Bitcoin topped $ 12,000 to hit its highest price in two months, hinting at the prospect of a new high in 2020.
The largest cryptocurrency changed hands on Wednesday around $ 12,200, with a strike distance from the year-high around $ 12,500. And that was before news even emerged that consumer electronic payments giant PayPal was granted a conditional license from New York State for a cryptocurrency buy and sell partnership.
“Coupled with a seemingly constant stream of reports about traditional funds and companies investing or allocating part of their balance sheet to Bitcoin, we needed to move forward,” Matt Blom, head of sales and trading for the listed digital asset company in stock exchange. Diginex told subscribers in its daily newsletter.
In traditional markets, European stock indexes were lower, US stock futures fluctuated and 10-year treasury yields rose on new speculation that Washington lawmakers may still be orienting themselves towards a recovery plan. Gold rose 0.6% to $ 1,919 an ounce.
While Tether (USDT), with a market cap exceeding $ 16 billion, continues to hold the lion’s share of stablecoins in circulation, two smaller rivals overtake it in the most fashionable crypto market this year, the financials. decentralized (DeFi).
Measured by the total value locked in six of the most popular DeFi protocols – Compound, Maker, Uniswap, Curve, Aave and Balancer – USD coin (USDC) leads among stablecoins tracked by dai (DAI), MakerDAO’s native stablecoin . That’s according to data compiled by Flipside Crypto as of October 19.
USDC and DAI have market caps of $ 2.74 billion and $ 608 million, respectively. Yet unlike centralized exchanges, where the tether is the go-to stablecoin in dollar-based crypto transactions, the USDC and DAI seem to have found their niche as preferred stablecoins in decentralized transactions.
In an interview with CoinDesk, Jeremy Allaire, co-founder of peer-to-peer payments company Circle, attributed USDC’s success in DeFi to his company’s early efforts in building relationships with DeFi communities. . The fact that the two companies that co-founded the USDC governance center consortium, Circle and the crypto exchange Coinbase, are both registered financial entities in the United States, may also have something to do with the recent takeover. of the USDC. According to Allaire, USDC is preferred by institutional investors for being “safe, reliable and regulated”.
Authorities around the world are giving more guidance on how cryptocurrencies should be used and regulated. At the end of September, for example, the US Office of the Comptroller of the Currency (OCC) released its first regulatory guidance for stablecoins, clarifying that domestic banks can provide services to stablecoin issuers in the United States. United.
“Having guidelines creates more certainty, which makes mainstream market players ready and willing to engage in them,” Allaire told CoinDesk.
Read more: Tether Still Dominates Stablecoins, But USDC and Dai Win DeFi
The price of Bitcoin has climbed to two-month highs and options market data shows traders are positioning themselves for a continued rally.
The highest cryptocurrency by market value rose to $ 12,303 early today – the highest level since August 18 – and was last seen near $ 12,250, which is a gain of 2% over the day.
Market sentiment has turned rather bullish, with companies like Square, Microstrategy and Stone Ridge disclosing their bitcoin holdings and boosting the popularity of the digital asset as a store of value.
“The momentum is certainly building up with the support of large companies buying into the market,” Wayne Chen, CEO and Director of Interlapse Technologies, told CoinDesk in a LinkedIn chat.
The move above $ 12,000 revealed the August high of $ 12,476, above which significant resistance is seen directly at $ 13,880 (June 2019 high).
Data from the options market shows that investors expect continued price recovery. “Bitcoin is bursting and the options market is bracing for a bigger rally,” Skew CEO Emmanuel Goh told CoinDesk in a Telegram chat.
The bullish mood is evident from the negative one, three and six month put-call biases, which measure the cost of puts versus calls.
In other words, bullish calls or bets result in higher prices than bearish puts or bets – a sign that investors are positioning themselves for a price rally.
Ether (ETH): Validators of the fall of the Ethereum blockchain test network as more developers say they are ready for the first phase of the 2.0 upgrade.
Compound (COMP): Lender DeFi’s governance token drops below $ 100, a sign the industry may cool down.
B itcoin (BTC): In a case of the new economy, the greatest demand for cryptocurrency is expected to increase as the price rises, while the supply remains fixed, wrote Mike McGlone, analyst at Bloomberg Intelligence:
What is hot
PayPal has granted New York’s first “conditional BitLicense” to offer crypto services. (CoinDesk)
The Bahamas officially launches the central bank’s digital currency ‘sand dollar’, the first of its kind in the world to be fully deployed. (CoinDesk)
BitMEX exchange speeds up mandatory identity verification after accusations of lax anti-money laundering checks. (CoinDesk)
Bitcoin perpetual futures funding rates have remained stable or turned negative as spot prices have crossed $ 12,000, suggesting that futures traders are not as bullish in the latest rally. (CoinDesk)
The United States’ overestimation of the digital dollar robs officials of a “critical ability to quickly and accurately deliver stimulus funds directly to citizens during a recurring pandemic or persistent depression,” the lawyers say. (CoinDesk)
Digital assets could become “the next area of shadow banking”. (Call)
In the third quarter, Binance spot trading hit an all-time high, a sign that retail traders prefer the exchange to its competitors. (The block)
Michael Saylor, CEO of MicroStrategy, says bitcoin market data is “garbage” and liquidity is much more limited than has been reported, in his own experience; he says it’s hard to buy more than $ 35 million worth of bitcoin “without people knowing it.” (CoinDesk)
Mode Global, a fintech company listed on the London Stock Exchange, plans to convert 10% of its cash reserves into bitcoin “to protect investor assets from currency degradation.” (CoinDesk)
Crypto-friendly signature bank raised $ 4 billion in deposits in Q3 2020 (CoinDesk)
Peer-to-peer bitcoin trading in North America now exceeds volumes in 2017 bull run (Arcane Research)
The latest news on economics and traditional finance
As the European Central Bank invades the stimulus zone, Greece and Italy’s 10-year government bond yields are now below 1%, as is Germany. (WSJ)
Commodity traders are increasing bets that the US dollar will weaken against the euro. (WSJ)
China’s initial stock offerings explode as economy recovers, markets soar. (WSJ)
Global trade recovered somewhat in the third quarter, but remains around 4.5% lower than a year earlier, according to a United Nations report. (Reuters)
Japanese stocks are rising following a US stimulus deal struck ahead of the presidential elections. (Reuters)
The US economy has lost 3.9 million jobs since President Donald Trump took office. (Yahoo finance)