Bitcoin fell 15% in a week – Last week was not a positive one for the most popular cryptocurrency. Bitcoin dropped from $ 8600 to $ 6900 during the day on Friday. Currently, BTC is struggling to keep around $ 7,000, but the outlook is not optimistic.
Some analysts claim the price crash is due to the PlusToken scammer, which sold over 7,000 BTC on the Huobi exchange. Others justify it by China’s threatening statements regarding cryptocurrencies.
Whatever the reason, most analysts believe that the only chance for a positive evolution of Bitcoin is to bring the price back to $ 7,300. Otherwise, there is a possibility that its value will drop to $ 6,000 in the short term.
BTC volatility stimulates Bakkt futures volumes
Bakkt’s Bitcoin futures trading platform has set a new volume record on the day Bitcoin dropped from $ 8,000 to $ 7,000. On November 23, volumes on the platform reached 2728 contracts worth about $ 20.3 million.
Bakkt started at a slow pace. But two months after its launch, the platform has proven to be a tool to offset Bitcoin price fluctuations. So far, Bakkt activity has grown in the more volatile and dramatic days for the BTC and there is a clear growth trend.
The development of decentralized finance could support the ETH price
The strong growth of the decentralized finance market (DeFi) could be a fundamental factor supporting the recovery of ETH in the medium to long term. DeFi uses smart contracts on a decentralized blockchain network. The system facilitates financial services that were previously available only through third-party service providers and traditional banks. Most of these services are currently based on the Ethereum protocol.
According to crypto investor Anton Pagi, the adoption of DeFi has increased significantly over the past 11 months. The Ethereum cryptocurrencies used as collateral exceeded 2.5 million.
However, the ETH price has dropped from $ 190 to $ 140 in the last month, and the situation does not seem to be remedying in the near future.
Following the implementation of the Istanbul update at the beginning of next year, it is possible that the activity supported by DeFi will also support an increase in the ETH price.
Fidelity expects to sign the first exchange by the end of the year
Fidelity Digital Assets (FDAS) expects to sign its first exchage by the end of the year, according to President Tom Jessop. The newly launched brokerage service currently manages OTC office cryptocurrencies for the most part. They generally handle high-value transactions, while exchanges generally have many customers trading small volumes.
Fidelity is proud that it has been able to establish relationships with many liquidity providers, which gives it scope for expansion.
In addition, this month the company obtained permission to operate in New York State, which gives it more credibility.
“We were surprised throughout the year on the level of interest and the amount of work that people did to understand this asset class. There is a lot of interest from institutional investors for cryptocurrencies ”.