As a seasoned crypto analyst with years of experience navigating the volatile digital asset market, I must say that this week has been quite the rollercoaster ride. The ups and downs of the top coins have kept me on my toes, and I’ve learned to expect the unexpected in this space.
Bitcoin (BTC) surpassed its previous record price of $94,041 following BlackRock’s debut of the iShares Bitcoin Trust ETF (IBIT) for options trading. However, it has since dropped to a current trade of $92,114, marking an almost 1% increase in the last day. While Bitcoin reached a new peak, the overall crypto market value experienced a minor decrease and now stands at approximately $3.07 trillion.
Besides Bitcoin, various other digital currencies such as Ethereum, Solana, Ripple, Dogecoin, Shiba Inu, Toncoin, and Polkadot experienced a drop in value as well. According to ChangeNOW’s Chief Marketing Officer Pauline Shangett, this trend was observed.
As an analyst, I find myself observing an impressive new all-time high in Bitcoin, a remarkable milestone indeed. This rise appears to be fueled by enthusiasm surrounding the launch of the iShares Bitcoin Trust ETF. Nevertheless, the broader crypto market’s downturn suggests that this rally may be confined and hasn’t yet catalyzed a comprehensive uplift for the sector. The current dip hints at some profit-taking and caution among investors, who are seeking more concrete regulatory directives across the cryptocurrency landscape before fully committing.
BlackRock Officially Launches iShares Bitcoin Trust ETF For Options Trading
The world’s largest investment firm, BlackRock, has introduced an ETF for options trading related to Bitcoin (IBIT). This move, following the SEC’s approval of Bitcoin ETF options in September, has propelled Bitcoin to a record high of $94,041. Analyst James Seyffart from Bloomberg suggests that this surge is anticipated, as traders have shown interest in buying call options (betting on a price increase) over put options (betting on a price decrease), with approximately 289,000 call options and 65,000 put options traded daily.
The combined potential investment across all available options amounts to $1.9 billion, indicating a substantial level of curiosity and engagement with cryptocurrency offerings.
New update: The total value of trades on $IBIT’s first day of options trading came close to $1.9 billion, with a notional exposure distributed across 354,000 contracts. Out of these, 289,000 were Call options and 65,000 were Put options. This suggests a ratio of approximately 4.4 Calls for every Put, indicating a strong bullish sentiment in the market. These trades are likely associated with today’s surge towards new record highs in Bitcoin.
Eric Balchunas, an analyst from Bloomberg ETF, made a comparison between IBIT and the SPDR Gold Trust (GLd). Currently, GLd is valued at around $5 billion in the market.
One billion nine hundred million dollars (1.9b) is an unprecedented amount for a company on its first day. To put this into perspective, $BITO, which has been operational for four years, made $363 million. It’s also important to note that these figures are with a contract position limit of 25,000. However, even though $1.9b is impressive, it’s not quite at the level of a ‘big dog’ yet. For example, today $GLD made five billion dollars, but given a few more days or weeks, we might see $1.9b reach similar heights.
VanEck Officially Supports Bitcoin Strategic Reserve
The proposal by Donald Trump for Bitcoin (BTC) to become the most highly valued asset is receiving increasing backing within the financial sector, with VanEck expressing approval of the idea. VanEck manages over $118 billion in assets and their endorsement follows on from Wyoming Republican Senator Cynthia Lummis presenting the idea to Congress. Previously, Lummis had also suggested the Boost Innovation, Technology, and Competitiveness through Optimized Investment Nationwide (BITCOIN Act) earlier this year. In simpler terms, more people in the financial industry are supporting Trump’s plan for Bitcoin to be very valuable, VanEck is one of them, and Senator Cynthia Lummis has previously suggested a law that could help make Bitcoin more widely used and competitive.
One of the world’s leading asset management firms, VanEck, has expressed interest in backing President Trump’s concept of a strategic Bitcoin reserve. Notably, they were the pioneers in suggesting a Bitcoin ETF based on futures. If this bill is approved by Congress, it could significantly alter the dynamics of the US economy and its fiscal budget.
Trump Taps Crypto Lawyer To Lead SEC
President-elect Donald Trump is considering appointing Teresa Goody Guillen, a highly experienced Securities attorney with a background in traditional finance and blockchain regulation, as the Securities and Exchange Commission Chair. If selected, the appointment could shift the regulator’s stance toward crypto and suggest a friendly approach. Trump has stated he wants to move away from “regulation by enforcement” in the crypto space. He also promised to fire current SEC Chair Gary Gensler on his first day in office, with reports suggesting Gensler is already preparing to resign before Trump takes office.
The new leadership is seeking an individual well-versed in cryptocurrencies and digital finance, capable of influencing the Securities and Exchange Commission’s (SEC) position on crypto matters until Congress provides regulatory guidance. Industry experts find Guillen a promising choice given her expertise in security law and pragmatic approach to regulation. Nonetheless, other potential candidates are also being evaluated, such as Robert Stebbins from Willkie Farr & Gallagher, Brad Bondi from Paul Hastings, former SEC commissioner Paul Atkins, and Brian Brooks, who previously held the position of Acting Comptroller of the Currency.
Spot Bitcoin ETFs Surge
Bitcoin Spot ETFs experienced a surge in assets, reaching an impressive $138 billion, largely due to Bitcoin (BTC) hitting a fresh record high. This contributed significantly to the overall increase. In just one week, investments into these Bitcoin Spot ETFs alone soared to $1.67 billion, boosting their total assets to approximately $95.4 billion. Similarly, Ethereum Spot ETFs saw substantial inflows amounting to $646 million, taking the total value of Ethereum products to around $9.15 billion. The increased interest in Bitcoin and Ethereum Spot ETFs can be attributed to the US elections, which has positively impacted investor confidence.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) momentarily spiked beyond $94,000, establishing a new record high, following the debut of the iShares Bitcoin Trust ETF for options trading. Nevertheless, its price retreated after reaching this peak, dipping below $93,000 and stabilizing at its current position. As the price graph shows, BTC’s remarkable post-election rally has started to wane in recent days, as the price has been unable to surpass $93,000 – a level where sellers are active. For most of last week, Bitcoin mostly stayed in a consolidation phase, trading between $85,000 and $91,000, with its value approaching $93,000 during the current week.
Last week, Bitcoin experienced a significant surge, jumping more than 9% on Monday to reach $87,706. Yet, it faced strong selling activity on Tuesday, plummeting to a daily minimum of $82,709 before bouncing back and climbing above $85,000, ending the day at $87,210 following a minimal decrease. Investors resumed buying on Wednesday, pushing Bitcoin past $90,000 to close at $90,150 after a 3.37% rise. However, the price dipped again on Thursday, shedding 3.13% to hit $87,324. Optimism returned among investors on Friday as Bitcoin gained 3.90% and regained the $90,000 mark, finishing at $90,726.
BTC fell back into the red over the weekend, dropping by 0.67% on Saturday and 0.73% on Sunday to settle at $89,464. The current week began with BTC back in positive territory, rising by 1.17% and settling at $90,509. BTC briefly pushed above $94,000 on Tuesday, reaching a new all-time high before declining and settling at $92,458. The current session sees BTC marginally up, as buyers and sellers struggle to establish control.
Examining the MACD, it appears a bullish mood continues, even with a noticeable drop, as Bitcoin’s growth seems to halt near $92,000-$93,000. Yet, the RSI remains in an overbought state, suggesting a possible short-term dip before Bitcoin resumes its climb. Analysts foresee Bitcoin surpassing the $100,000 price point by year’s end; however, some have adopted a cautious stance, suggesting Bitcoin might experience a substantial correction prior to continuing its upward trend.
Ethereum (ETH) Price Analysis
Since the last week’s end, Ethereum (ETH) has been fluctuating between $3,000 and $3,200. Buyers have been finding it tough to gain traction and push the price beyond the resistance at $3,400. Despite increasing selling pressure, bulls have managed to prevent a significant decline below $3,000. The upward momentum of ETH halted after it reached $3,373 last Monday, marking a 5.90% increase. However, with intense selling pressure at this level, ETH turned red again on Tuesday, plunging nearly 4% to close at $3,246. The price experienced significant volatility on Wednesday as buyers made an effort to regain control before losing steam. This led sellers to take charge and push ETH down by 1.68% to $3,191. Bearish feelings continued on Thursday, causing ETH to drop over 4%, ending the day at $3,059.
On Friday, despite significant attempts to sell, ETH managed to rebound, gaining 0.99% and closing above $3,000 at $3,090. The price climbed higher on Saturday, reaching $3,218 before dipping and ending the day at $3,133, marking a rise of 1.38%. However, it experienced a decline in the red on Sunday, dropping nearly 2% to $3,075. ETH regained some ground on Monday, increasing by 4.37% and closing at $3,209, but slid again on Tuesday, losing 3.13% to reach $3,109. As of the current session, ETH is slightly in the red as both buyers and sellers are fighting for control.
Shoppers aim to regain pace and push the price beyond the $3,400 barrier. If they succeed in breaking this threshold, Ethereum might climb to $3,500. But if traders dominate and pull ETH below $3,000, there’s a possibility of a dip down to $2,850.
Solana (SOL) Price Analysis
Over the recent trading days, Solana (SOL) has been on a downward trend, finding it challenging to break past the hurdle at $250. Known as the Ethereum competitor, SOL spent much of last week in consolidation between $200 and $225 before experiencing a surge of over 10% on Sunday. SOL kicked off the previous week with a robust increase of 5.76%, reaching $222. However, selling pressure resurfaced on Tuesday as SOL dipped by 4.69% to $211. There was significant volatility on Wednesday as both buyers and sellers battled for control, but SOL recovered from a low of $201 to show a gain of 1.69%, ending at $215. Negative sentiment returned on Thursday as SOL dropped nearly 3% to $209 before rebounding on Friday to demonstrate a rise of 4.25% and settle at $218.
On Saturday, SOL experienced a 1.30% decrease, dropping to $215. But on Sunday, a bullish trend emerged and SOL surged over 10%, exceeding $225 and ending at $237. The price peaked at $248 on Monday as buyers probed the $250 mark. However, it retreated and finished at $239, recording a 1.04% increase. On Tuesday, SOL made an attempt to surpass $250 but lost steam, giving way to sellers who pushed the price down by 0.88% to $237. In the current session, SOL is down by 1.12%, with sellers aiming to push the price back towards $225.
Bittensor (TAO) Price Analysis
Last week, Bittensor (TAO) experienced a significant decrease following its inability to build upon Monday’s surge of 8.41%, which peaked the price at $607. Tuesday saw TAO encounter substantial volatility as sellers aimed to push the price under $500. The volatility led TAO to reach a daily low of $514 before rebounding and closing at $572. Unfortunately, TAO continued to slide on Wednesday, dropping below its 50-day moving average after a fall of more than 6%, settling at $537. On Thursday, the downward trend persisted as TAO dipped beneath its 20-day moving average, experiencing a nearly 8% drop and closing at $494. Friday saw a minor rebound as TAO recorded a 4.78% increase, regaining its position above the 20-day SMA and ending at $518, only to register a slight decline on Saturday.
Bearish sentiment intensified on Sunday as TAO dropped over 5% to slip below $500 and settle at $491. However, it recovered on Monday to post an increase of 4.29% and settled at $512. Sellers returned to the market on Tuesday as TAO fell 5.49% to $484. The current session sees TAO down by 2.18%, as sellers look to drive the price toward the $400 support level.
Internet Computer (ICP) Price Analysis
On Tuesday, Internet Computer (ICP) saw a significant drop, dipping below its 200-day Simple Moving Average (SMA) and closing at $8.82. The downward trend continued on Wednesday as sellers pushed the price to an intraday low of $8.07 due to increasing bearish feelings. However, ICP managed to bounce back from this point to end the day at $8.54, experiencing a decrease of around 3%. On Thursday, sellers remained in control, causing ICP to fall nearly 7%, slipping below both its 20 and 50-day SMAs and settling at $7.97. Despite this, on Friday, ICP rallied from this level, surging over 9% to move back above the 20 and 50-day SMAs and close at $8.70. Optimistic feelings persisted on Saturday as ICP moved past its 200-day SMA, reclaiming $9 and ending the day at $9.25.
On Sunday, buyers made efforts to gain traction as ICP reached a peak of $10.14. Yet, with sellers being present at this point, the momentum shifted, leading ICP to slide nearly 3%, falling below the 200-day Simple Moving Average (SMA) and settling at $8.99. The new week started off with ICP climbing by 4.78% to surpass the 200-day SMA, reaching $9.42. However, the price dipped on Tuesday, even though it touched an intraday high of $9.79 before slipping to $9.16. As of now, ICP is almost 2% up as buyers aim to maintain the upward trend and exceed $9.50.
Dogwifhat (WIF) Price Analysis
On Thursday, Dogeifhat (WIF) experienced a notable drop after peaking at $4.82, driven by an impressive 29% rise earlier in the day. However, as buying activity waned, WIF plummeted by nearly 14%, ending the session at $3.58. On Friday, WIF dipped to a low of $3.37 as sellers sought to push prices towards $3. But it managed to rebound and gained 8.51%, closing the day at $3.89. Bearish feelings resurfaced on Saturday, causing WIF to drop 7.41% to $3.60. On Sunday, WIF exhibited substantial volatility, plunging to a low of $3.37 and reaching a high of $3.94 before settling at $3.60 once more.
On Monday, a bearish outlook emerged for WIF, which dropped nearly 5% to reach $3.43. This downward trend persisted on Tuesday, with a further decrease of 4.27%, leaving the stock at $3.29. At present, there’s a slight uptick in WIF as buyers aim to offset selling pressure and drive the price back above the $3.50 mark.
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2024-11-20 17:01