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Bitcoin price collapses after week’s stock rally

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Markets a day is an exclusive summary of the news moving the bitcoin economy. It is emailed in advance to a list of subscribers and then published every Monday on CryptoNews. If you want to get the information in advance,subscribe to the list here.


Traditional equities started the week with a rally, while bitcoin (BTC) remained within the sideways trend it has been in for more than a month.. The stock’s appreciation came after the news of the financial results of major U.S. banks, which were better than expected.

For the week, the S&P 500 index appreciated 4.7 percent while the Dow Jones rose 4.9 percent. During the same period, the Nasdaq Technology Index rose 5.2%, the best week since June for all three indexes. On Tuesday, Oct. 18, Bitcoin posted a 2 percent return reaching $19,700, but then hovered around $19,000 until ending at US$19,202.at the time of writing, as can be seen in the CryptoNews price calculator.

Bitcoin on S&P500 October
Contrast between the price of bitcoin and the S&P 500 index as of Monday, October 17. Source: TradingView.

Bitcoin entered its fifth week of movement between $18,200 and $20,500, moving between $18,200 and $20,500. LOW VALUES volatility values, which were detailed in an analysis published by this journal. According to historical data, at a prolonged period of limited price movements is followed by a period of increased volatility.So says a market report by Glassnode, commented on by CryptoNews on Monday the 17th.

BTC saved for more than a year marks a milestone

This week saw a very impressive event for a bearish season in relation to BTC held by savers for more than a year. Within this segment, different categories of savers are in the black.except those who hold BTC for one or two years, who have unrealized losses.

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The fact that they hold their positions would show a strong belief in bitcoin. Per Glassnode, the total number of savers in this cohort is considered long-term.classified as such by the analysis company because they have more than 5 months with their BTC.

Less bitcoin in the hands of whales, but fish hoard

Within this pattern of accumulation by long-term savers, something extraordinary happens. Whales (those who own more than 1,000 BTC) and small savers (between 0.01 and 10 BTC) show very distinct patterns of behavior. One of these groups is selling BTC and another is hoarding it.as detailed in a CryptoNews note.

Percentage of BTC supply held by fish and whales. Source: glassnode.

In the graph, BTCs controlled by fish (in red) are contrasted with those controlled by whales (in blue). The pink shaded area shows the evolution of the combined market capitalization of Tether Stable Coin (USDT) and USD Coin (USDC).

Featured chart of the week.

The Major stable currencies are currencies pegged to the dollar. The U.S. dollar and the current bearish season have dropped their market capitalization from $181 billion in April 2022 to the current $147 billion. The chart below shows the evolution of the major stablecoins, led by Tether (USDT), USD Coin (USDC) and Binance’s stablecoin (BUSD).

Dominance of stablecoins
Dominance of major stable currencies. Source: Glassnode.

USDT’s market share declined from 88% to 48% from 2020, at the expense of the growth of the other two leaders. USDC has tripled its market share from 10% to 32% since 2020, while BUSD has increased its market share by 30 times over the same period. BUSD went from a dominant position of 0.5% in 2020 to 15%. Among the top 3 stablecoins Accumulate 95% market share.

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A particular use of bitcoin is growing in Mexico.

A Chainaysis study of bitcoin adoption, commented on by CryptoNews, highlights its use in Latin America, especially in Mexico. This country drives an important aspect of adoption.for a very particular purpose with a market exceeding $150 billion annually.

In addition to Mexico, another country where the specific use of bitcoin has increased is El Salvador, thanks to the spread of the Chivo bitcoin wallet. This was promoted by the country’s government, following the declaration of bitcoin as a legal tender currency.

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