Bitcoin Records a Winning Streak, Moving in Opposite Direction of Stocks

Bitcoin made a positive start of the week, but it failed to last just as $11,000 failed to materialize.

The momentum in bitcoin and large caps seems to be fading, with September looking to end the month with over -8% losses.

The market seems to be in for a choppy month as both Bitcoin and Ethereum get subjected to the growing uncertainty over the upcoming elections in the US.

“Leverage and basis trading related flow will likely find it rather tough as an overextension is unlikely and instead it will be volatility traders that are expected to benefit the most over the coming months,” and digital currencies could struggle with direction, said Dennis Vinokourov of Bequant.

US stocks meanwhile jumped after four weeks of decline as the dollar weakened. Bitcoin’s decoupling from traditional assets, a $300 drop overnight, “may have trapped traders in long positions,” noted OKEx.

Banks are leading the S&P 500 Index after the gauge fell to its lowest since July last week. Signs of US politicians moving toward new fiscal stimulus while the Fed continues to provide liquidity has been working in favor of stocks.

“The Fed is making it almost impossible for you to get too bearish,” said John Porter, head of equities at Mellon Investments. “The market is getting more comfortable with the realization that COVID is going to be with us for a while now.”

Market Positioning

In the light of the ongoing boom across the DeFi ecosystem, mid-cap and small-cap coins are expected to decouple from the large-cap ones. But not all tokens are equal, and the market has become sophisticated in picking out the winners.

“Yield/farming craze is something that is expected to continue to attract hot money, and like with any hot money, there is always a risk of an aggressive pull back, as evidenced during the Sushiswap related drama earlier in the month,” Vinokourov said.

While the bullish view on DeFi is yet to falter, bitcoin price has set a record of daily closing above $10,000 for 65 consecutive days.

With this, the previous record set during the last stages of the bull run in Dec. 2017-Jan. 2018 has now been broken. Last time, this winning period led to an all-time high of $20,000 in two weeks, but this time BTC has been quietly holding the fort.

Meanwhile, in the futures market, the total volume remains low at under $10 billion, down from $28 billion earlier this month, while open interest remains under $4 billion since the week starting Sept. 21.

As per CME’s latest data, as of Sept. 22, leveraged funds had their long positions falling by 19% while short positions dropped by 14.2%. Long positions of other reportable accounts also fell but by just 4.4% while shorts by 25.4%, which is likely to be triggered by profit-taking activities.

This means, in the last reporting period, sharp price correction “triggered risk-control actions by institutional investors, and a large number of long positions were closed.”

Bitcoin (BTC) Live Price

1 BTC/USD =12,858.8992 change ~ -1.45

Coin Market Cap

238.21 Billion

24 Hour Volume

31.36 Billion

24 Hour Change

-1.45

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

AnTy
AnTy
AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,511FansLike
2,795FollowersFollow
4,266FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Digital Assets Beat Traditional Assets by a Wide Margin & Ethereum Outperforms Bitcoin

In 2020 to date, Bitcoin has seen a positive performance of 80% and Ethereum 217%. With these gains, digital currencies are leading this year, with...

Filecoin Miners Will Receive 25% Of The FIL Rewards Immediately After A Successful Network Upgrade

Filecoin (FIL) miners set to receive 25% of their rewards instantly for miners that successfully activated the FIP-004 protocol at block number #170,000. Given...

PayPal Exploring Acquiring Crypto Companies, Already in Talks with Bitcoin Custodian BitGo

PayPal is now exploring acquisitions of crypto companies, including bitcoin custodian BitGo, reported Bloomberg. This week, Paypal announcing support, buy, sell, and hold for cryptos...

Bitcoin Is Having A “Sell-Side Liquidity Crisis,” As BTC Buyers Outweigh the Sellers

After an explosive start of the week that took us to a 13-months high of $13,300, Bitcoin is taking a breather just under $13,000. Interestingly,...

Anchorage And Tokensoft Collab to Bring Wrapped Coins to Ethereum; Zcash (ZEC) Is Up First As wZEC

The growing popularity of decentralized finance (DeFi) has attracted many other digital assets to Ethereum, including Bitcoin, in a wrapped layer one solution. The...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today