Market Wrap: Bitcoin Traders Cautious After China Crypto Ban, DeFi Outperforms

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Bitcoin was slightly lower on Monday as traders remained cautious about regulatory crackdowns from China and elsewhere.

The cryptocurrency has traded at around $ 43,000 during press time and is roughly flat over the past 24 hours. Analysts check block data on buyer signals, although it may be too early to know if sellers have fully surrendered.

It now appears that some buyers have shifted their focus away from bitcoin and switched to decentralized financial (DeFi) tokens following the Chinese crackdown on cryptocurrency. For example, Messari data shows that the PERP token initially rose about 55% to $ 17 on Monday, although the price jumped to around $ 15 in press time. PERP is the useful token facilitating and encouraging the decentralized governance of the Perpetual Protocol.

Analysts expect the Chinese crypto industry to disappear due to the recent ban.

“I think OTC platforms that operate from the big exchanges will close,” said Bobby Lee, founder and CEO of the Ballet Wallet Service and former head of BTCC, once one of the largest bitcoin exchanges in China. in an interview with CoinDesk. “OTC” refers to over-the-counter trading, or no exchange.

And on Monday, Ethereum mining pool SparkPool said it plans to discontinue services for all of its users by Sept. 30.

Latest Prices

  • Bitcoin (BTC), $ 43,075, -0.4%
  • Ether (ETH), $ 2,999, -1.8%
  • S&P 500: -0.3%
  • Gold: $ 1,751, + 0.0%
  • 10-year Treasury yield closed at 1.487%

Income of Bitcoin fund

Investors raised $ 95 million in digital asset products last week, more than double the speed of the previous week, according to weekly CoinShares report.

With the headwinds digital assets have faced recently, such as China’s ban, the inflows suggest that prices have declined possibly as buying opportunities, Lyllah Ledesma of CoinDesk reported.

Flows into all cryptocurrencies during the week ended Sept. 24 were the most since the $ 98 million in the week to Sept. 3, and brought total flows over the past six weeks to $ 320 million.

Bitcoin has seen the largest inflows of any crypto investment product with a total of $ 50 million, also the most in three weeks.

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Test of purchase conviction

Analysts question whether bitcoin owners can sustain enough purchasing power to sustain further prices in the fourth quarter. Prices have now returned close to the cost base for most short-term owners, similar to September 2020, which preceded price.

This time, however, “the 50% + correction in May resulted in an outflow of many retailers and investors, and so became interested in the [Bitcoin] protocol has declined since early 2021, “Glassnode wrote in blog post.

About 58% of short-term owners are already experiencing losses (current BTC price below the acquired price), according to Glassnode data. Owners who have entered over the past two months may decide to sell their BTC loss, which could lower prices or accumulate more BTC in hopes of profiting.

The diagram below shows the ratio of market value to realized value (MVRV), which measures the market capitalization of BTC in relation to its realized market value. The current MVRV suggests that BTC is trading at approximately its fair value after the May sale.

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Altcoin roundup

  • DeFi tokens PERP, DYDX leads crypto market higher: Native signs of decentralized trading platforms like Perpetual Protocol and dYdx are growing as China’s cryptocurrency crackdown has seen centralized exchanges grow to comply with new regulations. The Perp protocol protocol’s PERP token has grown 55% in the past 24 hours, reaching $ 17 per token, reported CoinDesk’s Omar Godble. Derivatives DEX dYdx recorded a trading volume of more than $ 4.3 billion in the past 24 hours, surpassing Coinbase’s $ 3.7 billion with Nasdaq’s centralized cryptocurrency exchange.
  • Real estate X-token sales earn more than $ 12.5 million in less than an hour: Ethereum-scale product Immunable X’s token sale on CoinList sold out in less than an hour and raised $ 12.5 million for the project, reported Jamie Crawley of CoinDesk. Of the 720,000 accounts registered to participate in the sale, only about 25,000 (3.6%) were able to buy due to the high demand, Immutable announced on Monday. The company said it aims for the IMX token to be Ethereum’s “Strip for NFT,” offering a powerless non-refundable token and trading, in relation to payment company Stripe.
  • Cardano’s business arm will invest $ 100 million in DeFi, NFTs and blockchain education: Emurgo, Cardano’s commercial and corporate arm, is investing $ 100 million to “accelerate the development of the Cardano ecosystem,” Emurgo CEO Ken Kodama announced Sunday at the Cardano Summit 2021. Emurgo also said it will pour additional funding into African Adanian Labs for artificial intelligence, blockchain and smart technologies. Cardano founder Charles Hoskinson also recently donated $ 10 million to establish the Hoskinson Center for Formal Mathematics at Carnegie Mellon University.

These News

  • Analysts Set Negative Ether as Weekly Chart Tips
  • China Ethereum Mining Pool SparkPool will stop all services due to repression
  • Ethereum Developer Virgil Griffith Pleads Guilty to Conspiracy Charge in North Korean Sanction Case
  • Binance Limit Offers in Singapore
  • Scaramucci says most institutional investors remain hesitant to invest in crypto: a report

ICYMI:

  • NFTs Revive Era Dot-Com Era Over Domain Names

Other markets

Most digital assets in the CoinDesk 20 ended the day lower.

Famous winners from 21:00 UTC (16:00 ET):

  • Filecoin (FIL), + 4.7%

Notable losers

  • Uniswap (UNI), -6.6%
  • Aave (AAVE), -4.3%

Source

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