Market Wrap: Bitcoin Rebounds to $10.5K; Stablecoin Market Cap ‘Goes Parabolic’

Bitcoin has performed well in the face of a bleak news cycle while stablecoin assets in the crypto ecosystem continue to grow.

  • Bitcoin (BTC) trading around $10,515 as of 20:00 UTC (4 p.m. ET). Slipping 0.44% over the previous 24 hours.
  • Bitcoin’s 24-hour range: $10,362-$10,667
  • BTC above its 10-day moving average but below the 50-day, a sideways signal for market technicians.

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Bitcoin trading on Coinbase since September 30.
Source: TradingView

Bitcoin’s price stumbled in the early hours of Friday, falling to as low as $10,362 on spot exchanges such as Coinbase around 5:00 UTC (1 a.m. ET) before rising to $10,515 as of press time.

Despite the continuous stream of negative news this past week, the crypto markets have remained resilient, according to Zachary Friedman, chief operating officer of brokerage Global Digital Assets.

“If we look back, we have seen a hack of Kucoin, a major BitMEX lawsuit and even trouble in the traditional markets through the announcement that [U.S. Pres. Donald] Trump contracted COVID-19,” Friedman said. “Historically, these three collective events would have sent markets reeling. This shows that the market is increasingly filled with more bullish investors [who] believe in the fundamentals.”

Bitcoin’s dip to $10,362 Friday is its lowest price point since Sept. 24, well before the recent torrent of bad news began and perhaps a sign of the world’s oldest cryptocurrency’s capacity to recover quickly.

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Bitcoin trading on Coinbase the past ten days.
Source: TradingView

Jean-Baptiste Pavageau, a partner at crypto quant trading firm ExoAlpha, anticipates some increased volatility ahead. “Liquidity is a key metric for professional traders,” said Pavageau. “While BitMEX witnessed sometimes unusual price behavior on its exchange, it would not be surprising to observe more of these spikes and crashes while the liquidity dries-up.”

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