Bitcoin and gold are not doing well with increased market volatility ahead of the US election. Eyes turned to silver and platinum.
Markets are struggling to recover from the strong correction that hit the tech sector in early September. On September 3, the Nasdaq collapsed immediately by 5%, pulling along with it, including bitcoin, which managed to break down the level of $ 10,000. Only gold held its positions. However, after the last meeting of the US Federal Reserve System, it also came under pressure.
No matter how much bitcoin is called "digital gold", it will always find an opportunity to refute this thesis. The crash in early September is a typical example where bitcoin was not following the precious metal, but the American stock market. The collapse was stopped at the level of $ 9850 - here the bears ran out of power.
The "bulls", however, also have little strength. Since then, the price has risen to $ 11,000, but has not been able to move higher.
DeFi technology can wrestle Bitcoin out of correlations with the mainstream market (which is clearly going through a difficult period). “The popularity of ETH-protocols for gaining passive profit from holding bitcoin may become the next price trend for the first cryptocurrency,” believes Alexander Kuptsikevich, a leading analyst at FxPro. “DeFi-hype is extremely unstable, like any events in the crypto sector, nevertheless, regulators have not yet expressed a tough stance on cloning the financial sector into the crypto sphere, there is reason to believe that the DeFi bubble may inflate for some time. The level of $ 12,000 is quite within the power of bitcoin, but this cannot be predicted with an accuracy of days. "
It is also interesting that in September the volumes of funds entered into the systems were adjusted. At its peak in late August, DeFi was "frozen" $ 9.5 billion, but amid the collapse in prices, investors rushed to withdraw money. On September 3-5, volumes fell by 30%. Now the growth has resumed: $ 8.8 billion has already been "frozen" in the system. It is important that this is the first powerful correction in this market. To DeFi's credit, it has survived it without consequences so far.