{"id":174537,"date":"2020-10-23T09:00:19","date_gmt":"2020-10-23T08:00:19","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=174537"},"modified":"2020-10-22T22:14:48","modified_gmt":"2020-10-22T21:14:48","slug":"economist-defi-prices-to-trend-higher-as-bitcoin-creates-tailwind-for-beta-assets","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/economist-defi-prices-to-trend-higher-as-bitcoin-creates-tailwind-for-beta-assets\/","title":{"rendered":"Economist: DeFi prices to trend higher as Bitcoin creates tailwind for beta assets"},"content":{"rendered":"<p>The <a href=\"http:\/\/cryptoslate.com\/cryptos\/defi\">DeFi sector<\/a> has been struck hard by the recent market-wide downturn seen throughout the past couple of months. Its descent first began at the start of September after Bitcoin\u2019s price slid from its previously $12,400 highs.<\/p>\n<p>Since then, many of the coins residing within this part of the crypto market have posted massive losses, erasing all the gains incurred due to the sector\u2019s parabolic push higher.<\/p>\n<p>Over the past couple of days, the larger digital assets \u2013 like Bitcoin and Ethereum \u2013 have both posted immense surges that have shifted the market conditions back into bulls\u2019 favor. Yet, the DeFi sector is still lagging due to its \u201chigh beta\u201d nature.<\/p>\n<p>One economist is now noting that he expects these tokens to see some relief in the near-term, which could act as a prelude to a December bull run that acts as a second wave of the DeFi hype phase.<\/p>\n<h2><strong>DeFi tokens continue underperforming Bitcoin, Ethereum<\/strong><\/h2>\n<p>Bitcoin has led the recent market-wide rally, surging past $12,000 a couple of days ago and reaching highs of $13,200 yesterday afternoon before facing some resistance.<\/p>\n<p>During the first day of its uptrend, altcoins sold off as investors fled away from riskier assets, but yesterday this trend was nullified when Ethereum rocketed past its $400 resistance.<\/p>\n<p>Despite Ethereum\u2019s present strength, assets within the DeFi sector have not yet seen any notable relief rallies, as many are still consolidating or drifting lower.<\/p>\n<p>Per <a href=\"https:\/\/cryptoslate.com\/cryptos\/defi\/\">CryptoSlate\u2019s proprietary data<\/a>, the DeFi sector is up just under seven percent today. It is important to note that Wrapped Bitcoin (<a href=\"https:\/\/cryptoslate.com\/coins\/wrapped-bitcoin\/\">WBTC<\/a>) and RenBTC have accounted for a good portion of these gains.<\/p>\n<figure id=\"attachment_174539\" aria-describedby=\"caption-attachment-174539\" style=\"width: 1024px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-174539 size-large\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/10\/Screen-Shot-2020-10-22-at-11.27.09-AM-1024x368.png\" alt=\"Bitcoin DeFi\" width=\"1024\" height=\"368\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/10\/Screen-Shot-2020-10-22-at-11.27.09-AM-1024x368.png 1024w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/10\/Screen-Shot-2020-10-22-at-11.27.09-AM-300x108.png 300w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/10\/Screen-Shot-2020-10-22-at-11.27.09-AM-768x276.png 768w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/10\/Screen-Shot-2020-10-22-at-11.27.09-AM.png 1436w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><figcaption id=\"caption-attachment-174539\" class=\"wp-caption-text\">Data Source: CryptoSlate<\/figcaption><\/figure>\n<h2><strong>Economist claims DeFi bull market may resume in December<\/strong><strong>\u00a0<\/strong><\/h2>\n<p>Crypto-focused economist Alex Kr\u00fcger <a href=\"https:\/\/twitter.com\/classicmacro\/status\/1319290322929631232\">explained<\/a> that he thinks DeFi tokens will see higher prices in the coming few days as investors begin speculating on riskier plays.<\/p>\n<p>However, he believes that the second wave of DeFi hype won\u2019t come about until December when investors begin rotating capital away from larger digital assets like Bitcoin and into beta assets.<\/p>\n<blockquote><p>\u201cBigger picture, DeFi is not dead, it will eventually resume its 2-way high beta behavior (vs BTC). I'm thinking it will restart a bull-run come December, once market goes back into risk-on mode. Not as strong as the prior run, as crazy yields won't come back.\u201d<\/p><\/blockquote>\n<p>Because so many investors were struck by the myriad of \u201crug pulls\u201d and scams that have been plaguing the DeFi sector as of late, there will likely be an increased emphasis on quality investments during the next wave.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The DeFi sector has been struck hard by the recent market-wide downturn seen throughout the past couple of months. Its descent first began at the start of September after Bitcoin\u2019s price slid from its previously $12,400 highs. Since then, many of the coins residing within this part of the crypto market have posted massive losses, [&hellip;]<\/p>\n","protected":false},"author":174,"featured_media":174550,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[46940],"tags":[60786],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Economist: DeFi prices to trend higher as Bitcoin creates tailwind for beta assets<\/title>\n<meta name=\"description\" content=\"One economist is now noting that he expects DeFi tokens to see some relief in the near-term as Bitcoin rallies past $13,000.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/economist-defi-prices-to-trend-higher-as-bitcoin-creates-tailwind-for-beta-assets\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Economist: DeFi prices to trend higher as Bitcoin creates tailwind for beta assets\" \/>\n<meta property=\"og:description\" content=\"One economist is now noting that he expects DeFi tokens to see some relief in the near-term as Bitcoin rallies past $13,000.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/cryptoslate.com\/economist-defi-prices-to-trend-higher-as-bitcoin-creates-tailwind-for-beta-assets\/\" \/>\n<meta property=\"og:site_name\" content=\"CryptoSlate\" \/>\n<meta property=\"article:published_time\" content=\"2020-10-23T08:00:19+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2020-10-22T21:14:48+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2020\/10\/ethereum-wind.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"630\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Cole Petersen\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:site\" content=\"@cryptoslate\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Cole Petersen\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"NewsArticle\",\"@id\":\"https:\/\/cryptoslate.com\/economist-defi-prices-to-trend-higher-as-bitcoin-creates-tailwind-for-beta-assets\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/cryptoslate.com\/economist-defi-prices-to-trend-higher-as-bitcoin-creates-tailwind-for-beta-assets\/\"},\"author\":{\"@type\":\"Person\",\"@id\":\"https:\/\/cryptoslate.com\/author\/cole-petersen\/#person\",\"name\":\"Cole Petersen\",\"url\":\"https:\/\/cryptoslate.com\/author\/cole-petersen\/\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/cryptoslate.com\/author\/cole-petersen\/\"},\"image\":{\"@type\":\"ImageObject\",\"@id\":\"https:\/\/cryptoslate.com\/author\/cole-petersen\/#authorimage\",\"url\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/11\/author-cole-petersen.jpg\",\"contentUrl\":\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2019\/11\/author-cole-petersen.jpg\",\"caption\":\"Cole Petersen\"},\"jobTitle\":\"Journalist\",\"description\":\"Cole is a freelance journalist and university student studying philosophy. 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