Buyers have stepped back into the crypto market and are holding their own Bitcoin above $ 10K.
Every time the cryptocurrency fell below this level, bargain hunters sprang into action – aggressively buying and pushing Bitcoin make a backup. On the chart, this price action is reflected in a series of long wicks around the $ 10K indicating strong support.
Elsewhere, Ethereum goes up. The second largest cryptocurrency is faster than Bitcoin again this week, gaining 4% while the world’s largest cryptoasset ends flat. Even further ahead, small altcoins win a lot, with NEO and BNB making great profits thanks to new DeFi products.
This week’s highlights
- Altcoins thrive on Farming Frenzy yield
- Rising hash hints at higher prices
Altcoins thrive on Farming Frenzy yield
The launch of DeFi protocols on smaller blockchains is driving demand for Ethereum’s competitors. These altcoins aim to dethrone the smart contract leader by making yield farming more accessible to the masses with lower fees and faster transactions.
Flamingo will compete with other liquidity swap protocols, including Tron’s JustSwap and Binance’s BurgerSwap, which find mixed fortunes in the market. Tron is down 5% in the past week, while Binance Coin is up more than 30%.
Rising hash hints at higher prices
While the price of Bitcoin finds support, the hashrate is skyrocketing.
Data from Blockchain.com shows that hashrate is reaching its all-time high, with the seven-day average rising above 135 exahashes per second (EH / s) for the first time ever.
The higher the Bitcoin hashrate, the more mining power is allocated to the network and the more secure the blockchain becomes. Historically, this increased investment in the network by miners has eventually reflected in higher prices, creating a long run correlation between hashrate and price.
The coming week
Assuming the critical USD 10,000 level, Bitcoin appears to be upside down.
The ongoing DeFi frenzy continues to drive the broader market up, with billions poured into smart contracts last week as Tron, Binance and other players branch out to decentralized financing.
Meanwhile, the appeal of Bitcoin’s safe haven is stronger than ever. Data from Currency statistics shows that the 30-day correlation between Bitcoin and gold is at record highs, with both assets likely benefiting from the dollar’s weakness.
This call for a safe haven could be reinforced on Wednesday if the Federal Reserve finalizes it last meeting before the elections. The central bank is expected to prepare new interest rate forecasts, which could lead to volatility in world markets.
Image by Gerd Altmann from Pixabay