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 to tumble further: oddsmakers bet on drop to $10K - Yahoo Finance - June 12th, 2021
- Bitcoin Is Actually Traceable, Pipeline Investigation Shows - The New York Times - June 12th, 2021
- Jim Cramer: Be patient with bitcoin, approach the S&P with caution - CNBC - June 12th, 2021
- As bitcoin falls to $32K, two strategists discuss whether it's a buy now - CNBC - June 12th, 2021
- Bitcoin ($BTC USD) Cryptocurrency Price Outlook: Futures a Warning to JPMorgan - Bloomberg - June 12th, 2021
- Hacking bitcoin wallets with quantum computers could happen but cryptographers are racing to build a workaround - CNBC - June 12th, 2021
- Bitcoin bounces from 3-week lows why 'bad narratives' have one trader staying neutral - CNBC - June 12th, 2021
- Cryptocurrency News Today June 12: Bitcoin, Dogecoin, Shiba Inu and other top coins prices and all latest u... - Zee Business - June 12th, 2021
- El Salvador looks to become the first country to adopt ... - June 8th, 2021
- Bitcoin extends losses, falling below $32,000 after U.S. seizes most of Colonial ransom - CNBC - June 8th, 2021
- Bitcoin believers have nothing to worry about; their crypto is here to stay - Business Standard - June 8th, 2021
- Bitcoin skids to two-week low, but technical analyst says the slump is not a 'decisive breakdown' she's watching the next two closes - MarketWatch - June 8th, 2021
- Thousands of bitcoin believers descended on Miami to party and preach the gospel of 'HODL' - CNBC - June 8th, 2021
- Bitcoin, Ethereum and XRP Plunge In Steepest Drop Since May - TheStreet - June 8th, 2021
- If you're thinking about investing in bitcoin, consider these risks first If you've gotten - CNBC - June 8th, 2021
- China Reconsiders Its Central Role in Bitcoin Mining - The Wall Street Journal - June 8th, 2021
- El Salvador may be the first country to accept Bitcoin as legal tender - Yahoo Tech - June 8th, 2021
- Bitcoin of America is Hoping to Inspire Women to Join the Crypto Industry by Sending its Powerful Female Team to Bitcoin 2021 - PRNewswire - June 8th, 2021
- Take that, Miami: Hong Kong hosts its own Bitcoin meetup - Forkast News - June 8th, 2021
- Bitcoin is greener than many --- including Elon Musk --- think it is - MarketWatch - June 2nd, 2021
- Bitcoin hits $38K as BTC price breaks above 'line in the sand' resistance - Cointelegraph - June 2nd, 2021
- Bitcoin Price Volatility Reached Its Highest In A Year During May - Forbes - June 2nd, 2021
- Bitcoin is headed toward its worst month since 2011; 'Rich Dad, Poor Dad' author says that's 'great news' - MarketWatch - June 2nd, 2021
- Wall Street struggles to sell Washington on Bitcoin for the masses - POLITICO - June 2nd, 2021
- Bitcoin contends with biggest monthly drop on record - Fox Business - June 2nd, 2021
- Few, if any, financial advisers expected to recommend bitcoin and dogecoin to clients --- here's how many now suggest buying crypto - MarketWatch - June 2nd, 2021
- Want to Stop Ransomware Attacks? Ban Bitcoin and Other Cryptocurrencies. - The New Republic - June 2nd, 2021
- Cryptocurrency expert says Bitcoin, Stablecoin payments will be accepted by more businesses - Fox Business - June 2nd, 2021
- Crypto market comeback? Ask experts anything about dogecoin, bitcoin, Ethereum latest and more - The Independent - June 2nd, 2021
- Bitcoin slumps 7% as investors brace for another bouncy weekend - Aljazeera.com - May 30th, 2021
- In the Battle over Bitcoin, Its Bull vs. Bear in Elon Musks Brain - Barron's - May 30th, 2021
- Analyst says reclaiming $37,500 is Bitcoins crucial line in the sand - Cointelegraph - May 30th, 2021
- When Is Bitcoin's Reign Going to End? - Analytics Insight - May 30th, 2021
- Top cryptocurrency prices today: Bitcoin, ethereum, dogecoin and more - Moneycontrol.com - May 30th, 2021
- Billionaire Ray Dalio says he owns bitcoin, and its 'greatest risk is its success' - CNBC - May 30th, 2021
- Bitcoin hovers around $40,000 after a wild week of trading - CNBC - May 28th, 2021
- Bitcoin price slides along with other cryptocurrencies - Fox Business - May 28th, 2021
- Bitcoin Crashes Toward $30,000 As Ethereum, Binances BNB, Cardano, Ripples XRP And Dogecoin Lead Another Crypto Price Plummet - Forbes - May 28th, 2021
- Why is the price of bitcoin and other cryptocurrencies falling? - CBS News - May 28th, 2021
- Bitcoin Depot Among Industry Leaders to Participate at Bitcoin 2021 Conference - PRNewswire - May 28th, 2021
- Bitcoin slumps 8% as it heads for bruising monthly drop - Reuters - May 28th, 2021
- How Far Bitcoin Could Fall If the Selloff Worsens - Barron's - May 28th, 2021
- Bitfarms Mines 1000th Bitcoin with Hydroelectricity This Year - GlobeNewswire - May 28th, 2021
- Bitcoin and bonds wont cut it. Buy these 6 types of assets for protection in a bear market, says strategist. - MarketWatch - May 28th, 2021
- Bitcoins Reliance on Stablecoins Harks Back to the Wild West of Finance - The Wall Street Journal - May 28th, 2021
- The Cryptocurrencies That Outperformed During Bitcoin's Crash - Barron's - May 28th, 2021
- Bitcoin investors are flying too close to the sun: analyst - Yahoo Finance - May 28th, 2021
- Bitcoin Investing vs. Invisible Hardware of the Nanocosm - Yahoo Finance - May 28th, 2021
- Bitcoin: I'll either be rich, or wrong - Financial Times - May 28th, 2021
- Crypto News: Bitcoin, Other Cryptocurrencies Suffer Another Weekend Rout - Barron's - May 24th, 2021
- Bitcoin is up, then down. But exactly how does it work? - USA TODAY - May 24th, 2021
- MORNING BID-Bitcoin and Belarus in the headlines - Reuters - May 24th, 2021
- Recovery rally takes bitcoin back above $40k; Treasury proposal weighs on gains - Reuters - May 24th, 2021
- Bitcoin prices tumble 50% from peak and Mark Cuban calls the crypto crash the 'great unwind' - MarketWatch - May 24th, 2021
- Bitcoin has just crashed and we may see another rally. But is this the time to buy? - ABC News - May 24th, 2021
- Bitcoin Vs. Gold: Surviving Inflation - Forbes - May 24th, 2021
- Bitcoin recovers after plunge that shaved $1 trillion off crypto market: CNBC After Hours - CNBC - May 24th, 2021
- Crypto strategist sees pullback in bitcoin and ether as a healthy sign after massive rallies - CNBC - May 24th, 2021
- Why is crypto crashing? Will bitcoin prices ever recover? Here's what traders and investors say - MarketWatch - May 24th, 2021
- 3 Growth Stocks to Buy That Could Be Bigger Winners Than Bitcoin and Dogecoin - Motley Fool - May 24th, 2021
- Bitcoin flash crash amplified by leverage and systemic issues - Financial Times - May 24th, 2021
- Some old investing lessons from the Bitcoin crash - Mint - May 24th, 2021
- If You Invested $1,000 in Bitcoin 10 Years Ago, Here's How Much You'd Have Today - The Motley Fool - May 9th, 2021
- Elizabeth Warren: 'There's a real issue' with environmental impact of bitcoin - Yahoo Finance - May 9th, 2021
- SEC Chairman Gary Gensler says more investor protections are needed for bitcoin and crypto markets - CNBC - May 9th, 2021
- Bitcoin (BTC USD) Cryptocurrency Price: Bank of England Warns of Full Losses - Bloomberg - May 9th, 2021
- Marathon Miners Have Started Censoring Bitcoin Transactions; Here's What That Means - CoinDesk - May 9th, 2021
- Downtown Josh Brown on bitcoin and wealth management - The Block Crypto - May 9th, 2021
- FBI: Knoxville man paid hitman in Bitcoin to kill his wife - WATE 6 On Your Side - May 9th, 2021
- Metromile Will Embrace Bitcoin For Insurance Premium And Claim Payments - Forbes - May 9th, 2021
- FBI: Tennessee man paid hitman in Bitcoin to kill his wife - wreg.com - May 9th, 2021
- If You Bought $1,000 Worth of Bitcoin a Year Ago, Here's How Much You'd Have Today - The Motley Fool - May 9th, 2021
- Bitcoins upcoming Taproot upgrade and why it matters for the network - Cointelegraph - May 9th, 2021
- Bitcoin ($BTC) or Ether ($ETH): Which Crypto Coin Is a Better Investment? - Bloomberg - May 6th, 2021
- Forget Bitcoin: Here are The Crypto Assets To Follow - Yahoo Finance - May 6th, 2021
- Mark Cuban: The 3 ways Ethereum 'dwarfs' bitcoin - CNBC - May 6th, 2021
- Square gets a bitcoin boost with revenue up 266% - CNBC - May 6th, 2021
- Crypto Expert Predicts That Bitcoin Will Eventually Hit $1 Million USD per Coin - HYPEBEAST - May 6th, 2021
- Bitcoin price live: Experts predict latest ethereum and dogecoin records may be early stages of rally - Yahoo Finance Australia - May 6th, 2021
- DeFi More Disruptive to Banks Than Bitcoin, Says ING - CoinDesk - CoinDesk - May 6th, 2021