Market Wrap: Bitcoin Slips to $11,300; Ether Locked in DeFi Is Flat

Oct 13, 2020 at 20:53 UTC.Bitcoin's price is slipping while the amount ether parked in DeFi is in neutral.

Bitcoin trading around $11,397 as of 20:00 UTC. Slipping 1.3% over the previous 24 hours.

Leow's analysis shows bitcoin above $11,000 signals a longer-term bull trend.

If bitcoin's price goes below that "Support" level, she maintains, a long-term bear market could develop.

Bitcoin's implied volatility, which forecasts price gyrations and is used often by options traders to analyze trading strategies, is at a low not seen since July.Alessandro Andreotti, an over-the-counter trader based in Italy, notes that bitcoin has been operating in tandem with the stock market.

Increasing correlation with the S&P 500 based on data from the CoinDesk Bitcoin Price Index seems to back this up.

"If the S&P 500 can break into all-time highs, bitcoin could move up to $13,000."

By contrast, the amount of bitcoin locked in DeFi has for the most part steadily increased, and is now closing in on 150,000 BTC.Brian Mosoff, chief executive officer of investment firm Ether Capital, said bitcoin holders may be seeing a powerful DeFi use case for the world's oldest cryptocurrency that didn't exist until recently.

"Until recently, bitcoin was isolated from the power and flexibility of Ethereum," Mosoff said.

"Now, bitcoin holders can wrap their BTC and interact with a decentralized exchange, or borrow against a stablecoin. The Ethereum community has been able to natively do these things since day one."