Here is what you need to know on Tuesday, September 1, 2020.
Market:
Bitcoin lethargic price action has continued to dominate the market since last week. Resistance at $11,800 is putting immense pressure on key levels at $11,700 and $11,600. For now, BTC is teetering at $11,722 after trading an intraday high at $11,723. The prevailing trend is bearish but on the bright side, the volatility is on the low, therefore, price actions would be limited in the current session (European).
Ethereum, this time is breaking away from Bitcoin. The second-largest crypto has extended the price action above $400 to the point of retesting the yearly highs at $447. Ether is trading at $446 at the time of writing. The bullish trend has turned bearish but just like Bitcoin, low trading volume means minimal price action. Therefore, higher support is envisaged to keep the bullish case and in favor of gains above $450 live.
Ripple has added over 2.5% in gains on the day. This follows an impressive move from $0.2814 (opening value) to $0.2889. On the upside, the seller congestion at $0.29 is still unconquered. The critical $0.30 is likely to remain at bay as long as XRP continues to lose track before hitting $0.29.
Although Bitcoin has stalled, some cryptocurrencies among the top 50 are recording incredible gains such as Tron (14%), UMA (26.26%), DeFi’s Compound (23.17%), Ren (18.83%), and Kusama (37.97%).
Chart Of The Day: ETH/USD 4-hour
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Market:
Following the outbreak of Coronavirus in March, Bitcoin was heavily correlated to the stock market. However, in the last couple of months, the largest digital asset has continued to break away from the traditional market. On the other hand, its correlation with gold increased amid Bitcoin’s run-up to $12,500 and the precious metal to $2,000 per ounce.
As bitcoin turns mundane, unable to break above $12,000 investors are starting to turn their attention back to the stock market. The stock assets are currently performing well mainly supported by a series of political and economic developments. For instance, the S&P 500 gained over 7% in August bringing the growth over the last five months to 35%.
Industry:
Yearn.finance was recently a barely known digital asset. However, the last few weeks have seen it steal the limelight even from Bitcoin. According to the data by DeFi Pulse, YFI is currently the sixth-largest DeFi token with $777 million in locked value. Yearn.finance growth has been so ballistic, surpassing long-standing DeFi protocols such as Compound. The value of one YFI token has more than tripled the value of Bitcoin (BTC).
The growth of Yearn.finance has also attracted criticism and support from key experts and analysts. Some believe the asset is ready to enter a price discovery phase, especially with Binance launching YFI futures. As short positions increase it creates an opportunity for a short squeeze and eventually the price will drop. However, the drop is likely to be followed by a massive price rally. For instance, the token is trading around $39,500 after recovery from the recent dip to $29,000.
Regulation:
The United States elections are fast approaching: President Donald Trump is seeking reelection for the second term. Trump’s biggest competition in the November elections is Joe Biden, from the Democrat Party. Mick Mulvaney, Trump’s former chief of staff envisions an “avalanche” of regulation if Biden manages to topple Trump from White House. The booming stock market is also predicted to suffer greatly if Biden ascends to the office. Analysts are wondering what a falling stock market would mean for Bitcoin. Note that March Bitcoin followed closely the actions of the stock market.
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