Market Wrap: Bitcoin Holds at $10.7K; Uniswap Volume Drops

Sep 29, 2020 at 20:28 UTC.As bitcoin struggles to hold the $10,700 price range Uniswap's September volume set records but appears to be declining.

Bitcoin trading around $10,757 as of 20:00 UTC. Slipping 1% over the previous 24 hours.

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

Katie Stockton, analyst for Fairlead Strategies, says cryptocurrencies like bitcoin are affected by traditional markets, particularly equities, which are considered "Risk-off" or liquid assets that can easily be sold during a market slide.

"Bitcoin has been attuned to the day-to-day moves in risk assets, but the end result of the intraday volatility is a consolidation phase on the chart," said Stockton.

Several stakeholders in the crypto market see a lack of yields coming from traditional markets as a sign cryptocurrency has a place in uncertain times.

"We are moving into a period of stagflation - stagnant growth and inflation - which creates a steepening of yield curves in the fixed income world," said Chris Thomas, head of digital assets for Swissquote Bank.Indeed, U.S. Treasury yields have dropped in 2020 - the two-year maturity is at its lowest yield in over 10 years.

Ether, the second-largest cryptocurrency by market capitalization, was down Tuesday trading around $356 and slipping 1.5% in 24 hours as of 20:00 UTC.Uniswap has had a stellar September, with the decentralized exchange, or DEX, having a record $953 million in volume on the very first day of the month.

Volume doesn't mean everything for a DEX: Mosoff points to Uniswap's Tuesday record-high of $2.29 billion in liquidity, which is the depth, or availability, of assets traded on the DEX, as a metric traders should also consider.

"Liquidity has just reached a new all-time high on Uniswap - this means that asset pricing is becoming more competitive and because of this it may capture the majority of trading volume once speculative activity abates," Mosoff added.