Bitcoin (BTC) price rose 6.95% last week, from $ 10,804 on October 5th to $ 11,555 by October 12th. The rally was Bitcoin’s best week since July, and the data shows a marked shift in the price. Market sentiment about digital assets.
Bitcoin’s daily valuation is 62.4, according to data from TheTie, an alternative provider of digital asset data. The study measures the tone of Twitter conversations to generate positive or negative feelings in the market, and a score above 50 indicates that market sentiment is positive.
Bitcoin and the rest of the cryptocurrency industry faced strong downside pressure in early October. CFTC and the Department of Justice crashed into BitMEX and on October 1 accused the company of illegally managing a derivatives exchange, and on October 6, the UK’s FCA banned cryptocurrency derivatives.
However, none of these events produced the negative results that many investors expected. Additionally, the negative news was followed by upbeat news, such as that Square was donating 1% of its assets to Bitcoin.
Overall, bullish signals continue to build up for Bitcoin, and with the digital assets rising to $ 11,500, the overall market cap for the entire sector increased 6% from $ 339 billion to $ 359.
Additionally, a recent report looking at more than 30 committee members, including eToro cryptocurrency commentator David Derhey, Alpha5 CEO Vishal Shah and LMAX Group strategist Joel Kruger, found that Bitcoin will reach 14,283 by the end of 2020. In dollars According to the expert. … Center.
Blockchain activity matches sentiment
The numerous accounts in the chain also matched Bitcoin’s positive sentiment. Despite the increase in investor activity, the price has yet to move. According to cryptocurrency analyst Willie Wu, this indicates an increase in “investor activity” that has yet to be accounted for in the bitcoin price. Woo sa:
Investor activity depends on the size in the chain. This is because when BTC switches between wallets between different participants, we are assuming that it has been pushed out of the chain (official or altcoin). This is an imperfect measure, but it is almost what happens. ”
Not only has activity increased, but the number of coins on exchanges has steadily decreased, with a reversal trend similar to the period of accumulation that occurred before the bull market in 2017.
With both fundamental and technical analysis painting an optimistic picture in the midst of the current political and economic turmoil, a perfect storm appears to be looming for Bitcoin.
DeFi Active Recovery continues
In 2020, DeFi played a major role in fueling tensions over cryptocurrency and ether (ETH) prices, but most DeFi tokens have lost their value in the past two months.
DeFi Pulse data shows that the total value of DeFi is $ 10.89 billion. Meanwhile, Uniswap’s total value is $ 2.6 billion and the trading volume on the decentralized exchange continues to grow steadily.
According to Flipside Crypto, around $ 300 million in tokens are sent to DeFi decentralized apps every day. This beats the central exchanges, which are currently around $ 156 million in daily flows.
Uniswap alone is currently responsible for 70% of DeFi’s streams, with $ 211 million pouring into their liquidity pools each day.
The emergence of DeFi protocols has drawn attention to Bitcoin, and to date, more than $ 1.1 billion of BTC has been encoded on the Ethereum blockchain with just-wrapped BTC.
Flipside Crypto notes that about $ 385 million worth of WBTC and renBTC changed hands in September.
Big hurdles lie ahead
While many factors indicate an eventful end of the year for Bitcoin, it is worth noting that there are significant hurdles ahead. Historical data shows that bitcoin has sold for $ 12,000 at least three times this year as miners and whales earn. When the price approaches the $ 12,000 mark again, there is a risk that it will happen for the fourth time.