive to portfolios is that USDC fuels crypto, but has no volatility, making it a natural haven from asset managers or miners whose fortune is tied to crypto prices, according to Morris.

But it might just be a camel’s nose under the tent:

The old world will eventually own all of these stocks anyway, and that’s why index funds always amuse me. They are simply buying whatever is stuck in front of them, which means investors who try to avoid crypto will end up owning it. Soon everyone will be invested in crypto and crypto stocks whether they like it or not, and the list of circles will be crowd-pleasing.

The outstanding dollar stablecoin USDC has jumped this year to over $ 25 billion.

Source: Coin Metrics, CryptoCompare, CoinGecko

What’s up with the tether?

The parabolic growth of the Giant Stable Tie (USDT) market cap suddenly came to a halt in late May, just as the price of bitcoin was reaching all-time highs.

According to analysts and market participants who spoke to CoinDesks Muyao Shen, the sudden hiatus reveals that the world’s most traded cryptocurrency sees its dominance threatened by three unprecedented challenges combining into a perfect storm to shake up stablecoin.

China’s crackdown on cryptocurrencies and money laundering has stifled the ramp into crypto markets through OTC brokers, while listless bitcoin prices have slashed the market. incentive to invest: With money entering the market, there is less demand for ties, Rachel Lin, former vice president and founding partner of Singapore-based crypto investment firm Matrixport, told Shen. The rising star of the stable coin market is increasingly the USDC. I think USDC has a chance to compete in the stablecoins market in Asia against tether, said Justin Sun, who runs the Tron blockchain. Other questions have been raised recently by regulators and governments around the world about the USDT and other stablecoins. The market is steeped in bearish sentiment and traders are looking for a reason, said Noelle Acheson, head of market analysis at leading crypto broker Genesis Global Trading, a sister company of CoinDesk. His FUD (Fear, Uncertainty, and Doubt) season and tie vulnerabilities are almost always a part of this conversation.

A Tether executive, while acknowledging that demand for USDT has fallen, argued that the trend is not exclusive to the token.

Demand for tether comes and goes, and has been affected by declining demand in recent weeks, Paolo Ardoino, chief technology officer at Tether, said in a written response via a spokesperson.

USDT market capitalization versus bitcoin price

Source: Glassnode

Altcoin balance sheet

Thorchain Loses 4K Ether In Attack: Thorchain suffered an attack on the crypto trading protocol which drained around 4,000 ETH, worth around $ 7.7 million based on the price of ethers at the time of publication. The company tweeted that it will provide a more detailed assessment and recovery steps soon. Administrators wrote earlier that the network had been shut down while developers investigated the extent of the breach. While the Treasury has the funds to cover the amount stolen, we ask the attacker to contact the team to discuss the return of funds and a bonus commensurate with discovery, the administrators wrote on Telegram. Binance said it would no longer support stock-linked tokens, just three months after making them available on its trading platform. Binance announced on Friday that exchange tokens are not available for purchase on its website as of now, and support for these tokens will end on October 14, with all positions closed the next day. The struggling exchange, which has faced regulatory headwinds, said the move would allow it to focus on other products. FOX Token Rally: After ShapeShifts announced it would transform into a Decentralized Autonomous Organization (DAO), its FOX governance token increased 300% to $ 1.16 in a matter of hours. While the cryptocurrency has fallen back to $ 0.55 in the past 24 hours, it is still up nearly 200% this week, an outstanding performance given the broader market lull. Analysts are divided over whether the rally represents ever more intense search for yield or whether investors are applauding the advantage of ShapeShift’s forerunners as DAO.

Relevant news

Other markets

Most digital assets on CoinDesk 20 ended lower on Friday.

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

year of funding (YFI) -5.26%

[ad_2]