Chainlink and Aave shot up to a new all-time high as Bitcoin bullishers struggle to keep the price of BTC above $32,000.
The Bitcoin price (BTC) opened the weekend trapped in the range of $33,500 to $32,000, but as of this writing the cryptoactive is struggling to stay above $32,000.
Some analysts have warned that the recent loss of price momentum may be a sign of “institutional fatigue”, as selling pressure from Asia has increased since January 19th.
Despite Bitcoin’s current downward trend, some institutional investors are sticking to their prediction that BTC’s price will reach USD 100,000 before the end of 2021. This suggests that institutions are encouraged by increasing investor sentiment and new requests for a Bitcoin ETF.
While Bitcoin still faces resistance near the USD 33,000 level, on-chain analyst Willy Woo sees a potentially positive development for Bitcoin Compass. Woo said that Bitcoin’s Spent Output Profit Ratio (SOPR), a metric that shows the profit ratio of BTC by dividing the price sold by the price paid, had “a touchdown.
According to Woo there was a:
“Complete on-chain restart of the SOPR. Currencies that move among investors on an hourly basis (24-hour moving average) no longer carry an average profit. To bring the SOPR down, investors would have to be willing to sell at a loss.”
Woo also suggested that investors are less likely to sell at a loss, an early sign that Bitcoin may be near a floor mark.
DeFi altcoins and tokens skyrocketed
DeFi tokens and altcoins continued to forge their own path as Bitcoin sought support. Polkadot (DOT), AAVE, Curve DAO Token (CRV) and Sushiswap (SUSHI) were up 5% to 7%.
The increase in the price of many tokens related to the DeFi ecosystem has largely been the result of increased activity in decentralized exchanges (DEX). Data from Dune Analytics shows that monthly DEX volumes have increased since July 2020 and that the total value locked in DeFi is currently $23.89 billion.
Chainlink (LINK) continued its strong rebound, setting a new all-time high at USD 25.50 and outperforming Litecoin (LTC) in terms of total market capitalization to become the seventh largest project listed on CoinMarketap. The price of Aave also reached a new all-time high of USD 229.39 and the total blocked value on the platform is USD 3.44 billion.
The overall capitalization of the crypto market is currently $936.8 billion and the Bitcoin domain rate is 63.5%.