Cryptocurrency Market News: Bitcoin and gold correlation hit record high as billions wiped off in fresh crypto selloffs

Here is what you need to know on Wednesday, August 12, 2020.

Markets:

BTC/USD is exploring levels closer to $11,000 following a consistent downtrend from highs traded on Monday at $12,084. An intraday low has been traded at $11,223 but BTC/USD is exchanging hands at $11,289. As discussed on Tuesday, Bitcoin suffered more declines due to the formation of a rising triangle pattern. Support at $11,100 has been confirmed but bearish forces are still giving buyers a hard time sustaining the price above $11,200.

ETH/USD is also dealing with increased selling activities. From an opening value of $378, Ether is exchanging hands at $371. Support has been established at $370 and glancing upwards, ETH/USD will encounter resistance at $380 in the push for gains eyeing $400.

XRP/USD, on the other hand, has lost 2.23% of its value on the day to trade at $0.2762. The fourth-largest cryptocurrency continues to explore the rabbit hole considering the rejection it suffered at $0.2350 in the first week of August.

The majority of cryptoassets in the market are in the red accept for some selected altcoins that are ignoring the bearish wave to post gains. Over the last 24 hours, DeFi projects have performed incredibly well. For instance, Maker is up 13.60%, Aave up 11.91% and Compound up 24.40%.

Chart Of The Day: BTC/USD 4-hour

Market:

Bitcoin price has been trending lower this week but its correlation to the precious metal, gold has surged massively to hit all-time highs. The correlation is measured between BTC and XAU over a monthly average. The latest metric shows that the rate has hit a record-breaking high of 70% even overdoing the peaks seen in the Q4 2018 and the Q2 2019 as per the data shared by analysis platform Skew Analytics.

Bitcoin has always been presented as a store of value that investors can use to hedge against falling prices in the traditional markets in times of pandemics and crises such as the COVID-19. As central banks hasten the printing of money in a bid to cushion the economies from the shocks of the pandemic, investors are moving their funds to alternative assets such as gold and Bitcoin. Bitcoin has already spiked to a yearly high of $12,145 while gold hit the critical mark of $2,000 per ounce.

Industry:

The DeFi magic continues to rock the cryptocurrency space. As mentioned above, tokens in the ecosystem are still in the green amid broad-based declines. Serum has become the latest DeFi token to hit the moon with gains of over 1,500% in less than 24 hours.

The token is connected to a custodial DEX that was launch in the market on August 11. The Serum Project is a collaboration between the centralized trading platforms FTX and Solana that guarantees user low fee, high-speed and interoperable smart contracts blockchain.