Bitcoin Prices Stable As DeFi Steals The Show

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While DeFi attracts investors with stories of 1000% annual returns, Bitcoin, the original cryptocurrency and still by far the largest in terms of market capitalization, is finally stable. He spent most of the month spending $ 11,000 – roughly a hundred dollars. Its current price is $ 11,075. After falling from around $ 12,000 to $ 10,000 after September 1, the price of Bitcoin remained dynamic for the remainder of the month. He spent the next two weeks embossing between $ 10,200 and $ 10,600 before slowly rising at high tide to $ 11,000. Since then, the coin’s price has grown steadily, not dropping below $ 10,700.

Meanwhile, DeFi – that’s decentralized finance, the umbrella term for non-conservative financial products known, among other things, to produce insanely high returns in recent months – is struggling in the sand.

Take newcomer $ UNI, Uniswap’s new token, which has doubled in price since its launch on Wednesday, to $ 6.63. Or $ BAL, the governance token of a similar decentralized exchange, Balancer, which fell 14% overnight to $ 18.52.

Still, Bitcoin’s relative stability may provide no reason to celebrate. Historically, the price of Bitcoin declines in September. And around the same time last year, things started to go wrong.

Between August 19 and September 28, 2019, the price of Bitcoin rose from $ 11,000 to a threshold of just above $ 8,000. In the remaining months of this year, trading volumes have become more volatile. By mid-December, the price had bottomed out at $ 6,640, a level not seen since the previous bear market.

The blockchain analysis firm Chainalysis in part attributed Last year the prices of the multibillion-dollar cryptocurrency scam, PlusToken, fell. He said the scam’s money laundering tactics were a major contributor to the sale of Bitcoin in the fourth quarter.

It appears that in times of relative global stability, the price of Bitcoin is volatile. This year, as the world burns down and its people fall ill in a second wave of the coronavirus pandemic, the price of Bitcoin is stable. Weird.

Warning

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment or other advice.

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