Bitcoin was able to hit $10,800 Tuesday before falling on U.S. Pres. Donald TrumpÃ¢ÂÂs stimulus tweet. Meanwhile, the DeFi ecosystemÃ¢ÂÂs most popular wallet hit 1 million users.
- Bitcoin (BTC) trading around $10,555 as of 20:00 UTC (4 p.m. ET). Slipping 1.6% over the previous 24 hours.
- BitcoinÃ¢ÂÂs 24-hour range: $10,528-$10,800
- BTC below its 10-day and 50-day moving averages, a bearish signal for market technicians.
BitcoinÃ¢ÂÂs price was able to climb to $10,800 on spot exchanges such as Coinbase Tuesday before falling to as low as $10,528 immediately after President Trump tweeted his rejection of opposition lawmakersÃ¢ÂÂ most recent economic stimulus proposal.ÃÂ
Ã¢ÂÂOne thing that is still hanging over this market is the stimulus,Ã¢ÂÂ said Andrew Tu, an executive at quant trading firm Efficient Frontier. Ã¢ÂÂIt may take until after the elections for them to reach an agreement, which would be really bad for a lot of Americans relying on government aid.Ã¢ÂÂ
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Katie Stockton, an analyst at Fairlead Strategies, says bitcoin has been above the key $10,000 price point for some time, which she considers bullish. Ã¢ÂÂBitcoin has been consolidating within its uptrend since discovering support near $10,000 a month ago,Ã¢ÂÂ Stockton said. The last time bitcoin traded below $10,000 was on Sept. 9.
Daniel Koehler, liquidity manager at cryptocurrency exchange OKCoin, says the aftermath of the BitMEX news still has him optimistic.ÃÂ
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Ã¢ÂÂItÃ¢ÂÂs bullish to see that bitcoin trading infrastructure is so strong given that the former largestÃÂ bitcoin derivatives trading platform can lose 25% of [its] BTC open interest deposits overnight and the markets just shrug it off.Ã¢ÂÂ Koehler also noted that open interest in the bitcoin futures market overall is ticking up, hitting $3.8 billion on Monday.
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One of the reasons for resilience may be bitcoinÃ¢ÂÂs potential store-of-value properties, says Henrik Kugelberg, an over-the-counter trader based in Sweden, who is bullish bitcoin but bearish almost everything else. Ã¢ÂÂTo me thereÃ¢ÂÂs no doubt we will see a housing crash, a stock crash and quite possibly tough deflation in the near future,Ã¢ÂÂ he said.
To accomplish this, Kugelberg says U.S. debt, which is already over 100% gross domestic product, will have to increase in order to stave off a traditional market crash. Ã¢ÂÂThose things will drive the need to increase the debt at the same pace for another year or maybe more,Ã¢ÂÂ Kugelberg added. Ã¢ÂÂTo me it seems like a point where turning to bitcoin is a good idea.Ã¢ÂÂ
MetaMask hits 1 million users
Ether (ETH), the second-largest cryptocurrency by market capitalization, was down Tuesday, trading around $341 and slipping 3% in 24 hours as of 20:00 UTC (4:00 p.m. ET).ÃÂ
The MetaMask wallet, a browser extension that allows users to interact with the Ethereum network and its multitude of smart contract-based decentralized finance, or DeFi, applications, has hit 1 million users. ItÃ¢ÂÂs a fourfold increase for the wallet since 2019, with the United States, India, Nigeria and the Philippines as the top countries with highest MetaMask usage, according to its software developer, Consensys.
Chasing juicy returns in the DeFi space, which can often provide double- or triple-digit returns for lending crypto, is one of the reasons for MetaMaskÃ¢ÂÂs growth, said John Willock, CEO of Tritium Digital Assets, a crypto liquidity provider. Ã¢ÂÂI think we can all recognize that a lot of the adoption of MetaMask is through the recent DeFi craze and interest in short-term returns that have been perceived to be out there to chase.Ã¢ÂÂÃÂ ÃÂ
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However, that speculation is bringing real adoption, Willock added. Ã¢ÂÂI look at the MetaMask numbers as the same sort of early adoption indicator the uptake of Netscape browser use was in the 1990s. It is exciting.Ã¢ÂÂÃÂ ÃÂ
Digital assets on the CoinDesk 20 are mostly lower Tuesday. Notable winners as of 20:00 UTC (4:00 p.m. ET):
Notable losers as of 20:00 UTC (4:00 p.m. ET):
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- Oil was up 2%. Price per barrel of West Texas Intermediate crude: $40.17.
- Gold was in the red 1.3% and at $1,888 as of press time.
- U.S. Treasury bond yields fell Tuesday. Yields, which move in the opposite direction as price, were down most on the 10-year, dipping to 0.747 and in the red 4.8%.
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