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Bitcoin looks bearish as Ethereum miners reap more revenue than ever.
- Bitcoin (BTC) is trading around $ 11,298 at 8:00 p.m. UTC (4:00 p.m. ET). 3.8% slip over the previous 24 hours.
- Bitcoin’s 24-hour range: $ 11,102 to $ 11,786.
- BTC below its 10 and 50 day moving averages, a bearish signal to market technicians.
Read more: ‘Bitcoin Rich List’ hits record high
The price of Bitcoin fell to $ 11,102 on spot exchanges such as Coinbase Tuesday, wiping out long derivatives traders on BitMEX. In just an hour, up to $ 5.6 million in leveraged positions were automatically liquidated, the crypto analogous to a margin call.
Daniel Ladinsky, a trader at quantitative trading firm Efficient Frontier, worries that if the price stays below $ 12,000 for one BTC for too long, it could signal a larger downtrend. “BTC has been hovering below $ 12,000 for quite some time, which is a critical area,” Ladinsky told CoinDesk.
Read more: Istanbul or “Coinstantinople”? Inside the Bitcoin Bull Market in Turkey
Michael Gord, CEO of cryptocurrency brokerage firm Global Digital Assets, sees Tuesday’s price drop as a temporary profit taking by some investors. “Institutional traders take profits all the way to cover their risk,” he said. “We are now seeing more and more institutional traders taking a portion of these profits and reallocating them to ‘riskier’ low to mid cap altcoins.”
An interesting development: Bitcoin locked in decentralized finance, or DeFi, is down a bit after already doubling in August, according to data aggregator DeFi Pulse.
Ladinsky of Efficient Frontier says traders continue to see more attractive profit opportunities in DeFi, which could help explain the decline. “Recently the market has remained calm for BTC and most of the attention and hype is on the DeFi front, where coins are climbing very hard,” he said.
Read more: Aave Second DeFi project to overtake MakerDAO for most crypto deposits
Difficulty extracting aether at 2020 high
The second largest cryptocurrency by market cap, Ether (ETH), was down on Tuesday, trading around $ 379 and slipping 5.9% in 24 hours at 8:00 p.m. UTC (4:00 p.m. ET).
Read more: Ether Price Fluctuations Make Bitcoin Tame As DeFi Speculation Spreads
Ethereum mining difficulty peaked in 2020, at 2,820 terahashes, its highest level since December 13, 2019.
The amount of gas, or the fees needed to complete a transaction or execute a contract on the Ethereum blockchain, is at an all time high, meaning the resources used per block are increasing. This means more income for miners from fees and, consequently, more machines running, which increases operating difficulties.
Ecosystem smart contract developers like Jun Dam, who is working on a DeFi project based on the competing EOS platform, tell CoinDesk that Ethereum’s fee situation can help miners, but it doesn’t benefit. to no one else. “ETH gas charges are not user friendly or developer friendly,” Dam said.
Read more: $ 1 billion Ethereum tokens vulnerable to ‘false deposit attack’
Other markets
Digital assets on CoinDesk 20 are mostly in Red Tuesday. One notable winner at 8:00 p.m. UTC (4:00 p.m. ET):
Read more: Bitcoin Miner Overestimated Industry Vet’s Involvement In $ 50 Million Series A Pitch
Notable losers at 8 p.m. UTC (4 p.m. ET):
Read more: Hacker Stole 1000 Traders’ Data From Crypto Tax Reporting Service
Read more: ConsenSys acquires the Quorum blockchain from JPMorgan
- Oil is up 2.2%. Price per barrel of West Texas Intermediate crude: $ 43.35.
- Gold was flat, in the red 0.05% and at $ 1,927 at time of publication.
Read more: Crypto Derivatives Exchange BitMEX To Block Ontario Traders
- US Treasuries all climbed Tuesday. Yields, which move in the opposite direction to price, increased the most over the 10-year, in the green of 3.4%.
Read more: Powell’s upcoming inflation speech could weigh on the dollar and boost Bitcoin
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