Bitcoin was risingalong with gold and U.S. stock futuresearly Friday as traders reacted to Federal Reserve Chair Jerome Powells plan to let inflation run hot in coming years as the economy heals from the coronavirus-induced recession.
The largest cryptocurrency, seen by some investors as a hedge against inflation, changed hands around $11,451, staying in the range between $10,900 and $12,400, where it has been stuck since late July.
In Asian markets, the Japanese yenjumped on haven buyingafter Prime Minister Shinzo Abe, who has pursued inflation-boosting policies, said he would resign due to an illness.
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Getting in and out of a large bitcoin trade on cryptocurrency exchanges like Binance or BitMEX isnt costing as much as it used to. That might be a healthy sign that digital-asset markets are maturing.
At Binance, the worlds biggest cryptocurrency exchange by trading volume, the daily average spread between buy and sell orders on bitcoin futures for $10 million quote size declined to a record low of 0.25% on Monday, according to data provided by research firmSkew. The spread, which typically narrows as an exchanges order book depth increases,spiked to 7.95% during the March crash but dropped shortly after. It has been in a declining trend ever since.
The so-called bid/offer spread is the difference between the best available price to sell or buy something in a market. It essentially represents liquidity the degree to which an asset can be quickly bought or sold on a marketplace at stable prices.
A narrower spread implies a deeper market where there is sufficient volume of open orders so buyers and sellers can execute a trade without causing a big change in the price. Thats in contrast to a weak liquidity environment, where large orders tend to move the price, increasing the cost of executing trades, and deterring traders especially institutions and, in turn, causing a further decline in liquidity.
Binance and BitMEX offering record low spread on a $10 million quote is a healthy market development, according to Denis Vinokourov, head of research at London-based crypto prime broker Bequant.
The tighter the spread, the deeper the order book, the more the market is able to withstand shocks [price volatility], Vinokourov told CoinDesk in a Telegram chat.
Bitcoin and gold are reversing losses seen on Thursday following Federal Reserves (Fed) announcement of a more relaxed approach to fighting inflation.
Polkadot (DOT):Withprotocol of protocols weeks away from release of bridge to Ethereum blockchain,tokens market cap tops $5 billion, now in top 10 of all cryptocurrencies.
The latest on the economy and traditional finance
Selected commentary on Fed Chair Jerome PowellsJackson Hole speech Thursday:
Tweet of the day
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- Bitcoin Rally Attracts Wave Of Private Investment As Leading Blockchain VC Raises New $120 Million Fund - Forbes - December 26th, 2020
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- The price of bitcoin is 'driven by manipulation': Nouriel Roubini - Yahoo Finance - December 26th, 2020
- Bitcoin To 27K Projection? - Yahoo Finance - December 26th, 2020
- Bitcoin And Crypto Trading Tips From Poker World Champion Annie Duke - Forbes - December 26th, 2020
- Mark Zuckerberg has another answer to Bitcoin - The Japan Times - December 26th, 2020
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- BitGo Is Bringing DeFi-Friendly Wrapped Bitcoin to the Tron Blockchain - CoinDesk - Coindesk - September 25th, 2020
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- Profit taking Bitcoin miners wont stop the next bull run: On-chain analyst - Cointelegraph - September 25th, 2020
- The Winklevosses have launched their bitcoin exchange in the UK - Wired.co.uk - September 25th, 2020
- Christies to sell its first non-fungible-token as part of epic Bitcoin artwork - Cointelegraph - September 25th, 2020
- Bitcoin-related ads are now streaming on Disney+ in some regions thanks to Zebpay - Cointelegraph - September 25th, 2020
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- XSwap Started Yield Farming, The Highest APY Reaches 70,000% | Press release - Bitcoin News - September 25th, 2020
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- Its a bull trap! 3 key metrics forecast Bitcoin price rejection at $11K - Cointelegraph - September 18th, 2020
- Bit Digital, Inc. Announced Officially to Cooperate with the World's Leading Bitcoin Colocation Partner In US - PRNewswire - September 18th, 2020
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- A Radical New Crypto Just Blew Past The Bitcoin Price All-Time HighUp A Shocking 3,500% In Just One Month - Forbes - September 5th, 2020
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- Private Capital And Institutions Are Piling Into Bitcoin And Other Digital Assets But You Need To Know Where To Look - Forbes - September 5th, 2020
- Ethereum Soars 10% Overnight Implications For Bitcoin - Forbes - September 5th, 2020
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- Bitcoin Will Break Out This Year, Says Devere CEO | News - Bitcoin News - September 5th, 2020
- Tax Implications For Donations Of Bitcoin - Forbes - September 5th, 2020
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- Research: New Malware Employs Tor and Bittorrent To Steal Bitcoin and Ether | Security - Bitcoin News - September 5th, 2020
- Will Bitcoin Dump If Stocks Have Another COVID-19-Scale Crash? - Forbes - September 5th, 2020
- Elon Musk Confirms Serious Russian Bitcoin Ransomware Attack On Tesla, Foiled By The FBI - Forbes - September 5th, 2020
- 3rd Bitcoin SV Hackathon Finalists announced to compete for USD $100,000 - PRNewswire - September 5th, 2020
- Max Keiser thinks Warren Buffett will move to Bitcoin soon - Cointelegraph - September 5th, 2020
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- Warren Buffett Shifts Funds From US Amid Inflation Fears, Bitcoin's New All-Time High Expected | News - Bitcoin News - September 5th, 2020
- No interim injunction over bitcoin account where damages would be adequate - Lexology - September 5th, 2020
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- China Is No Threat To Bitcoin, Promises Foundry CEO After $100 Million Bitcoin Mining Bet - Forbes - September 4th, 2020
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- SEC Redefines Accredited Investors to Include Those With Proven Knowledge | Regulation - Bitcoin News - August 31st, 2020
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- Digital Dollar To Be In Competition With Bitcoin - Forbes - August 28th, 2020
- Fidelity Is A 1000 Pound Bitcoin Gorilla In The Making - Forbes - August 28th, 2020
- Tyler Winklevoss says US Fed is the biggest booster of Bitcoin price - Cointelegraph - August 28th, 2020
- New Binance Exclusive Reveals The Bitcoin Exchange Might Have A Serious Problem - Forbes - August 28th, 2020
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