Market Wrap: Bitcoin Stumbles to $11,300; USDC Lending Rates Skyrocket

As the bitcoin market sees red, DeFi opportunities in stablecoin trading have some borrowing rates exploding to double digits.

  • Bitcoin (BTC) trading around $11,342 as of 20:00 UTC (4 p.m. ET). Slipping 4% over the previous 24 hours.
  • Bitcoin’s 24-hour range: $11,299-$11,943
  • BTC below its 10-day and 50-day moving averages, a bearish signal for market technicians.

btcaug11
Bitcoin trading on Coinbase since August 9.
Source: TradingView

Heavy sell volumes on spot exchanges such as Coinbase caused a fall in bitcoin’s price to as low as $11,299 Tuesday. Profit-taking is one driver of the dip, according to Chris Thomas, head of digital assets for broker Swissquote. “There are naturally some traders looking to take short term profits here, which is driving us lower,” Thomas told CoinDesk.

Read More: Bitcoin Rally Stalls as Increasingly Correlated Gold Drops Below $2K

Katie Stockton, a technical market analyst for Fairlead Strategies, says there are signs the bitcoin market in the short term may be headed even lower. “Bitcoin has seen upside follow-through on the back of its breakout above important resistance in the $10,000-$10,055 area,” Stockton said. “There are some signs of short-term exhaustion, however, that suggest a pullback could unfold over the next week.”

Traders were hitting the sell button on economic hedges Tuesday. Gold was in the red 5.6% and at $1,913 as of press time. Over the past month gold remains up, having gained 6.4%. Meanwhile, bitcoin has appreciated 22%.

btcvsgold
Bitcoin (orange) versus gold (yellow) over the past month.
Source: TradingView

Andrew Tu, an executive at crypto quant training firm Efficient Frontier, says a temporary bearish market for bitcoin won’t last, despite price dumps. “If the market faces exhaustion, we could see a larger correction,” he said. However, a positive news cycle will eventually bring another rally, Tu noted. “With all the positive news surrounding bitcoin, as well as the recent altcoin pumps, it is clear…

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