Connect with us

Coindesk

Market Wrap: Bitcoin Briefly Slides Below $18K as ETH Is More Volatile Than BTC in 2020

Bitcoin slipped below $18,000 again Thursday as ether’s volatility in 2020 shows a different dynamic than BTC.

Published

on

Dec 10, 2020 at 9:25 p.m. UTCUpdated Dec 10, 2020 at 10:26 p.m. UTC

CoinDesk 20 Bitcoin Price Index

Market Wrap: Bitcoin Briefly Slides Below $18K as ETH Is More Volatile Than BTC in 2020

Weak volumes and rotations into other cryptocurrencies are likely impeding bitcoin’s price movement from going higher. Meanwhile, ether has been more volatile than bitcoin in 2020 and could remain that way.

  • Bitcoin (BTC) trading around $18,349 as of 21:00 UTC (4 p.m. ET). Gaining 0.14% over the previous 24 hours.
  • Bitcoin’s 24-hour range: $17,904-$18,652 (CoinDesk 20)
  • BTC slightly above its 10-day and 50-day moving averages, a bullish trending signal for market technicians.
btcdec10

Bitcoin trading on Bitstamp since Dec. 7.

Source: TradingView

The price of bitcoin once again fell below $18,000 Thursday, going as low as $17,904 according to the CoinDesk 20. The price was able to reverse course, with higher volume pushing it back up to $18,349 as of press time.

Constantin Kogan, partner at crypto investment firm Wave Financial, pegs $17,900 as a “support” level whereby if traders don’t start scooping up bitcoin to push price back up, there may be a larger fall. “The trend is weakening,” Kogan told CoinDesk. “If we dip further then I will consider that as a start of a downtrend.”

btconemonthdec10

Bitcoin’s historical price over the past month.

Source: CoinDesk 20

Chris Thomas, head of digital assets for Swissquote Bank, has noticed a lull in the market this week but sees it as a buying opportunity for those who have a longer time frame. “I’m not scared by this. It’s just providing a better entry point for those who want to invest mid-long term,” said Thomas to CoinDesk. “I haven’t seen much [over-the-counter] or larger activity this week, though.”

At a combined $1.1 billion as of Wednesday’s close, average weekday spot volume on major CoinDesk 20 exchanges is lighter this week than last week’s $1.7 billion. As of press time, combined volumes were at $873 million Thursday.

btcvolonemonthdec10

Bitcoin volumes on major spot exchanges.

Source: Shuai Hao/CoinDesk Research

Henrik Kugelberg, an over-the-counter (OTC) crypto trader, is not dismayed by the doldrums in the crypto market this week. “It’s a moderate dip on the way up,” Kugelberg told CoinDesk. “Nothing to see here.”

Rotation into alternative cryptocurrencies has been a popular theme in the crypto market as of late, and Swissquote’s Thomas pointed to XRP as one example of this dynamic. “Our data shows that in the last four weeks the volume of XRP has increased substantially at the detriment to ether and a little bit bitcoin,” Thomas said.

Indeed, XRP, the third-largest cryptocurrency by market capitalization, has seen a bump in volume over the past month, according to data from aggregator CoinGecko.

xrpthreemonthsdec10

XRP price and volume over the past three months.

Source: CoinGecko

An airdrop in collaboration with Coinbase is likely accelerating a hype cycle on XRP, leading to volume jumping along with price, noted Thomas.“I think XRP volumes continue to outperform BTC and ETH ahead of tomorrow night’s flare token snapshot,“ said Thomas.

Ether more volatile than bitcoin this year

Ether, the second-largest cryptocurrency by market capitalization, was down Thursday, trading around $566 and slipping 1.1% in 24 hours as of 21:00 UTC (4:00 p.m. ET).

The 30-day volatility for ether for the most part has been higher than for bitcoin in 2020, according to data collected by CoinDesk Research.

btcvsethvolatility-2

Bitcoin (black) versus ether (blue) 30-day volatility in 2020.

Source: Shuai Hao/CoinDesk Research

Vishal Shah, a crypto options trader and founder of derivatives venue Alpha5, says Ethereum’s ambitious “2.0” upgrade provides totally different fundamentals for ETH compared to BTC, giving it wilder gyrations.

“ETH should have a higher volatility given that it’s a less established protocol than bitcoin; it is materially smaller in market cap and has more uncertainties on the immediate horizon,” Shah told CoinDesk. “The largest uncertainty would be the settling of [the Beacon Chain] and the transition to 2.0, it’s all a bit uncharted.“

Other markets

Digital assets on the CoinDesk 20 are mixed Thursday, mostly red. One winner as of 21:00 UTC (4:00 p.m. ET):

Notable losers:

Equities:

Commodities:

  • Oil was up 2.5%. Price per barrel of West Texas Intermediate crude: $46.86.
  • Gold was in the red 0.14% and at $1,836 as of press time.

Treasurys:

  • The 10-year U.S. Treasury bond yield fell Thursday dipping to 0.915 and in the red 2.1%.
https://www.coindesk.com/coindesk20

The CoinDesk 20: The Assets That Matter Most to the Market

Source: https://www.coindesk.com/coindesk20

Source: https://www.coindesk.com/market-wrap-bitcoin-slides-eth-volatile

market-wrap:-bitcoin-briefly-slides-below-$18k-as-eth-is-more-volatile-than-btc-in-2020

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Coindesk

World’s Oldest Central Bank Extends Digital Currency Test Till 2022

Riksbank said it would continue developing a technical solution for a central bank-issued e-krona under its pilot project.

Published

on

Sweden’s Riksbank said it would continue work with Accenture on a potential e-krona digital currency until next year.

(Mario Ortiz/Shutterstock)

Feb 17, 2021 at 10:12 a.m. UTC

World’s Oldest Central Bank Extends Digital Currency Test Till 2022

The world’s oldest central bank, Sweden’s Riksbank, is to extend its pilot project for a potential central bank digital currency (CBDC) for another 12 months.

According to a press release on Friday, the project, which is being carried out with assistance from professional services firm Accenture, will run until February 2022.

The Riksbank said it would continue developing a technical solution for a central bank-issued e-krona “as a complement to cash,” with the primary objective being for the bank to increase its knowledge around the technology.

For 2021, the institution will continue developing its potential digital currency offering with a focus on performance and scalability. Testing offline functions and bringing external participants into the test environment is also on the table.

The project has raised some concerns from Sweden’s commercial banking sector over the viability of a sovereign CBDC and how that would impact the entire banking system.

There is no final decision over the issuance of the e-krona despite strong lobbying from the central bank to government last year. But with traditional cash seeing falling use, even more so during the coronavirus pandemic, Sweden has been mulling a switch to the CBDC.

However, questions still remain over the digital currency’s ultimate design and underlying technology, according to Friday’s release.

Source: https://www.coindesk.com/sweden-central-bank-digital-krona-extension

world's-oldest-central-bank-extends-digital-currency-test-till-2022

Continue Reading

Coindesk

Bitcoin Mining: Wasted Energy or a Better, Greener System?

Harry Sudock, VP of strategy at GRIID Infrastructure on the modern energy landscape, how far we’ve come and where bitcoin mining fits.

Published

on

Is it wasteful to use electricity mining bitcoin? As the Biden Administration settles into power with an ambitious agenda around clean energy, notably promising to eliminate carbon emissions from the US power generation sector by 2035, the question of bitcoin mining and it’s ever-growing use of energy bubbles up once more.

In this episode of ‘On Purpose, With Tyrone Ross,’ Harry Sudock, VP of strategy at GRIID Infrastructure joins the show to discuss the modern energy landscape, how far we’ve come and where bitcoin mining can fit into a sustainable energy system.

The greatest number of people living in poverty are children, we need to change that. If you can, get involved and give back to NoKidHungry.org. Love and Light. I appreciate you!

Other Episodes

Source: https://www.coindesk.com/podcasts/on-purpose-with-tyrone-ross/bitcoin-mining-harry-sudock

bitcoin-mining:-wasted-energy-or-a-better,-greener-system?

Continue Reading

Coindesk

Deutsche Bank Quietly Plans to Offer Crypto Custody, Prime Brokerage- CoinDesk

The bank’s game plan was hidden in plain sight in a widely overlooked report by the World Economic Forum.

Published

on

The bank’s game plan was hidden in plain sight in a widely overlooked report by the World Economic Forum.

Deutsche Bank headquarters in Frankfurt, Germany (Thomas Lohnes/Getty Images)

Feb 13, 2021 at 2:10 a.m. UTCUpdated Feb 13, 2021 at 2:18 a.m. UTC

Deutsche Bank Quietly Plans to Offer Crypto Custody, Prime Brokerage

Deutsche Bank has joined the growing ranks of large financial institutions exploring cryptocurrency custody, with aspirations to offer high-touch services to hedge funds that invest in the asset class.

The Deutsche Bank Digital Asset Custody prototype aims to develop “a fully integrated custody platform for institutional clients and their digital assets providing seamless connectivity to the broader cryptocurrency ecosystem,” according to a little-noticed report by the World Economic Forum, host of the annual gathering of muckety-mucks in Davos, Switzerland.

In a passage buried on page 23 of the December 2020 report, Germany’s largest bank says it plans to create a trading and token issuance platform, bridging digital assets with traditional banking services, and managing the array of digital assets and fiat holdings in one easy-to-use platform.

Big banks are now announcing plans to enter crypto custody on an almost daily basis, with Bank of New York Mellon, the world’s largest custodian bank, joining the party earlier this week.

U.S. banks were given some regulatory clarity thanks to last year’s interpretation letters from the Office of the Comptroller of the Currency. In Germany, firms are queuing up to get their hands on special crypto custody licenses from the country’s regulator, BaFIN.

Deutsche, the world’s 21st largest bank, said it aims to “ensure the safety and accessibility of assets for clients by offering an institutional-grade hot/cold storage solution with insurance-grade protection.” No specific cryptocurrencies or tokens are mentioned.

The digital asset custody platform would be launched in stages. It would eventually provide clients with the ability to buy and sell digital assets via a partnership with prime brokers (which act sort of like concierges for hedge funds), issuers and vetted exchanges.

The bank says it would also provide “value-added services such as taxation, valuation services and fund administration, lending, staking and voting, and provide an open-banking platform to allow onboarding of third-party providers.”

The service would be aimed at asset managers, wealth managers, family offices, corporates and digital funds, the bank said.

In terms of a business model, the bank would start out collecting custody fees, it said, later charging fees for tokenization and trading.

Deutsche said it has completed a proof of concept and is aiming for a minimum viable product in 2021, while exploring global client interest for a pilot initiative.

The bank’s press office could not be reached for comment Friday evening. A spokesperson had declined to comment on potential plans for a digital asset custody business when contacted last week by CoinDesk.

Source: https://www.coindesk.com/deutsche-bank-crypto-custody-prime-brokerage

deutsche-bank-quietly-plans-to-offer-crypto-custody,-prime-brokerage--coindesk

Continue Reading

Title

Techcrunch3 days ago

South Korean antitrust regulator fines Google $177M for abusing market dominance – TechCrunch

The Korea Fair Trade Commission (KFTC) said on Tuesday it fined Google $177 million for abusing its market dominance in...

Cointelegraph6 days ago

El Salvador’s Bitcoin detractors: Opposition groups gather as crypto law rolls out

While President Bukele enjoys widespread popularity, his law that makes Bitcoin legal tender does not.

Ventureburn7 days ago

Startup partners with Telkom to launch translation platform for SA languages

Telkom has partnered with SA startup Enlabeler to launch an AI platform that translates speech into text and provides transcription...

Entrepreneur2 weeks ago

Why You Should Make Twitter Spaces Part of Your Business Strategy

Twitter's latest feature can help businesses grow their presence on the platform.

Bioengineer2 weeks ago

What factors put Philippine birds at risk of extinction?

Credit: Ça?an ?ekercio?lu The lush forests and more than 7,000 islands of the Philippines hold a rich diversity of life,

Reuters3 weeks ago

Chinese social media platforms to “rectify” financial self-media accounts

China's top social media platforms, Wechat, Douyin, Sina Weibo and Kuaishou, said on Saturday they would begin to rectify irregular...

Ventureburn3 weeks ago

South African startups helping to solve the global challenges

A new generation of entrepreneurs are not only incubating solid startups but are contributing to help solve some of the...

Techcrunch3 weeks ago

The SEC and the DOJ just charged this startup founder with fraud, saying he lied to Tiger and others – TechCrunch

Today, both the U.S. Department of Justice and the Securities and Exchange Commission charged Manish Lachwani, cofounder of a mobile...

Techcrunch4 weeks ago

Blockchain startup XREX gets $17M to make cross-border trade faster – TechCrunch

A substantial portion of the world’s trade is done in United States dollars, creating problems for businesses in countries with a...

ZDNET4 weeks ago

National Australia Bank keeping staff connected with Google Pixel rollout

More than 2,000 Google Pixel devices were issued to NAB's customer contact teams to enable them to support customers remotely.

Review

    Select language

    Trending