Money flows out of Bitcoin into DeFi altcoins like Avalanche, Curve, and Crypto.com
- Analysts argue that mid-November is about receding excesses in Dogecoin and Shiba Inu tokens.
- Traders have reacted negatively to Mt.Gox recovery news, and Bitcoin is trading at a critical level.
- Avalanche, Curve DAO and Crypto.com tokens have posted double-digit gains over the past 24 hours.
Capital is flowing out of Bitcoin and into DeFi projects Avalanche, Crypto.com and Curve DAO. The mid-November cryptocurrency market is focused on purging the speculative excess in dog-themed cryptocurrencies Dogecoin and Shiba Inu.
Bloomberg strategist notes that the crypto market is shedding speculative excess
Bitcoin price eyes a new critical level as it recovers from a drop below $60,000. The news of Mt.Gox’s recovery of lost Bitcoin to its creditors had a negative impact on BTC price.
The fear and greed index is considered an indicator of traders’ sentiment towards Bitcoin. The index is currently neutral. It slipped from “greed” to “neutral” as traders lost interest in Bitcoin.
The last time when Bitcoin hit a new all-time high, the asset’s price hit bottom, and analysts noted extreme fear on the fear and greed index. @rektcapital, a pseudonymous cryptocurrency analyst, expects the sentiment to shift to fear before the BTC price trend reverses.
Last time #BTC saw Extremely Fearful levels on the Fear & Greed Index?
— Rekt Capital (@rektcapital) November 17, 2021
21st of September (blue arrow)
This is when $BTC actually bottomed before enjoying a run to its new All Time Highs
Currently, sentiment is Neutral (52) but Fear is what precedes reversals#Crypto #Bitcoin pic.twitter.com/rOf6IPXUBx
Mike McGlone, a senior commodity strategist, commented on the crypto market in mid-November.
#Cryptos Going to the Dogs? #MemeCoins and Speculative Excesses -
— Mike McGlone (@mikemcglone11) November 17, 2021
The crypto market in mid-November is all about support of $60,000 for #Bitcoin and $4,000 for #Ethereum, along with the proliferation and legitimization of crypto dollars and the purging of speculative excesses. pic.twitter.com/gMSJo3kQ8Q
DeFi tokens with relatively high total value locked, Avalanche (AVAX), Crypto.com (CRO) and Curve DAO (CRV), have posted double-digit gains over the past 24 hours.
Amidst a wider crash in the cryptocurrency market, AVAX price is climbing higher. The DeFi token hit a new all-time high at $104.33, posting over 54% gains over the past two weeks.
Earlier today, Crypto.com announced that a multi-purpose arena in downtown Los Angeles would be renamed. Staples Center will now be known as Crypto.com ARENA for the next 20 years due to the partnership with the LA Kings and Los Angeles Lakers.
The DeFi tokens have offered one of the highest risk-adjusted returns over the past 24 hours. @Rager, a pseudonymous cryptocurrency analyst, believes that as long as Bitcoin and Ethereum don’t suffer a price drop, Avalanche price is likely to continue to climb.
As long as BTC and ETH don't dump heavy again, we can certainly see $AVAX continue to grind up
— Rager (@Rager) November 16, 2021
Will continue to keep an eye on this uptrend but hoping we continue to see capital funnel into this network bringing more value to AVAX itself https://t.co/rfWGFf5aeC pic.twitter.com/30KnSkcwXx
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
