Bitcoin bounced back from Thursday’s drop at a time when more of the cryptocurrency is locked in DeFi than ever before.
Bitcoin (BTC) trading around $11,511 as of 20:00 UTC (4 p.m. ET). Gaining 2.2% over the previous 24 hours.
Bitcoin’s 24-hour range: $11,231-$11,552
BTC above its 10-day and 50-day moving averages, a bullish signal for market technicians.
recovery after gyrating $450 on Federal Reserve Chair Jerome Powell’s comments Thursday continues a larger bullish cycle started earlier in the summer.
“After its recent fake breakout above the $12,000 resistance level, bitcoin saw a short-term trend reversal in its broader bullish trend started in June,” said Pavageau. “On the long term the Fed’s comments are very positive for bitcoin and the crypto markets as a safe heaven because of their limited supply.”
For 2020, bitcoin is up 60% while gold is up almost 30%. Investors often refer to both as safe haven assets.
On the derivatives side, the market saw lots of expirations Friday, with over $740 million in bitcoin options expired on the Deribit platform alone. The expirations were expected to induce some volatility; instead, bitcoin’s price steadily trended upward during the day.
“There’s still an element of absorbing what has happened recently in the DeFi markets and the situation after Powell’s statement,” said Chris Thomas, head of digital assets for Swissquote Bank, referring to decentralized finance. He was “surprised there wasn’t a more aggressive move in the last few days, but it’s also good to have some calm for a while.”
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