Bitcoin
$42,294.50-0.68%
Ethereum
$2,887.68-3.19%
XRP
$0.904943-3.79%
Cardano
$2.06-2.42%
Polkadot
$27.72-4.38%
Stellar
$0.272224-2.78%
Dogecoin
$0.207885-1.03%
Chainlink
$22.46-3.63%
Uniswap
$20.01-4.59%
Polygon
$1.09-5.01%
Litecoin
$153.01-4.63%
Bitcoin Cash
$517.87-3.85%
Cosmos
$33.43-5.33%
Wrapped Bitcoin
$42,338.15-0.90%
Algorand
$1.64+0.09%
Filecoin
$70.97-4.75%
The Graph
$0.689536-0.53%
Tron
$0.090570-0.94%
Ethereum Classic
$47.27-3.28%
Aave
$282.97-3.38%
Tezos
$4.89-5.23%
Monero
$226.76-1.09%
EOS
$4.03-2.82%
NEO
$38.80-5.66%
IOTA
$1.26-2.23%
BitTorrent
$0.003258-2.52%
Bitcoin SV
$143.03+4.77%
Maker
$2,382.45-2.31%
Waves
$22.85-4.03%
Dash
$162.56-5.04%
Decred
$110.72-7.44%
Decentraland
$0.641192-5.24%
ICON
$1.54-6.65%
Zcash
$115.81-1.71%
NEM
$0.147215-3.22%
OmiseGO
$9.04-14.88%
Paxos Standard
$1.01+0.89%
NuCypher
$0.269097-4.10%
Yearn Finance
$28,497.35-2.48%
Qtum
$9.68-6.74%
Bitcoin Gold
$51.62-6.14%
Basic Attention Token
$0.623703-4.10%
0x
$0.869998-3.35%
Bancor
$3.42-3.03%
Ren
$0.758166-1.70%
Siacoin
$0.014901-2.39%
Band Protocol
$7.26-3.52%
Fetch.ai
$0.623915-6.07%
Kava.io
$4.85-5.25%
Nano
$4.50-8.38%
Loopring
$0.387217-3.73%
Storj
$1.07-5.19%
Numeraire
$37.93-3.76%
Lisk
$2.85-5.88%
Civic
$0.399494-3.99%
Enzyme
$188.42+86.64%
Orchid
$0.324612-0.69%
PAX Gold
$1,785.18+0.50%
Augur
$20.19-6.83%
Aragon
$4.70-6.07%
district0x
$0.145125-4.89%
Kyber Network
$1.44-3.36%
SingularDTV
$0.001308-2.49%
Tether
$0.999889+0.00%
USD Coin
$0.999873-0.05%
Dai
$1.00+0.10%

Bitcoin Hits 16-Month High Despite Sell-Off in Global Stocks

Bitcoin's (BTC) price has climbed to 15-month highs even as coronavirus-induced instability rocks the stock markets.

Oct 27, 2020 at 11:41 a.m. UTC
Updated Sep 14, 2021 at 10:24 a.m. UTC

Bitcoin's (BTC) price continues to rise even as coronavirus-induced instability rocks the stock markets.

  • Bitcoin is trading near $13,420 at time of writing, a 2.77% gain on the day.
  • That marks a fresh 16-month high for the cryptocurrency, which is now up 25% for the month and 87% on a year-to-date basis.
  • Bitcoin's on-chain data, too, is showing no signs of investor trepidation.
  • The number of daily deposits to cryptocurrency exchanges fell to a nine-month low of 26,889 on Monday.
  • Further, the total number of bitcoins held on exchanges slipped to a two-year low of 2,478,799 BTC, according to data source Glassnode.
  • So the bullish mood continues for bitcoin, even though the global stock markets suffered losses and Wall Street's benchmark equity index, the S&P 500, fell nearly by 2% on coronavirus concerns Monday.

Bitcoin: daily exchange deposits and aggregate balance on exchanges

  • The decline in exchange deposits suggests investors are unperturbed by the risk aversion in traditional markets and see low odds of bitcoin suffering an equity market-induced sell-off.
  • Investors typically move coins from their wallets to exchanges to liquidate holdings when expecting a price slide, and take direct custody of their assets when the cryptocurrency is expected to rally.
  • In effect, we appear to be seeing a weakening of the positive correlation between bitcoin and the S&P 500 seen since the March crash.
  • "The decline in transfers to exchanges despite risk-off in equity markets is a bullish sign," Matthew Dibb, co-founder, and COO of Stack Funds, told CoinDesk over WhatsApp.
  • The cryptocurrency is likely to stay strong in the coming weeks, he added.
  • Bitcoin's options market is also retaining bullish bias.
  • The one-, three- and six-month put-call skews, which measure the cost of puts relative to calls, continue to hover below zero, a sign of calls – bullish bets – drawing higher prices (or demand) than puts – bearish bets.

Bitcoin put-call skews

  • The cryptocurrency suffered a minor drop to $12,700 during Monday's U.S. trading hours only to chart a quick recovery to levels above $13,000.
  • "The next resistance to take out is $13,800 (June 2019 high).
  • "If bitcoin breaks below $12,700, we will take action and decrease our exposure further," Patrick Heusser, a senior cryptocurrency trader at Zurich-based Crypto Broker AG told CoinDesk in a Twitter chat.
  • Disclosure: The author holds small positions in bitcoin and litecoin.

DISCLOSURE

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

Loading...