Market Cover: Bitcoin drops to $ 30.8K as investors plow BTC back into DeFi

Bitcoin has been in a range of $ 30,000 – $ 35,000 for almost a week, while some market participants are looking for eaters and other cryptocurrencies to trade during the observable boredom.

Bitcoin’s price fell to $ 30,875 on Tuesday and dropped to around 15:00 UTC (10:00 ET) before returning and changing hands around $ 32,003.

The decline came after the world’s oldest cryptocurrency reached nearly $ 35,000 on Monday, said Constantine Kogan, a partner at investment firm Wave Financial. He is also clumsy under the current market conditions. “I expect a decrease to $ 29,000,” he told CoinDesk. “Apparently some of the containers and whales sold their positions.”

Kogan noted positive news this week that the bitcoin market has not moved much. ‘“Marathon has invested $ 150 million in bitcoin and aims to become the largest miner in the world,” he said. “Crypto funds are collecting records, but at the same time there has been no growth.”

Read more: Crypto Miner Marathon Patent Group buys $ 150 million in Bitcoin

The last time bitcoin was over $ 35,000 was almost a week ago on January 20, according to CoinDesk 20 data.

“Many crypto residents and macro traders are expecting a decline of ~ 30% from the everyday high of two weeks ago,” noted Brian Mosoff, CEO of investment firm Ether Capital. “Now that it appears to have stabilized in the low $ 30,000s, traders see this as an opportunity to help and take the lead from the next step.”

Tuesday seemed like a reasonably priced day for long bitcoin leverage, as funding rates fell from Monday. This was a change in the excitement of the past 90 days, when margins in some places could rise by more than 0.2% during the crazy price rise to the January 10 high of $ 40,986.

Some use bitcoin’s valuation compared to other cryptocurrencies as a sign of what is ahead in the market.

“I have a strong sentiment towards ether as a leading indicator for an upcoming alt season,” Global Digital Asset chief operating officer Zachary Friedman told CoinDesk, referring to market conditions that are “alts” or alternative crypto benefits currencies.

Friedman pointed out that bitcoin’s dominance, its share as a percentage of total crypto-market capitalization, is declining. Indeed, since the beginning of 2021, bitcoin dominance has dropped by more than 10%.

“BTC dominance declines as profits are redistributed and the ETH, which is close to its highest point, provides an immediate opportunity for new market entrants to diversify their investments and seek additional returns,” Friedman said.

Ether (ETH), the second-largest cryptocurrency by market capitalization, traded at $ 1,340 on Tuesday, slipping 2.2% within 21 hours from 21:00 UTC (16:00 ET).

Read more: Big Guns Back $ 10 Million Investment in DeFi’s dYdX

On Monday, the amount of bitcoin held in decentralized financing, or DeFi, crossed more than 40,000 BTC for the first time since mid-December. At the time of printing, 42,604 BTC were “locked up” in DeFi, which investors are doing to obtain a “return” in exchange for liquidity.

Mosoff of Ether Capital says the return to DeFi is merely investors chasing juicier opportunities as the market for bitcoin turns out to be.

Holders expect ‘alt season’ and want to use their bitcoin to take advantage of extra exposure to other opportunities in the crypto space, whether it’s DeFi tokens or other layer 1s, such as Ethereum, Polkadot, Solana, NEAR, etc., “Mosoff said. “Many of these projects currently have a lot of momentum and are well positioned for investor participation.”

Digital assets on the CoinDesk 20 are mostly red on Tuesday. Notable winners from 21:00 UTC (16:00 ET):

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