Bitcoin's Bullish Surge: Sentiment Soars as DeFi Embraces the Crypto Giant

Bitcoin is making gains unseen since early September, rising to trade around $10,778, with the amount of BTC locked in DeFi hitting six figures for the first time. Currently, 101,719 BTC is deployed in DeFi, a sign of increasingHODLing and willingness to allocate to crypto assets. Technical indicators, such as Bitcoin's position above its 10-day and 50-day moving averages and a rising daily average hashrate, provide further bullish signals.

Bitcoin's Bullish Ascent: Market Sentiment Soars as DeFi Adoption Burgeons

Bitcoin (BTC) is experiencing a resurgence, reaching heights unseen since early September. As of press time, BTC is trading at approximately $10,778, marking a 0.70% gain over the past 24 hours. This surge has propelled Bitcoin above its 10-day and 50-day moving averages, signaling a bullish trend for market technicians.

David Lifchitz, chief investment officer of quant firm ExoAlpha, expresses optimism about Bitcoin's trajectory. He notes that BTC is approaching a breakout range of $10,100 to $10,500 and could potentially reach $11,000 if it sustains its upward momentum.

Lifchitz also highlights fundamental factors contributing to Bitcoin's bullish run. The daily average hashrate on the Bitcoin network has reached a record-breaking 151 million terahashes per second, indicating increased mining activity and network security. Moreover, the upcoming difficulty adjustment scheduled for September 19 is expected to set a new all-time high.

Denis Vinokourov, head of research for brokerage Bequant, points to positive developments in the decentralized finance (DeFi) space. MicroStrategy's acquisition of 16,796 bitcoins, coupled with increased capital flowing into DeFi projects, is fueling sentiment towards Bitcoin.

Guy Hirsch, U.S. managing director for multi-asset brokerage eToro, observes that over 31% of Bitcoin's supply has been inactive for at least three years, reaching its highest point since late 2017. Hirsch attributes this inactivity, in part, to the growing adoption of DeFi, which necessitates the movement of BTC on-chain.

DeFi's meteoric rise is evident in the amount of Bitcoin locked in its protocols. Aggregator DeFi Pulse reports that over 101,719 BTC is currently deployed in DeFi, a milestone achievement that has helped propel the total value locked in DeFi to approximately $10 billion.

Henrik Kugelberg, a Sweden-based bitcoin over-the-counter trader, anticipates significant further growth in DeFi's adoption of BTC. He believes that the recent influx of Bitcoin into DeFi is merely the beginning of a larger trend, as investors recognize the potential of decentralized financial platforms.

While Bitcoin dominates the cryptocurrency landscape, other digital assets in the market have experienced mixed results. Ether (ETH), the second-largest cryptocurrency by market capitalization, declined by 2.9%, trading around $365. Notable gainers include Ethereum Classic (ETC) with a 6.2% increase, Bitcoin Cash (BCH) with a 3.9% rise, and Monero (XMR) with a 0.50% gain.

Equities markets globally have also experienced fluctuations. In Asia, the Nikkei 225 closed down 0.44%, while the FTSE 100 in Europe ended the day up 1.32%. In the United States, the S&P 500 climbed 0.40%, driven by positive gains in sectors such as technology, materials, industrials, and energy.

Commodities have witnessed mixed performance. Oil prices rose by 2.5%, with the price per barrel of West Texas Intermediate crude reaching $38.25. Gold, on the other hand, declined by 0.21%, trading at $1,953.

In the bond market, U.S. Treasury bond yields climbed on Tuesday, with the 30-year bond experiencing the most significant increase at 1%.

Overall, Bitcoin's impressive performance, combined with the growing adoption of DeFi and positive macroeconomic indicators, suggests that the cryptocurrency market is poised for continued optimism and sustained growth.