Market Wrap: Bitcoin Regains $10.6K; High-Balance Ether Addresses Decline

Oct 7, 2020 at 20:34 UTC.Bitcoin is recovering from Tuesday's drop while there is a decrease in large-balance ether addresses.

BTC above its 10-day moving average but below the 50-day, a sideways signal for market technicians.

"The crypto markets are still very highly correlated to traditional markets and the broader economy as a whole," said Michael Rabkin, head of institutional sales for cryptocurrency market maker DV Chain.

"We believe that any time markets tick up or tick down this is exaggerated in crypto. The correlation is still very high." Bitcoin may be operating in tandem with traditional markets as of late, but its returns over the past month have been beating global stock indexes.

In the options market, traders have over 36,000 BTC in open interest set to expire by Oct. 30.Based on the probability of those options, bitcoin has a 68% chance of closing out the month over $10,000, a 53% chance of being over $10,500 and just a 37% chance to hit $11,000.

DV Chain's Rabkin noted that as more sophisticated investors jump into crypto, it may ebb and flow with the traditional market more than ever before.

"As bitcoin is becoming a new asset class for institutional market participants, its sensitivity to macro events will rise over time."

The second-largest cryptocurrency by market capitalization, ether, was flat Wednesday, trading around $341 and in the red 0.03% in 24 hours as of 20:00 UTC.The number of Ethereum addresses with a balance greater than or equal 1,000 ETH is at a three-year low.

As of Tuesday, Ethereum addresses with a balance greater than or equal 1,000 ETH was at 7,220 addresses.

"With billions flowing into DeFi, major ETH holders might be getting in on the action by participating in automated market making pools or staking ERC-20 tokens, thereby reducing ETH balances."