The price of Bitcoin hung around $ 22,400 – $ 22,800 after Thursday, the day full of spot volume, while branded DeFi protocols have most of the market for blocked encryption.
- Bitcoin (BTC) trades around USD 22,783 starting at 21:00 UTC (16:00 ET). Earned 0.68% in the last 24 hours.
- Bitcoin 24 Hour Range: $ 22,357 – $ 23,261 (CoinDesk 20)
- BTC exceeds its moving average of 10 hours and 50 hours on the hourly chart, a signal for market technicians.
The price of Bitcoin remained high on Friday, hovering around $ 22,400 – $ 22,800 for most of the last 24 hours and was $ 22,783 at the time of pressing.
“Bitcoin has continued to rise, supply has fallen, bears are not particularly resilient and institutions are buying all the currencies very quickly,” said Constantin Kogan, a partner at investment firm Wave Financial.
Read more: Ruffer’s investment used Coinbase to execute the $ 745 million Bitcoin purchase
“The $ 24,000 mark is not far off,” Kogan added. “There is a growing perception among analysts that the demand from institutional investors may overwhelm the supply of whales. [large crypto holders] and miners, whose sales in the past have had a tangible impact on the market. ”
Thursday was the day with the highest volume in 2020 for the eight exchanges pursued by CoinDesk 20, with over $ 4.7 billion in volume. On that day, Coinbase led the way with $ 1.6 billion in volume, significantly, given that Friday’s volume for the eight exchanges in the press was only $ 1.7 billion.
The huge rise in prices has eliminated many stock market orders as they were completed in the preliminary period, said Andrew Tu, an executive at Efficient Frontier. “On the stock market, liquidity on the sell side is much thinner than liquidity on the buy side, because we are in unexplored territory,” Tu told CoinDesk. “The lack of liquidity in sales means that the price of bitcoin may rise faster, as we have seen since it broke the $ 20,000 figure.”
However, the inevitable exhaustion seems to have taken place on Friday. “While there are some early signs of fatigue and profit, what is remarkable are the record volumes,” said Jason Lau, chief operating officer of OKCoin in San Francisco.
In the derivatives market, open interest rates and volume have increased in the CME futures market, known as an institutional instrument for hedging traditional commodities as well as bitcoin.
“Dec. 17 is recorded as the highest volume day on CME, with an open interest growing at the highest level “, mentioned Vishal Shah, an options trader and founder of Alpha5 derivative stock exchanges.
Read more: Deribit’s new options allow Bitcoin traders to bet on the rally at $ 100,000
Enthusiasm abounds to end a wild ride for Bitcoin in 2020, although the momentum may disappear in the coming weeks of the holiday, according to analysts.
“I feel very optimistic, although it exists so quickly that we can go before we see a correction,” said Michael Gord, chief executive of quantum trading firm Global Digital Assets. “It will be interesting to see what happens now that we are in the way of discovering prices and that the mainstream media is starting to notice again.”
Only five protocols have $ 10 billion stuck in DeFi
The second largest cryptocurrency after market capitalization, Ether (ETH) rose on Friday, trading around $ 648 and rising 1.2% in 24 hours from 21:00 UTC (16:00 ET) .
Five branded protocols – stablecoin Maker, packaged bitcoin (WBTC), Compound and Aave creditors along with the decentralized exchange Uniswap – represent $ 10.5 billion in decentralized finance (DeFi) of $ 16 billion total blocked, according to DeFi Pulse.
The first five DeFi protocols in terms of total locked value.
George Clayton, executive partner of investment firm Cryptanalysis Capital, says the increase in the locked value of DeFi is strongly correlated with the rise in cryptocurrency prices in general.
„The increase in the total blocked value (TVL) is due to the crypto appreciation compared to [the U.S. dollar]. Deposits are hectic, not rising, “Clayton told CoinDesk. However, he is optimistic about DeFi, especially if some scaling pain can be resolved. “I expect these numbers to rise, especially if ETH 1.5 can decline or if these DeFi platforms can be ported to Cardano or AVAX or Solana.”
Other markets
The digital assets on CoinDesk 20 are mixed on Friday, mostly red. Notable winners starting at 21:00 UTC (16:00 ET):
Read more: Coinbase chooses Goldman Sachs to lead future IPO: report
- Oil rose 1.2%. West Texas crude oil price per barrel: $ 48.98.
- Gold was 0.23% red and at $ 1,880 at the time of pressing.
- The yield on 10-year US Treasury bonds rose on Friday, rising to 0.945 and green by 0.71%.
