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Market coverage: Bitcoin crosses $ 41.9,000 as interest rates on ether futures so far rise by 85% in 2021.

Bitcoin broke a fresh all-time record on Friday as investors continued to draw some of their limited supply. The ether futures market also set records as derivatives traders check the second largest cryptocurrency by market capitalization.

  • Bitcoin (BTC) is trading around $ 39,304 from 21:00 UTC (16:00 ET). Earn 0.64% in the previous 24 hours.
  • 24-hour bitcoin range: $ 36,579 – $ 41,962 (CoinDesk 20)
  • BTC below the 10-hour but above the 50-hour moving average on the hourly chart, a side signal for market technicians.

Bitcoin trading on Bitstamp from January 5.
Source: TradingView

New records for all time are again the topic of the day on Friday, the third consecutive day the price of bitcoins reached a record level. At around 15:00 UTC (10:00 ET), the price of bitcoin changed hands to $ 41,962, according to CoinDesk 20. Since then, the price has dropped to $ 39,304 at the time of the press release.

Read more: Over $ 41,000: Bitcoin continues to forge new highs

“BTC is currently opening prices with high demand and limited supply,” said Joel Edgerton, chief operating officer of Bitflyer USA. “Everyone who holds bitcoin thinks they will go higher, so they do.”

According to data aggregator Glassnode, the current bitcoin supply is 18,594,037 BTC – and investors don’t seem to be able to get enough of the world’s oldest cryptocurrency.

“The continuing relentless cash flows in BTC from institutional and some retailers provide a significant positive deviation,” said Chad Steinglas, head of derivatives trading at CrossTower. “As more and more coins are locked into long-term investments and are essentially taken out of circulation, squeezing available stocks harder and harder.”

The circulating supply of bitcoins over the last five years (orange), superimposed on dotted price lines, has halved events.
Source: Glassnode

“Everyone without BTC is afraid to miss out and wants to buy,” Edgerton added to Bitflyer. “Borrowing [U.S. dollar] stablecoins to buy BTC is a crypto transfer trade. ”

The three most stable coins – tether (USDT), US dollar (USDC) and dai (DAI) – have a total market capitalization of $ 28 billion, much of which consists of tether – $ 22,916,992,958, according to CoinGecko .

Limitation of market capitalization and volume in the last year.
Source: CoinGecko

“The doors are fully open and buying pressure is building en masse throughout the year based on macrocycles, COVID-19, the US election and a sense of general anxiety,” said Henrik Kugelberg, a non-prescription bitcoin trader. . “In the short term, I expect a failure of about 15%, but this will only be a boom in the mass bull – $ 100,000 this year is quite possible!”

Read more: Why Joe Biden’s $ 3T stimulus package could add fuel to the Bitcoin rally

The market for bitcoin derivatives was also heavy. Jason Lau, chief operating officer of the San Francisco-based OKCoin exchange, noted that nearly $ 1 billion was liquidated there on Thursday. “Most of these liquidations are long, and this is the third highest amount since November.”

In BitMEX alone, more than $ 100 million in liquidations have occurred in the last three days in the bitcoin market at the scene, with liquidations of $ 65 million purchases signaling short-term traders against $ 42 million in crypto-equivalent margin call for long positions. .

Bitcoin liquidations of BitMEX in the last three days.
Source: Oblique

In the options market, Denis Vinokurov, head of research at brokerage firm Bequant, noted that traders like the strike price of $ 36,000 for bitcoin.

Bitcoin options at the strike price the day before
Source: Oblique

“Given the heavy focus on the $ 36,000 bitcoin options strike at the end of January, which expires with multiple game options and risks, this separates bitcoin from the basics, so to speak,” he said. Vinokurov in front of CoinDesk. “It will be interesting to see if the market can separate this bitcoin risk from the rest of the market.”

Ether futures with an interest rate of 3.7 billion dollars

Ether (ETH) fell on Friday, trading around $ 1159 and slipping 6.5% in 24 hours from 21:00 UTC (16:00 ET).

Read more: Ethereum 2.0, explained in 4 easy metrics

On January 1, open-ended (OI) ether futures on major derivative stocks were worth $ 2 billion. On Thursday, OI increased 85% to a record $ 3.7 billion, according to aggregator Skew. Binance led the OI with $ 820 million, more than 20% of the total ether futures market.

Ether futures have been attracting interest on major exchanges over the past month.
Source: Oblique

“ETH has yet to break its previous record of more than $ 1,400,” said Brian Mosoff, chief executive of investment firm Ether Capital. “To date, there is less access to invest in ether than bitcoin. We are waiting for the upcoming launch of CME [ether] futures, community members who are more crypto-native and have fewer restrictions on how to hold ETH are likely to seek to offer a start.

Other markets

CoinDesk 20’s digital assets are on Red Friday. Significant losers at 21:00 UTC (16:00 ET):

  • Oil rose 3%. Price per barrel of intermediate raw material from West Texas: 52.48 dollars.
  • Gold was in the red with 3.4% and reached 1848 dollars at the time of the press.
  • Yields on 10-year US government bonds rose on Friday, jumping to 1,110 and 2.5% on the green.

CoinDesk 20: The assets that matter most to the market

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