Market Wrap: Bitcoin Exceeds $ 15.three,00zero; Ether up 210% in 2020
Bitcoin hits new highs during a spike above $ 15,000 while investors may overlook the benefits of the aether in 2020.
- Bitcoin (BTC) is trading around $ 15,087 as of 9:00 PM UTC (4:00 PM ET). Gain of 7.7% in the last 24 hours.
- Bitcoin's 24-hour range: $ 14,005 to $ 15,306
- BTC above its 10-day and 50-day moving averages, a bullish signal for market technicians.
Bitcoin trading on Bitstamp since November 2nd.
The price of Bitcoin rose to $ 15,306 on Thursday at 3:50 UTC (10:50 a.m. CET) and hit its highest price since Jan 8, 2018, when the Bitcoin high was $ 15,360, according to CoinDesk 20 data. It has gone down since then, trading at $ 15,087 at the time of going to press.
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"Bitcoin is above the psychological threshold of $ 15,000 today due to strong positive momentum after the resistance was removed from 2019," said Katie Stockton, technical analyst for Fairlead Strategies.
Momentum in terms of volume was strong on the leading USD / BTC spot exchanges on Thursday. At press time it was $ 1,233,248,261, the highest since Oct. 21 when the volume hit $ 1,273,812,127.
Spot BTC / USD volume on major exchanges over the past month.
Source: Shaui Hao / CoinDesk Research
Stockton suspects the momentum could weaken, which could lead to a fall in prices. "There are some signs of short-term upside exhaustion from an overbought / oversold perspective that support a week of consolidation for a few weeks, but we would consider this to be healthy from a technical perspective."
Analysts still see Bitcoin as an advantage to bet on in the long term in uncertain times.
"The US will press the issue button again, no matter who wins the White House," said Henrik Kugelberg. Next year, "there will likely be more individual support payments around the world, and some of that money will inevitably go into Bitcoin."
"The macroeconomic situation in the US and elsewhere is far more uncertain, and concerns about the resurgence of COVID-19, which will bring the economy back on track, are not entirely unfounded," said Guy Hirsch, US executive director at Multi-Asset Brokerage eToro . "All in all, it feels like a perfect storm for retail (bitcoin) rollout, kicking in right at the start of an expected wave of institutional capital," he added. While most markets are trending up along with crypto on Thursday, the US dollar index, a measure of the greenback versus a basket of other fiat currencies, is in the red at 0.88% on Thursday at press time which is a decrease of 1.6% since the beginning of November.
The US Dollar Index (DXY) since November 1st.
In the futures market, open interest for bitcoin contracts was back at $ 5.4 billion, with CME's $ 804 million taking third place among venues as institutional investors poured in cash. The CME is a US-regulated exchange for larger investors and brokers, therefore open. Interest rate growth is a signal that large players are placing hedges and directional positions as part of a Bitcoin strategy.
Bitcoin futures are open for the past year.
"Interestingly, while aggregate futures open interest (OI) gains were back to $ 5.4 billion (highs in late October), they were very stable and managed," said Denis Vinokourov, head of research at digital asset prime broker Bequant . "This suggests that the more regulated companies operating in the current ecosystem are taking a more pragmatic approach to the current FOMO."
Ether outperforms Bitcoin
The second largest cryptocurrency by market cap, Ether (ETH), rose Thursday, trading at $ 414 and rising 3.4% in 24 hours from 9:00 PM UTC (4:00 PM ET).
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Bitcoin boosters like to talk about their price gains in 2020 as a hedge against an uncertain global economy. However, Ether has fared even better than Bitcoin this year, up 210% versus Bitcoin's 95% gains.
Bitcoin's performance compared to ether in 2020.
Source: Shuai Hao / CoinDesk Research
John Willock, CEO of crypto-liquidity provider Tritum, said investors appreciate the potential of Ether as both a hedge and a bet on the possible future of funding.
"Ether has similar properties to Bitcoin as a hedge against general economic uncertainties, but also has the added value of a benefit for the network it operates," said Willock. "With the long-awaited upcoming upgrade of the proof-of-stake at ETH 2.0, it will become a profitable instrument from an investment perspective that has a much broader appeal."
The digital assets of CoinDesk 20 are all green on Thursday. Notable Winners as of 9:00 PM UTC (4:00 PM ET):
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- Oil was down 1.5%. Price per barrel of West Texas Intermediate Crude: $ 38.52.
- Gold was in the green at 2.5% and at $ 1,950 at press time.
- US Treasury bond yields were mixed on Thursday. Yields, moving in the opposite direction as price, rose the most on the two-year bond, rising to 0.149 and in the green to 1.3%.
The CoinDesk 20: The assets that matter most to the market