Logo

Market Wrap: Bitcoin Dips to $11.5K; Cardano Is Making a Big DeFi Move

Bitcoin’s price is trending down and an Ethereum competitor is entering the DeFi race this weekend.

  • Bitcoin (BTC) trading around $11,579 as of 20:00 UTC (4 p.m. ET). Slipping 2.4% over the previous 24 hours.
  • Bitcoin’s 24-hour range: $11,348-$11,919
  • BTC below 10-day and 50-day moving averages, a bearish signal for market technicians.
btcaug7
Bitcoin trading on Coinbase since August 5.Source: TradingView

Bitcoin’s price was able to rally to as high as $11,917 Friday before losing momentum, falling back into the $11,500 range. “Over the past day, bitcoin tested the level of $11,900 but it did not succeed, and BTC slipped,” said Constantine Kogan, partner at crypto fund of funds BitBull Capital. 

Read More: Fixing This Bitcoin-Killing Bug Will (Eventually) Require a Hard Fork

Bitcoin and gold continue to trade together. Gold is also down Friday, in the red 1.6% and at $2,030 as of press time. “The gold/BTC correlation is at an all-time high right now,” said Daniel Koehler, liquidity manager for cryptocurrency exchange OKCoin. “The one-month correlations between BTC and gold have seen a significant spike over the past two weeks, currently sitting at about 67%,” he added. 

skew_bitcoingold_realized_correlation
One-month realized correlation for bitcoin-gold over the past year.Source: Skew

One downward trending day is not altering optimism about the crypto market, added Koehler. “With bitcoin following gold as a store of value, and DeFi pushing ETH, the excitement is palpable in the trading community right now.” 

John Willock, CEO of digital asset liquidity provider Tritum, agrees. “Sentiment in the market is highly buoyant and generally positive market news is increasing confidence and aggression in positioning,” he said. “I expect to see bitcoin bounce back quickly to $12,000 with ether to $400 this weekend.”

Ethereum rival Cardano making progress

The second-largest cryptocurrency by market capitalization (ETH), ether, was down Friday, trading around $347 after slipping 4.6% in 24 hours as of 20:00 UTC (4:00 p.m. ET). 

Read More: Polkadot Releases Rococo, Test Environment for Interoperable ‘Parachains’

Smart contact platform Cardano intends to start producing proof-of-stake (PoS) mainnet blocks this weekend. Ethereum’s switch to PoS from its current proof-of-work setup is expected sometime by the end of the year. 

Since the start of 2020, Cardano’s token, ada, has seen a market capitalization increase from $1 billion to $4.5 billion, according to CoinGecko. The platform, a competitor to Ethereum, has taken a methodical approach towards launching and now has 770 pools staking almost 20% of ada supply.

cardanochart
Cardano’s ada token market capitalization since 1/1/20.Source: CoinGecko

George Clayton, managing partner of Cryptanalysis Capital, is looking forward to watching Cardano in the DeFi race, as smart contract capabilities for building decentralized applications on the platform are expected to launch later in 2020. “The transition to PoS mainnet is complete but stake pools do not start producing blocks until Aug. 8,” he said. “Very interested to see what happens with Cardano; that’s a big moment for the protocol.” 

Other markets

Digital assets on the CoinDesk 20 are mostly in the red Friday. One notable winner as of 20:00 UTC (4:00 p.m. ET): 

  • chainlink (LINK) + 0.62%

Read More: Kyber CEO Predicts 2020 Transactions at $3B as DeFi Token Soars

Notable losers as of 20:00 UTC (4:00 p.m. ET): 

  • zcash (ZEC) - 8.1%
  • tezos (XTZ) - 7.4%
  • dash (DASH) - 7.4%

Read More: Ethereum Classic Attacker Double-Spends $1.68M in Second Attack

Equities:

  • In Asia, the Nikkei 225 closed in the red 0.39% as weak corporate earnings spurred profit taking ahead of a three-day weekend in Japan.
  • In Europe, the FTSE 100 ended the day flat, in the green 0.09%. as U.S. tensions with China countered better-than-expected job numbers.
  • In the United States, the S&P 500 lost 0.40% as progress slows on negotiations for fresh coronavirus economic stimulus.

Read More: NBA’s Spencer Dinwiddie, Andre Iguodala Join Dapper Labs $12M Funding 

Commodities: 

  • Oil is down 1%. Price per barrel of West Texas Intermediate crude: $41.51.

Read More: Binance Says NY Banks Can Now Use Its Stablecoin After Approval

Treasurys:

  • U.S. Treasury bonds all climbed Friday. Yields, which move in the opposite direction as price, were up most on the 10-year, in the green 5.4%.

Read More: Privacy Group Slams California Bill Putting Health Records on Blockchain

coindesk20_endofarticle_banner_1500x600

Read more about...

GoldCommoditiesBitcoinEtherZcashDashTezosCardanoChainlinkEquities
Disclosure

The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.

{"props":{"pageProps":{"data":{"headline":"Market Wrap: Bitcoin Dips to $11.5K; Cardano Is Making a Big DeFi Move","slug":"market-wrap-bitcoin-dips-cardano-making-big-defi-move","id":502070,"type":"news","typeName":"story","excerpt":"After testing a $11,900 high bitcoin takes a dip while a DeFi competitor to Ethereum checks off a roadmap box. ","category":{"name":"Markets","slug":"markets"},"published":"2020-08-07T20:45:30","updated":"2020-08-07T20:45:47","_post_type":"post","authors":[{"imgSrc":"https://static.coindesk.com/wp-content/uploads/2019/04/Daniel-Headshot-21-Edit-275x275.jpg","socialAccounts":[{"type":"twitter","url":"https://twitter.com/danielcawrey"},{"type":"facebook","url":"https://www.facebook.com/dcawrey"}],"name":"Daniel Cawrey","slug":"daniel-cawrey","email":"dcawrey@coindesk.com"}],"media":{"type":"image","images":{"id":502072,"alt":"cdbpiaug7","source":"Source: CoinDesk 20 Bitcoin Price Index","url":"","mime":"image/jpeg","full":{"src":"https://static.coindesk.com/wp-content/uploads/2020/08/cdbpiaug7-scaled.jpg","width":2560,"height":1635},"desktop":{"src":"https://static.coindesk.com/wp-content/uploads/2020/08/cdbpiaug7-710x458.jpg","width":710,"height":458},"mobile":{"src":"https://static.coindesk.com/wp-content/uploads/2020/08/cdbpiaug7-345x222.jpg","width":345,"height":222},"mobile@2x":{"src":"https://static.coindesk.com/wp-content/uploads/2020/08/cdbpiaug7-690x444.jpg","width":690,"height":444},"mobile@3x":{"src":"https://static.coindesk.com/wp-content/uploads/2020/08/cdbpiaug7-1035x666.jpg","width":1035,"height":666}}},"tags":[{"name":"Gold","slug":"/tag/gold","href":"/tag/[tag]"},{"name":"Commodities","slug":"/tag/commodities","href":"/tag/[tag]"},{"name":"Bitcoin","slug":"/tag/markets-bitcoin","href":"/tag/[tag]"},{"name":"Ether","slug":"/tag/ether","href":"/tag/[tag]"},{"name":"Zcash","slug":"/crypto/zcash","href":"/crypto/[slug]"},{"name":"Dash","slug":"/tag/dash","href":"/tag/[tag]"},{"name":"Tezos","slug":"/tag/tezos","href":"/tag/[tag]"},{"name":"Cardano","slug":"/tag/cardano","href":"/tag/[tag]"},{"name":"Chainlink","slug":"/tag/chainlink","href":"/tag/[tag]"},{"name":"Equities","slug":"/tag/equities","href":"/tag/[tag]"}],"primaryTag":{"name":"Cardano","slug":"/tag/cardano","href":"/tag/[tag]"},"body":[{"type":"copy","content":"\u003cp\u003eBitcoin’s price is trending down and an Ethereum competitor is entering the DeFi race this weekend.\u003c/p\u003e\n"},{"type":"list","data":{"style":"unordered","items":["\u003ca href=\"/price/bitcoin\"\u003eBitcoin\u003c/a\u003e (BTC) trading around $11,579 as of 20:00 UTC (4 p.m. ET). Slipping 2.4% over the previous 24 hours.","Bitcoin’s 24-hour range: $11,348-$11,919","BTC below 10-day and 50-day moving averages, a bearish signal for market technicians."]}},{"type":"image-v2","data":{"id":502078,"source":"TradingView","caption":"Bitcoin trading on Coinbase since August 5.","lightBoxShown":true,"images":{"id":502078,"alt":"btcaug7","source":"Bitcoin trading on Coinbase since August 5.","url":"","mime":"image/jpeg","full":{"src":"https://static.coindesk.com/wp-content/uploads/2020/08/btcaug7-scaled.jpg","width":2560,"height":1225},"desktop":{"src":"https://static.coindesk.com/wp-content/uploads/2020/08/btcaug7-775x371.jpg","width":775,"height":371},"mobile":{"src":"https://static.coindesk.com/wp-content/uploads/2020/08/btcaug7-285x136.jpg","width":285,"height":136},"mobile@2x":{"src":"https://static.coindesk.com/wp-content/uploads/2020/08/btcaug7-570x273.jpg","width":570,"height":273},"mobile@3x":{"src":"https://static.coindesk.com/wp-content/uploads/2020/08/btcaug7-855x409.jpg","width":855,"height":409},"popup":{"src":"https://static.coindesk.com/wp-content/uploads/2020/08/btcaug7-1200x574.jpg","width":1200,"height":574}}}},{"type":"copy","content":"\u003cp\u003eBitcoin’s price was able to rally to as high as $11,917 Friday before losing momentum, falling back into the $11,500 range. “Over the past day, bitcoin tested the level of $11,900 but it did not succeed, and BTC slipped,” said Constantine Kogan, partner at crypto fund of funds BitBull Capital.\u0026nbsp;\u003c/p\u003e\n"},{"type":"copy","content":"\u003cp\u003e\u003cstrong\u003e\u003cem\u003eRead More: \u003c/em\u003e\u003c/strong\u003e\u003ca href=\"https://www.coindesk.com/fixing-this-bitcoin-killing-bug-will-eventually-require-a-hard-fork\"\u003e\u003cstrong\u003e\u003cem\u003eFixing This Bitcoin-Killing Bug Will (Eventually) Require a Hard Fork\u003c/em\u003e\u003c/strong\u003e\u003c/a\u003e\u003c/p\u003e\n"},{"type":"copy","content":"\u003cp\u003eBitcoin and gold continue to trade together. Gold is also down Friday, in the red 1.6% and at $2,030 as of press time. “The gold/BTC correlation is at an all-time high right now,” said Daniel Koehler, liquidity manager for cryptocurrency exchange OKCoin. “The one-month correlations between BTC and gold have seen a significant spike over the past two weeks, currently sitting at about 67%,” he added.\u0026nbsp;\u003c/p\u003e\n"},{"type":"image-v2","data":{"id":502076,"source":"Skew","caption":"One-month realized correlation for bitcoin-gold over the past year.","lightBoxShown":true,"images":{"id":502076,"alt":"skew_bitcoingold_realized_correlation","source":"One-month realized correlation for bitcoin-gold over the past year.","url":"","mime":"image/png","full":{"src":"https://static.coindesk.com/wp-content/uploads/2020/08/skew_bitcoingold_realized_correlation.png","width":1200,"height":670},"desktop":{"src":"https://static.coindesk.com/wp-content/uploads/2020/08/skew_bitcoingold_realized_correlation-775x433.png","width":775,"height":433},"mobile":{"src":"https://static.coindesk.com/wp-content/uploads/2020/08/skew_bitcoingold_realized_correlation-285x159.png","width":285,"height":159},"mobile@2x":{"src":"https://static.coindesk.com/wp-content/uploads/2020/08/skew_bitcoingold_realized_correlation-570x318.png","width":570,"height":318},"mobile@3x":{"src":"https://static.coindesk.com/wp-content/uploads/2020/08/skew_bitcoingold_realized_correlation-855x477.png","width":855,"height":477}}}},{"type":"copy","content":"\u003cp\u003eOne downward trending day is not altering optimism about the crypto market, added Koehler. “With bitcoin following gold as a store of value, and DeFi pushing ETH, the excitement is palpable in the trading community right now.\u0026#8221;\u0026nbsp;\u003c/p\u003e\n"},{"type":"copy","content":"\u003cp\u003eJohn Willock, CEO of digital asset liquidity provider Tritum, agrees. “Sentiment in the market is highly buoyant and generally positive market news is increasing confidence and aggression in positioning,” he said. “I expect to see bitcoin bounce back quickly to $12,000 with ether to $400 this weekend.”\u003c/p\u003e\n"},{"type":"heading","data":{"level":2,"content":"Ethereum rival Cardano making progress","uppercase":false}},{"type":"copy","content":"\u003cp\u003eThe second-largest cryptocurrency by market capitalization (ETH), \u003ca href=\"/price/ethereum\"\u003eether,\u003c/a\u003e was down Friday, trading around $347 after slipping 4.6% in 24 hours as of 20:00 UTC (4:00 p.m. ET).\u0026nbsp;\u003c/p\u003e\n"},{"type":"copy","content":"\u003cp\u003e\u003cstrong\u003e\u003cem\u003eRead More: \u003c/em\u003e\u003c/strong\u003e\u003ca href=\"https://www.coindesk.com/polkadot-releases-parachain-testnet-rococo\"\u003e\u003cstrong\u003e\u003cem\u003ePolkadot Releases Rococo, Test Environment for Interoperable ‘Parachains’\u003c/em\u003e\u003c/strong\u003e\u003c/a\u003e\u003c/p\u003e\n"},{"type":"copy","content":"\u003cp\u003eSmart contact platform Cardano intends to start producing proof-of-stake (PoS) mainnet blocks this weekend. Ethereum’s switch to PoS from its current proof-of-work setup is expected sometime by the end of the year.\u0026nbsp;\u003c/p\u003e\n"},{"type":"copy","content":"\u003cp\u003eSince the start of 2020, Cardano’s token, \u003ca href=\"/price/cardano\"\u003eada\u003c/a\u003e, has seen a market capitalization increase from $1 billion to $4.5 billion, according to CoinGecko. The platform, a competitor to Ethereum, has taken a methodical approach towards launching \u003ca href=\"https://forum.cardano.org/t/and-so-it-begins-reflections-on-this-first-shelley-epoch/37544\"\u003eand now has 770 pools staking almost 20% of ada supply\u003c/a\u003e.\u003c/p\u003e\n"},{"type":"image-v2","data":{"id":502074,"source":"CoinGecko","caption":"Cardano’s ada token market capitalization since 1/1/20.","lightBoxShown":true,"images":{"id":502074,"alt":"cardanochart","source":"Cardano’s ada token market capitalization since 1/1/20.","url":"","mime":"image/jpeg","full":{"src":"https://static.coindesk.com/wp-content/uploads/2020/08/cardanochart.jpg","width":1578,"height":1002},"desktop":{"src":"https://static.coindesk.com/wp-content/uploads/2020/08/cardanochart-775x492.jpg","width":775,"height":492},"mobile":{"src":"https://static.coindesk.com/wp-content/uploads/2020/08/cardanochart-285x181.jpg","width":285,"height":181},"mobile@2x":{"src":"https://static.coindesk.com/wp-content/uploads/2020/08/cardanochart-570x362.jpg","width":570,"height":362},"mobile@3x":{"src":"https://static.coindesk.com/wp-content/uploads/2020/08/cardanochart-855x543.jpg","width":855,"height":543},"popup":{"src":"https://static.coindesk.com/wp-content/uploads/2020/08/cardanochart-1200x762.jpg","width":1200,"height":762}}}},{"type":"copy","content":"\u003cp\u003eGeorge Clayton, managing partner of Cryptanalysis Capital, is looking forward to watching Cardano in the DeFi race, as smart contract capabilities for building decentralized applications on the platform \u003ca href=\"https://twitter.com/IOHK_Charles/status/1289981387789832194\"\u003eare expected to launch later in 2020\u003c/a\u003e. “The transition to PoS mainnet is complete but stake pools do not start producing blocks until Aug. 8,” he said. “Very interested to see what happens with Cardano; that\u0026#8217;s a big moment for the protocol.”\u0026nbsp;\u003c/p\u003e\n"},{"type":"heading","data":{"level":2,"content":"Other markets","uppercase":false}},{"type":"copy","content":"\u003cp\u003eDigital assets on the \u003ca href=\"https://www.coindesk.com/coindesk20\"\u003eCoinDesk 20\u003c/a\u003e are mostly in the red Friday. One notable winner as of 20:00 UTC (4:00 p.m. ET):\u0026nbsp;\u003c/p\u003e\n"},{"type":"list","data":{"style":"unordered","items":["\u003ca href=\"/price/chainlink\"\u003echainlink\u003c/a\u003e (LINK) + 0.62%"]}},{"type":"copy","content":"\u003cp\u003e\u003cstrong\u003e\u003cem\u003eRead More: \u003c/em\u003e\u003c/strong\u003e\u003ca href=\"https://www.coindesk.com/first-mover-kyber-ceo-predicts-2020-transactions-at-3b-as-defi-token-soars\"\u003e\u003cstrong\u003e\u003cem\u003eKyber CEO Predicts 2020 Transactions at $3B as DeFi Token Soars\u003c/em\u003e\u003c/strong\u003e\u003c/a\u003e\u003c/p\u003e\n"},{"type":"copy","content":"\u003cp\u003eNotable losers as of 20:00 UTC (4:00 p.m. ET):\u0026nbsp;\u003c/p\u003e\n"},{"type":"list","data":{"style":"unordered","items":["\u003ca href=\"/price/zcash\"\u003ezcash\u003c/a\u003e (ZEC) - 8.1%","\u003ca href=\"/price/tezos\"\u003etezos\u003c/a\u003e (XTZ) - 7.4%","\u003ca href=\"/price/dash\"\u003edash\u003c/a\u003e (DASH) - 7.4%"]}},{"type":"copy","content":"\u003cp\u003e\u003cstrong\u003e\u003cem\u003eRead More: \u003c/em\u003e\u003c/strong\u003e\u003ca href=\"https://www.coindesk.com/ethereum-classic-attacker-successfully-double-spends-1-68m-in-second-attack-report\"\u003e\u003cstrong\u003e\u003cem\u003eEthereum Classic Attacker Double-Spends $1.68M in Second Attack\u003c/em\u003e\u003c/strong\u003e\u003c/a\u003e\u003c/p\u003e\n"},{"type":"copy","content":"\u003cp\u003eEquities:\u003c/p\u003e\n"},{"type":"list","data":{"style":"unordered","items":["In Asia, the Nikkei 225 closed in the red 0.39% as \u003ca href=\"https://www.gulftoday.ae/business/2020/08/07/tokyo-shares-falter-on-weak-asia-markets-profit-taking\"\u003eweak corporate earnings spurred profit taking ahead of a three-day weekend in Japan\u003c/a\u003e.","In Europe, the FTSE 100 ended the day flat, in the green 0.09%. as \u003ca href=\"https://www.proactiveinvestors.co.uk/companies/news/926093/ftse-100-index-closes-slightly-ahead-but-wall-street-shares-lower-despite-jobs-report-926093.html\"\u003eU.S. tensions with China countered better-than-expected job numbers\u003c/a\u003e.","In the United States, the S\u0026amp;P 500 lost 0.40% as \u003ca href=\"https://www.cnbc.com/2020/08/06/stock-market-futures-open-to-close-news.html\"\u003eprogress slows on negotiations for fresh coronavirus economic stimulus\u003c/a\u003e."]}},{"type":"cop

Related Coins