What to know:
- Bearish trading in bitcoin (BTC) markets continued late Monday as the asset briefly fell under $92,000 on profit-taking.
- BTC is on track to end December down 4%, its worst since 2021, as both retail investors and long-term holders cash out positions after a 117% yearly surge.
- The broad-based CoinDesk 20 (CD20), an index tracking the largest tokens by market capitalization, minus stablecoins, lost 2.7% in the past 24 hours.
As a seasoned analyst with over two decades of market experience under my belt, I find myself cautiously optimistic about the current state of bitcoin (BTC) markets. The bearish trend we’ve been witnessing since late Monday is not uncommon in the world of cryptocurrencies, and it’s especially prevalent during periods of profit-taking and year-end rebalancing.
However, it’s important to note that BTC’s performance this year has been nothing short of impressive, with a 117% surge. This kind of growth often leads to profit-taking and a correction in the market. I remember similar situations back in the late ’90s during the dotcom boom, where the market was overheated, leading to a correction.
Looking at the current scenario, we might see this bearish trend continue until February when some new policies are expected to be set into motion by the incoming U.S. administration. But as the saying goes, “Every bear market breeds more billionaires than bull markets do millionaires,” so let’s keep our eyes open for potential opportunities.
Interestingly, traders seem to be betting on bitcoin prices going up in March, as evidenced by their buying of call options and the decline in the cost of these options. This could indicate a positive sentiment for the market in the coming months.
On a lighter note, let’s not forget that market predictions are often like trying to predict the weather – it can be wildly inaccurate! So, as always, remember to diversify your portfolio and never invest more than you’re willing to lose. After all, even if bitcoin dips to $0, at least we still have tulips!
Trading in bitcoin markets remained bearish late on Monday, dipping below $92,000 due to profit-taking, even after MicroStrategy’s latest significant purchase. However, by the Asian morning hours on Tuesday, bitcoin had recovered slightly, trading at around $92,800.
Traders at QCP Capital in Singapore believe that the current market trends might persist until February, despite President-elect Donald Trump taking office in the U.S. and implementing new policies. They suggest that January’s average returns (+3.3%) could be matched or even surpassed by February’s, with Bitcoin prices potentially increasing in March based on options flows. This is indicated by a decrease in the cost of call options (options that profit when the stock rises) for March, as traders are buying more of these than put options (options that profit when the stock falls).
Bitcoin is heading towards a 4% decline by the end of December, marking its poorest performance since last year, as both individual and long-term investors are offloading their positions following a significant 117% increase throughout the year. Meanwhile, indicators from the U.S. Chicago PMI suggest an economic downturn, further straining the market that typically follows such trends closely.
On Monday, MicroStrategy, a company specializing in Bitcoin development, made what appears to be its last purchase of the year, acquiring an additional 2,138 Bitcoins for approximately $209 million during the week ending December 29th. This brings their total holdings of Bitcoin to approximately 446,400 coins.
However, the revelation about the purchase did not prevent losses from continuing. Instead, Bitcoin’s price dropped in the subsequent hours after MicroStrategy’s declaration, while the company’s shares tumbled by 8%, reaching their lowest point since early November.
The decline extended to various major cryptocurrencies, with Ethereum (ETH), Ripple (XRP), Solana’s SOL, and Cardano‘s ADA experiencing a drop of approximately 3%, only to subsequently regain some ground. Binance Coin’s BNB remained relatively stable, while Dogecoin (DOGE) and Shiba Inu (SHIB) plummeted by 5%.
In simple terms, over the last day, the CoinDesk 20 Index, which follows the biggest cryptocurrencies based on their total value, excluding stablecoins, experienced a decrease of about 2.7%.
On their penultimate trading day before the new year, exchange-traded funds (ETFs) with assets saw a total withdrawal of approximately $420 million. Fidelity’s FBTC led the outflows with a loss of around $154 million, followed closely by Grayscale’s GBTC at approximately $130 million and BlackRock’s IBIT with around $36 million in losses.
Since December 19th, these products have experienced over $1.5 billion in total withdrawals, following a remarkable influx of almost $2 billion during the initial half of the month. Such significant withdrawals might indicate a change in investor attitude, potentially leaning towards a more cautious or pessimistic stance on bitcoin’s near-term prospects.
Read More
- SUI PREDICTION. SUI cryptocurrency
- „People who loved Dishonored and Prey are going to feel very at home.” Arkane veteran sparks appetite for new, untitled RPG
- LDO PREDICTION. LDO cryptocurrency
- Destiny 2: A Closer Look at the Proposed In-Game Mailbox System
- Clash Royale Deck Discussion: Strategies and Sentiments from the Community
- Jennifer Love Hewitt Made a Christmas Movie to Help Process Her Grief
- ICP PREDICTION. ICP cryptocurrency
- Naughty Dog’s Intergalactic Was Inspired By Akira And Cowboy Bebop
- Critics Share Concerns Over Suicide Squad’s DLC Choices: Joker, Lawless, and Mrs. Freeze
- EUR IDR PREDICTION
2024-12-31 11:04