Bitcoin and Dogecoin decline amid capital rotation in XRP and DeFi tokens

Bitcoin posted a 20 percent rally on Friday after the cryptocurrency was mentioned on Twitter by Elon Musk. However, the effect was short-lived. Over the past 24 hours, the price has decreased by 9% and is about $ 34,000 at the time of publication.

In addition to Musk’s comments, market participants see another reason for the tangible rise in the bitcoin rate on Friday – the expiration of a record volume of option contracts worth about $ 3.2 billion. Luuk Strigers, director of Deribit exchange.

Most, however, link recent events to the Tesla founder. “This is the most volatile expiration in history, thanks to the Musk Bomb,” said Richard Rosenblum, co-founder of GSR trading firm.

Data from crypto brokerage firm FalconX also indicates that the rally was driven by retail investors, not hedge funds. During this time, the volume of hedge fund transactions decreased by 45%, while retail investors increased by more than 1,100%. The firm believes that traders from Reddit played an important role in this.

Dogecoin is another cryptocurrency of choice for retail investors to buy on Friday – after rising 1,000% today, it is down 40% and is trading around $ 0.035, still double the previous all-time high.

Most of the top 10 assets on the market, including Ethereum, Polkadot, Chainlink and Litecoin, show negative dynamics. The exceptions are XRP and Stellar. The price of the former rose by 22% and reached $ 0.35. There is also a renewed trend towards capital rotation in DeFi projects. Thus, Uniswap grew by 15% per day, Compound – by 32%, Sushi – by 19%, THORChain – by 23%, 1inch – by 43%, Alpha Finance – by 35%, and Opium – by 137%

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