This week the bitcoin and cryptocurrency markets rebounded like the lion did on Monday, only to end the week more like a pregnancy. Over the weekend, let’s take a look at the key developments that shaped the past week and what you can expect for Bitcoin over the weekend.

Bitcoin has not yet overcome the $ 12,000 barrier
Bitcoin (BTC) price tested its year-to-date highs, briefly rising above $ 12,000 to retreat to the $ 11,000 area where it was largely stuck for the past two weeks.

Ether (ETH) and gas fees also rose largely due to DeFi’s growth and speculation. But the big story was a heretofore unknown symbol launched astronomically higher to return to Earth at roughly the same speed.

Exceeding the $ 12,000 mark has always been seen as key to retesting Bitcoin at an all-time high. Some analysts believe that overcoming the challenges of resistance levels between $ 12,000 and $ 14,000 will be followed by a void all the way to record levels.

Just before the week, Bitcoin hit a major psychological mark of $ 12,000. Despite the growing interest, a lack of follow-up has pushed Bitcoins down. In return, the market had to try again, which was partly supported by stable, positive permanent financing rates.

Gas prices have risen dramatically
Aside from the technical rejection of the price, it should be noted that Ethereum’s transaction fees gradually increased. In fact, the surge soared the next day, with transaction fees hitting $ 6.04 on Wednesday night, their highest level since 2015.

Various network upgrades are designed to solve this problem, or at least reduce stress immediately, but it is believed that these developments could take months.

Despite the above price fluctuations, the DeFi sector continued to grow from strength to strength, and the total amount trapped across the ecosystem was largely unaffected by the volatility in the secondary market.

In contrast, this flexibility and willingness to take risks to experiment with DeFi and AMM and increase returns, as evidenced by the steady increase in the total value of the value posted through the DeFi ecosystem, indicated strong buying interest.

The strong buying interest was subsequently confirmed by a decline in the following days, when the initial decline in bullish price expectations in the options market, which is evident in the development of the divergence of the front-end options for Bitcoin and Ethereum, was gradually corrected.

Additionally, this was driven by the front end of the futures curve while the rear end stayed largely flat. A more significant development rather than profit taking would result in a greater and broader re-evaluation of the market.

The shine of small cryptocurrencies
While the media focused on yet another round of price swings from Bitcoin and ETH, the real movement was in the small tokens that outperformed their large-cap counterparts by a 3: 1 ratio.

The fast growing world of DeFi is not without risks and is well documented by CoinTelegraph. Earlier this week, Yam Finance, its experimental DeFi protocol, made headlines.

The Yam protocol initially gained strength as the second purely decentralized DeFi project after Yearn Finance. A decentralized governance model was released that allowed YAM owners to decide on the protocol. Almost $ 500 million in capital was posted in 24 hours, before it soon crashes to zero after a database glitch was discovered.

First, Yam opened staking groups for Compound, Aave’s Lend, Chainlink’s Link, Wrapped ETH (WETH), YFI, Synthetix (SNX), Maker (MKR) and Uniswap V2 LP tokens.

However, most of the tokens used in Yam stakeout meetings crashed after the error occurred. Despite the hard lessons and memories of the high risks involved, the market rebounded strongly.

Bitcoin has gradually rebounded to the $ 11,500 region, but the total closed for DeFi is close to record highs.

Observe the Bitcoin and Gold correlation
At the macro level, the one-month correlation between Bitcoin and gold is starting to close day by day, rising to 68% before a slight correction.

Before extrapolating the thesis from the above, however, caution is advised, as the three-month correlation coefficient is 15% as the more intelligent measure.

Source: CoinTelegraph

LEAVE A REPLY