Market Wrap: Bitcoin Dips to $34.4K as Big-Name DeFi Tokens Trounce ETH

Bitcoin was slipping Friday on lower-than-average volumes for 2021 so far. In other news, while BTC and ETH are up this year, some DeFi tokens are doing even better.

  • Bitcoin (BTC) trading around $35,610 as of 21:00 UTC (4 p.m. ET). Slipping 9.4% over the previous 24 hours.
  • Bitcoin’s 24-hour range: $34,425-$39,673 (CoinDesk 20)
  • BTC below the 10-hour and 50-hour moving averages on the hourly chart, a bearish signal for market technicians.

Bitcoin trading on Bitstamp since Jan. 12.
Source: TradingView

The price of bitcoin fell Friday, a steady decline over the past 24 hours that saw the world’s oldest cryptocurrency bottom out as low as $34,425 before picking up to $35,610 as of press time.

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“The price rested at $40,000. Now we are waiting for a rollback to $34,000,” said Constantin Kogan, partner at crypto investment firm Wave Financial. “Most likely the next possible low will be at least $26,000.”

That’s a pretty bearish sentiment from an analyst, but the outsized volume numbers to open 2021 are certainly diminishing for the time being. For the first two weeks of the new year, bitcoin’s daily spot volume on the eight major exchanges tracked by CoinDesk (Bitfinex, Bitflyer, Bitstamp, Coinbase, Gemini, itBit, Kraken and Poloniex) averaged $6.1 billion per day. For Friday, spot volumes are at $4.2 billion, as of press time.

Spot volumes on major bitcoin exchanges in 2021.
(Shuai Hao/CoinDesk Research)
Source: CryptoCompare

“There is a definite tug and pull between North American and Asian traders in crypto assets,” noted Joel Edgerton, chief operating officer of cryptocurrency exchange BitFlyer USA. “Since the U.S. is going into a three-day weekend the U.S. trading volume will be lighter, so Asia will likely set the tone.”

Many investors and traders will be off Monday for Martin Luther King Jr. Day including the U.S. equities markets, which along with other major indexes are…

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