Bitcoin has performed well in the face of a bleak news cycle while stablecoin assets in the crypto ecosystem continue to grow.
Bitcoin trading on Coinbase since September 30.
Bitcoins price stumbled in the early hours of Friday, falling to as low as $10,362 on spot exchanges such as Coinbase around 5:00 UTC (1 a.m. ET) before rising to $10,515 as of press time.
Despite the continuous stream of negative news this past week, the crypto markets have remained resilient, according to Zachary Friedman, chief operating officer of brokerage Global Digital Assets.
If we look back, we have seen a hack of Kucoin, a major BitMEX lawsuit and even trouble in the traditional markets through the announcement that [U.S. Pres. Donald] Trump contracted COVID-19, Friedman said. Historically, these three collective events would have sent markets reeling. This shows that the market is increasingly filled with more bullish investors [who] believe in the fundamentals.
Bitcoins dip to $10,362 Friday is its lowest price point since Sept. 24, well before the recent torrent of bad news began and perhaps a sign of the worlds oldest cryptocurrencys capacity to recover quickly.
Bitcoin trading on Coinbase the past ten days.
Jean-Baptiste Pavageau, a partner at crypto quant trading firm ExoAlpha, anticipates some increased volatility ahead. Liquidity is a key metric for professional traders, said Pavageau. While BitMEX witnessed sometimes unusual price behavior on its exchange, it would not be surprising to observe more of these spikes and crashes while the liquidity dries-up.
Indeed, BTC/USD open interest on BitMEX, a measure of liquidity on derivatives exchanges, has dropped since the revelation of its legal troubles, going from $589 million just prior to the news Thursday to $461 million as of press time, a 21% decline.
Open interest in USD terms on BitMEX the past 24 hours.
As open interest on BitMEX wanes, investors are increasingly moving bitcoin to other exchanges. At one point, an outflow of over 11,000 BTC went to other exchanges at 01:00 UTC Friday, including 4,786 BTC to Binance, 3,899 BTC to Gemini and 989 BTC to Kraken, according to data analysis firm CryptoQuant.
BitMEX BTC outflows (red) and price (black) the past three months.
Its going to be a volatile couple of weeks, added Mostafa Al-Mashita, vice president of trading for Global Digital Assets. I would not be surprised to see another black swan event in the next two months, although bitcoins price action has been surprisingly bullish considering the news,
Volatility in bitcoin is positive news for options buyers, and that market has 34,100 BTC in bets placed for expiration on Oct. 30.
Open interest in bitcoin options by expiration.
The options market for October expiration provides some probabilities for bitcoins future price, as traders see a 63% chance of bitcoin over $10,000, a 50% chance over $10,500 and a 36% chance of $11,000 per 1 BTC.
Bitcoin price probabilities for October expiration.
Its a tough market at the moment, up one minute and down the next, said Rupert Douglas, head of institutional sales for crypto brokerage Koine. I still think there are risks to the downside. Markets dont like uncertainty and weve sure got that until early November.
Stablecoins over $20 billion
Ether (ETH), the second-largest cryptocurrency by market capitalization, was down Friday trading around $344 and slipping 2% in 24 hours as of 20:00 UTC (4:00 p.m. ET).
The total market capitalization of stablecoins has grown from $2.6 billion at the start of 2019 to $20 billion by late September. Tether (USDT), at $16 billion, leads the way, with U.S. dollar coin (USDC) in second at $2.5 billion followed by TrueUSD (TUSD) with a $507 million market cap.
Stablecoin market capitalization since 1/1/19.
A yield farmer who chooses to go by the handle devops199fan believes stablecoins provide an important role as an increasing market for stable assets strengthen the decentralized finance, or DeFi, ecosystem. The stablecoin market cap is starting to go parabolic, said devops199fan. I think were just getting started. In DeFi specifically, weve only scratched the surface of whats possible in terms of financial primitives and systems.
Digital assets on the CoinDesk 20 are mostly in the red Friday. One winner as of 20:00 UTC (4:00 p.m. ET):
Notable losers as of 20:00 UTC (4:00 p.m. ET):
The CoinDesk 20: The Assets That Matter Most to the Market
- Bitcoin analysts explain what's next in the aftermath of BTC plunging to $16.2K - Cointelegraph - November 28th, 2020
- Bitcoin loses steam after nearing all-time highs, but trader says it could be on track to $74,000 - CNBC - November 28th, 2020
- Bitcoin plunges by nearly $3,000 after closing in on its all-time record - CNBC - November 28th, 2020
- Veteran Analyst Says BTC Might See Further Correction but 'Prices Have Not Topped' | Markets and Prices - Bitcoin News - November 28th, 2020
- Bitcoin's Carnivore Cult Is Both Stupid and Correct - CoinDesk - Coindesk - November 28th, 2020
- Ether, XRP and other 'altcoins' rally as bitcoin heads for all-time high - CNBC - November 28th, 2020
- Mike Novogratz: Everyone Should Put 2% to 3% of Their Net Worth in Bitcoin | News - Bitcoin News - November 28th, 2020
- Why Bitcoin price just hit $19,000 for the first time in 3 years - Cointelegraph - November 28th, 2020
- Will 'money printer go brrr' rob Bitcoin of its all-time high? - Cointelegraph - November 28th, 2020
- Why Is Bitcoin's Price Rising? Here Are a Few Possible Answers - CoinDesk - November 28th, 2020
- OKEx Sees Biggest Bitcoin Outflow in 8 Months After Resuming Withdrawals - CoinDesk - CoinDesk - November 28th, 2020
- Bitcoin faces this final resistance zone before $20K all-time high - Cointelegraph - November 28th, 2020
- EURST Stablecoin Reinvention of the European Economy | Sponsored - Bitcoin News - November 28th, 2020
- Bitcoin hopes of record value of over $20,000 dashed after cryptocurrency falls again - Sky News - November 28th, 2020
- Should you invest in Bitcoin and how to do it - Telegraph.co.uk - November 28th, 2020
- Russian Hospitalized After Bitcoin Mining Farm Sets Apartment on Fire - CoinDesk - CoinDesk - November 28th, 2020
- Researcher Publishes Never Before Seen Emails Between Satoshi Nakamoto and Hal Finney - Bitcoin News - November 28th, 2020
- OKExs Withdrawal Suspension Isnt Behind Bitcoins Rally: Analysts - CoinDesk - CoinDesk - November 28th, 2020
- Bitcoin now has a 7% chance of beating $20K highs in the next 2 months - Cointelegraph - October 23rd, 2020
- For the first time since 2018 Bitcoin balances on exchanges fell below 2.5M - Cointelegraph - October 23rd, 2020
- Bitcoin top signal from 2017 reappears, but heres why it may not matter this time - Cointelegraph - October 23rd, 2020
- First Mover: PayPal Rushes In and Bitcoin Breaches $12K, While USDC Gains on Tether - CoinDesk - CoinDesk - October 23rd, 2020
- Macro Investor Dan Tapiero on Crypto Adoption: Emerging Economies Ahead of Developed States | News - Bitcoin News - October 23rd, 2020
- Ban All Ransomware Payments, in Bitcoin or Otherwise - CoinDesk - CoinDesk - October 23rd, 2020
- Hotel Bitcoin ATMs on the Rise With Addition of Swiss Hotel Dolder Grand | News - Bitcoin News - October 23rd, 2020
- World Gold Council Survey Shows Cryptocurrency Investment the 5th Most Popular in Russia - Bitcoin News - October 23rd, 2020
- Ethereum Q3 Volume Dwarfs Bitcoin's, Fueled by DeFi - Decrypt - October 23rd, 2020
- Crypto fans rejoice: Bitcoin rallies to the brink of $12,000 - Aljazeera.com - October 23rd, 2020
- 187,000 BTC Drained: Over $2 Billion in Bitcoin Leave the Top Exchanges Since June | Exchanges - Bitcoin News - October 19th, 2020
- A Former Goldman Sachs Hedge Fund Chief Has Predicted Bitcoin Will Surge To $1 MillionHeres Why - Forbes - October 19th, 2020
- Bitcoin minings future is green, and Russia has the best chance - Cointelegraph - October 19th, 2020
- Has Bitcoin Finally Met Its Match? - Forbes - October 19th, 2020
- Bitcoin rips and cruise ships: Bad crypto news of the week - Cointelegraph - October 19th, 2020
- Where Does Bitcoin Fit in the Global Reserve Currency Game? - CoinDesk - Coindesk - October 19th, 2020
- Enormous wall of money will send Bitcoin to $1M in 2025 Raoul Pal - Cointelegraph - October 19th, 2020
- Bitcoin's Intrinsic Value: Crypto Community Responds to Bank of England Governor | News - Bitcoin News - October 19th, 2020
- Bitcoin Price Ready For a New Pop Will It Do It Today? - InvestingCube - October 19th, 2020
- 'Enormous Wall of Money' Coming Into Bitcoin, Price to Reach $1 Million in 5 Years, Says Raoul Pal - Bitcoin News - October 19th, 2020
- Bitcoin and Ripple's XRP - Weekly Technical Analysis October 19th, 2020 - FX Empire - October 19th, 2020
- Blockchain Bites: Bitcoin on Ethereum The Whos, Whats and Whys - CoinDesk - CoinDesk - October 19th, 2020
- First Mover: Privacy Is Litecoin's Ace in the Hole as JPMorgan Touts Bitcoin - CoinDesk - CoinDesk - October 19th, 2020
- Hathor Merge Mining Pool Commands 33% of the Bitcoin Cash Hashrate - Bitcoin News - October 19th, 2020
- Cashfusion Use Increased by 328%, $200M in BCH Fused and Close to 20,000 Fusions | Privacy - Bitcoin News - October 19th, 2020
- The Silk Road Balance Sheet Discrepancy: Bitcoin Worth $4.8 Billion Still Missing | Featured - Bitcoin News - October 19th, 2020
- Bitcoins Taproot is ready to go, but it's unlikely to be included in the next release - Cointelegraph - October 19th, 2020
- How will the US presidential election affect the price of Bitcoin? - Cointelegraph - October 11th, 2020
- $12K Bitcoin price back on the table after BTC rallies above $11.4K - Cointelegraph - October 11th, 2020
- Coinbase's 'Mission' Violates the Spirit of Bitcoin - CoinDesk - CoinDesk - October 11th, 2020
- Bitcoin: the UK and US are clamping down on crypto trading here's why it's not yet a big deal - The Conversation UK - October 11th, 2020
- Lyn Alden: Bitcoin Correlations Depend on What Phase It Is In - CoinDesk - CoinDesk - October 11th, 2020
- UK Bans Sale of Crypto Derivatives to Retail Investors from January 2021 | News - Bitcoin News - October 11th, 2020
- Yearn Finance Token Value Slides 67%, While Locked Value Loses Over $300M | Altcoins - Bitcoin News - October 11th, 2020
- Bitcoin price holds $10.5K but a $30M sell wall looms overhead - Cointelegraph - October 6th, 2020
- Bitcoin To Hit $100,000 in Five Years as Demand and Adoption Increase - Report | Markets and Prices - Bitcoin News - October 6th, 2020
- Trump, price dots and COVID-19: 5 things to watch in Bitcoin this week - Cointelegraph - October 6th, 2020
- $8M Worth of 'Sleeping' Bitcoin Rewards from 2010 Moved the Day Before 'Black Thursday' - Bitcoin News - October 6th, 2020
- Interest in Bitcoin Soars in Egypt Amid Economic Crisis and Unemployment | News - Bitcoin News - October 6th, 2020
- A Major Tesla Investor Has Predicted Bitcoin Will Be Worth More Than $1 Trillion In Under 10 Years - Forbes - October 6th, 2020
- Crypto for Congress: Bitcoin Sent to All Congress Members' Campaigns | News - Bitcoin News - October 6th, 2020
- Stacking Satoshis: Leveraging Defi Applications to Earn More Bitcoin | Featured - Bitcoin News - October 6th, 2020
- FCA bans the public from Bitcoin and other cryptocurrency derivatives - Evening Standard - October 6th, 2020
- Pro-Crypto PAC Giving $50 in Bitcoin to the Campaign of Each Member of Congress - CoinDesk - CoinDesk - October 6th, 2020
- Ethereum Transaction Fees Fall 82%, as Defi Hype Eases | Altcoins Bitcoin News - Bitcoin News - October 6th, 2020
- Crypto for Congress sends $50 in Bitcoin to all US Congress members - Crypto News Flash - October 6th, 2020
- Abkhazia Lifts Two-Year Ban on Bitcoin Mining, Moves to Regulate the Sector | Regulation - Bitcoin News - October 6th, 2020
- Why reduced Bitcoin futures volume may signal the start of a new bull trend - Cointelegraph - October 2nd, 2020
- Spike in new participants buying Bitcoin is obviously bullish Analyst - Cointelegraph - October 2nd, 2020
- Romania set to auction Bitcoin and Ether confiscated in criminal case - Cointelegraph - October 2nd, 2020
- Bitcoin Balances on Exchanges at 2-Year Low and That May Be a Bullish Sign - CoinDesk - CoinDesk - October 2nd, 2020
- Venezuela To Start Using Cryptocurrency in Global Trade in Efforts To Fend off US Sanctions | Emerging Markets - Bitcoin News - October 2nd, 2020
- Bitcoin Posts a 66-Day Consecutive Streak Above the $10K Price Range | Markets and Prices - Bitcoin News - October 2nd, 2020
- Aurus Disrupts the Gold Industry Today Its Ecosystem Lists at a Value of $75m | Sponsored - Bitcoin News - October 2nd, 2020
- Satoshi Nakamoto's Peer-to-Peer vision for Bitcoin - Korea IT Times - October 2nd, 2020
- Crypto Bets on the US Election Show Joe Biden Winning the Presidency by 60% - Bitcoin News - October 2nd, 2020
- At $10,600, Bitcoin price is on track for its second-best quarter ever - Cointelegraph - September 30th, 2020
- Devere Group CEO Predicts Bitcoin Can Replace Gold as Top Safe-Haven Within a Generation | Finance - Bitcoin News - September 30th, 2020
- Ex-CEO of Bitcoin.com, a Leading Proponent of Bitcoin Cash (BCH), Joins Nodle's Board to Help Develop the Nodle Cash Ecosystem - GlobeNewswire - September 30th, 2020
- Trump, tax and hacks: 5 things shaping Bitcoin price action this week - Cointelegraph - September 30th, 2020
- One of Hal Finney's lost contributions to Bitcoin Core to be 'resurrected' - Cointelegraph - September 30th, 2020
- French police arrest terror financing ring that used Bitcoin coupons - Cointelegraph - September 30th, 2020