Market Wrap: Bitcoin Rebounds to $10.5K; Stablecoin Market Cap 'Goes Parabolic'

BTC above its 10-day moving average but below the 50-day, a sideways signal for market technicians.

Despite the continuous stream of negative news this past week, the crypto markets have remained resilient, according to Zachary Friedman, chief operating officer of brokerage Global Digital Assets.

"If we look back, we have seen a hack of Kucoin, a major BitMEX lawsuit and even trouble in the traditional markets through the announcement that Trump contracted COVID-19," Friedman said.

"Historically, these three collective events would have sent markets reeling. This shows that the market is increasingly filled with more bullish investors [who] believe in the fundamentals."

Volatility in bitcoin is positive news for options buyers, and that market has 34,100 BTC in bets placed for expiration on Oct. 30.The options market for October expiration provides some probabilities for bitcoin's future price, as traders see a 63% chance of bitcoin over $10,000, a 50% chance over $10,500 and a 36% chance of $11,000 per 1 BTC."It's a tough market at the moment, up one minute and down the next," said Rupert Douglas, head of institutional sales for crypto brokerage Koine.

"I still think there are risks to the downside. Markets don't like uncertainty and we've sure got that until early November."

Ether, the second-largest cryptocurrency by market capitalization, was down Friday trading around $344 and slipping 2% in 24 hours as of 20:00 UTC.The total market capitalization of stablecoins has grown from $2.6 billion at the start of 2019 to $20 billion by late September.

Tether, at $16 billion, leads the way, with U.S. dollar coin in second at $2.5 billion followed by TrueUSD with a $507 million market cap.

A yield farmer who chooses to go by the handle devops199fan believes stablecoins provide an important role as an increasing market for stable assets strengthen the decentralized finance, or DeFi, ecosystem.

"The stablecoin market cap is starting to go parabolic," said devops199fan.