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Bitcoin bounces off a resistance of $ 50,000

Cryptocurrencies end the week on a strong note as Bitcoin broke above $ 48,000 for the first time since May. The world’s largest cryptocurrency is up about 4% in the past 24 hours and could face resistance near $ 50,000 to $ 55,000 by the weekend.

On Thursday, Coinbase announced that it would buy more than $ 500 million worth of cryptocurrencies to replenish its holdings. Crypto exchange CEO Brian Armstrong also tweeted that Coinbase will “invest 10% of all future profits in crypto.”

Coinbase’s announcement encouraged Bitcoin buyers to return to the $ 45,000 support level. Bitcoin’s price jump also coincided with the stabilization of stock markets after a pullback earlier this week.

Current prices

Related: AdvisorShares files for Bitcoin Futures ETF


Traditional markets:

Several analysts noted that extremely overbought conditions have eased since April, helping the crypto rally.

“Right now, Bitcoin and other cryptos enjoy technical support (as they have been slightly oversold),” wrote Santiago Espinosa, strategist at MRB Partners, in an email to CoinDesk.

Related: Bitcoin cracks $ 48,000 for the first time since May

“At this point in time, some cryptos can continue to do well if policymakers neglect inflationary pressures and regulatory issues don’t become a mainstream issue,” wrote Espinosa.

Bitcoin Correlations

Bitcoin’s negative correlation with gold has intensified in recent months as inflation expectations weakened. Gold is down about 6% year-to-date, compared with Bitcoin gaining 65% over the same period.

The correlation between Bitcoin and iShares’ long-term Treasury Bond Exchange Traded Fund (TLT) turned positive for a short time in July as the crypto sell-off stabilized. Recently, Bitcoin’s recovery rally coincided with a surge in 10-year government bond yields, which stalled near the 1.40% resistance level.

The story goes on

Growing futures volume

The growth in Bitcoin futures volume compared to spot volume could reflect greater involvement from experienced traders. “In the past year, futures and perpetual swaps have become the most popular financial instruments in the crypto space,” tweeted Delphi Digital. Futures and perpetual futures make up over 60% of total daily bitcoin volume.

Perpetuals are gaining ground compared to spot market activity and are quickly becoming the main source of pricing, according to Delphi.

Bitcoin Perpetual Swaps are a type of derivative in cryptocurrency markets, much like futures contracts in traditional markets.

Delphi also noticed a similar trend in Ether, although spot markets still play a bigger role in this crypto than futures markets.

Miner positioning

Bitcoin miners’ positioning index (MPI) has flattened in the past two weeks. The MPI tracks whether miners move their BTC positions higher or lower.

The sideways movement of the MPI suggests that “miners’ profit-taking is slowing significantly along with the stagnation in price increases,” wrote CryptoQuant in a blog post on Friday.

CryptoQuant expects a downward price adjustment at BTC before a decisive increase occurs above the price level of USD 50,000. A price breakout could encourage miners to build positions.

Altcoin summary

  • Cardano hits all-time high: Cardano (ADA), the native cryptocurrency that powers Cardano’s public blockchain, has hit a new all-time high, outperforming Binance’s native token in total market capitalization, reports CoinDesk’s Sebastian Sinclair. It appears that Alonzo’s upgrade has had a significant impact on investor sentiment. The upgrade is designed to introduce smart contract functionality and fix what critics have described as one of the network’s most glaring flaws.

  • Solana’s Luna Yield goes dark: The decentralized financial protocol Luna Yield has gone offline. According to SolPad, an Initial Digital Offering (IDO) platform for the Solana blockchain, Luna’s website and all of her social media accounts have been removed. Some attribute the offline move to a rug pull. A rug pull occurs when the creators of a project withdraw with the funds of the investors. Although there is no official confirmation, the move would be the first carpet move of its kind on Solana. An anonymous source told CoinDesk that over $ 6.7 million in assets were seized. The amount was verified by CoinDesk using the SOL Scanblock Explorer.

  • OKEx sets up a $ 10 million fund for GameFi projects: The OKEx crypto exchange announced it would set up a $ 10 million fund to help develop GameFi, or play-to-earn, projects. The money will come from the exchange’s $ 100 million OKEx BlockDream Ventures fund, which invests in blockchain projects, the company said. GameFi introduces financial mechanisms into video games that allow users to make money playing games.

Relevant news:

Other markets

All digital assets on CoinDesk 20 were higher on Friday.

Notable Winners from 9:00 PM UTC (4:00 PM ET):

Polygon (MATIC) + 7.63%

the graphic (GRT) + 7.42%

Algorithm (SOMETHING) + 7.27%

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