Crypto Market Update: Bitcoin, Ethereum and Altcoins
Buyers are flocking back to the crypto market and supporting Bitcoin (BTC) above 10,000 USD.
Every time BTC has fallen below this point, bargain hunters have jumped into action aggressively buying and pushing the price of BTC up again. On the chart, this price movement is highlighted in a number of long wicks close to the 10,000 USD level, suggesting strong support.
Elsewhere, Ethereum (ETH) is climbing. The second-biggest cryptocurrency has outperformed BTC again this week, climbing 4% while the world’s biggest crypto asset closed flat. Looking further ahead, we’ve seen some of the small altcoins winning big, with NEO and BNB, currently correcting, making significant gains on the back of new DeFi applications.
Altcoins Prosper on Yield Farming Craze.
The launch of new DeFi protocols on smaller blockchains is increasing the demand for Ethereum’s competitors. These altcoin’s goal is to depose the smart contract pioneer by making yield farming more accessible to the wider population with lower fees and quicker transactions.
NEO was up 11% last week, with funds flooding in as the new DeFi project Flamingo readies to launch on the 23rd of September.
Flamingo will rival other liquidity swap platforms, including Tron’s JustSwap and Binance’s BurgerSwap, which are experiencing mixed success in the market. Tron has dropped by over 5% last week, while Binance Coin has rallied by over 30%.
Rising Hashrate Could Lead to Higher Prices.
As the price of BTC enjoys some support, the hashrate is soaring.
Information from Blockchain.com shows that the hashrate is hitting record highs, with the seven-day average going over 135 exahashes per second (EH/s) for the first time ever.
The higher the BTC hashrate, the more mining power is supplied to the network, and the more secure the blockchain becomes. Historically, this additional investment in the network by miners has subsequently resulted in higher prices, creating a long-term correlation between hashrate and price.
Outlook for the Week Ahead.
Assuming the vital 10,000 USD level holds, BTC appears to be destined for further upward movement.
The continuous DeFi craze keeps on driving the wider market upwards, with billions being put into smart contracts over the last week as Tron, Binance, and others as they enter the decentralized finance market.
Meanwhile, BTC’s safe-haven status is greater than ever. Information from Coin Metrics highlights that the 30-day correlation between BTC and gold is at all-time highs, with the two assets likely profiting from weakness in the dollar.
The appeal of this safe-haven asset could see additional support on Wednesday as the Federal Reserve completes its final meeting before the next election. The central bank is believed that they will set new interest rate projections, which could trigger volatility across global markets.
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