For the second consecutive day, Bitcoin (BTC) witnessed a decline, dipping below $95,000 on Wednesday to reach a low of $92,911 before rebounding slightly to its current level of $94,442. Over the past 24 hours, Bitcoin has decreased by nearly 3%, contributing to a total market loss of approximately $320 billion in the crypto market. Interestingly, despite bearish sentiments, spot Bitcoin ETFs have experienced inflows amounting to around $52 million.
Even though Ethereum (ETH) experienced a minor dip of approximately 1.50%, it held strong on Wednesday following a significant drop the previous day. Currently, Ethereum is trading at around $3,300, which marks its position as the second-largest cryptocurrency. In contrast to the broader bearish trend, Ripple (XRP) managed to buck the trend and registered a slight increase, fueled by its partnership with Chainlink (LINK). With the overall crypto market in a downturn, its total market cap has decreased nearly 2%, now standing at approximately $3.32 trillion.
Bitcoin (BTC) Slump Could Set Stage For Rally Near Trump Inauguration
On November 4th, Bitcoin (BTC) experienced a noticeable drop, falling beneath $95,000, following robust US job figures that caused a domino effect on risky assets. The US Labor Department’s JOLTS report disclosed approximately 8.1 million job vacancies, well above the predicted 7.74 million. This unexpectedly high figure instilled a sense of caution in the markets, causing bond yields to increase and risk-related assets like BTC to decrease. According to QCP, the decline in BTC was primarily due to about $206 million worth of liquidations in just an hour. The unpredictability also affected traditional markets, as evidenced by the significant fluctuations in the S&P 500 and Nasdaq.
Traditional market reactions underscore Bitcoin’s link to the broader financial sector, particularly during periods of economic instability. Interestingly, exchange-traded funds that deal directly with spot Bitcoin have suffered a steep drop, going from $987 million to just $52.9 million. However, BlackRock’s IBIT stands out as an exception, attracting $596 million in investments and defying the trend of withdrawals observed across all ETFs. On the other hand, funds like Ark and 21Shares have experienced substantial outflows, with investors pulling out over $210 million from the ARKB Fund alone.
The report from QCP also emphasized two significant factors that might significantly influence Bitcoin’s price: the upcoming Federal Open Market Committee (FOMC) decision and the Non-Farm Payroll (NFP) data. Yet, the firm also suggested that the current drop in price could be temporary and a substantial market rally could occur once Donald Trump assumes office.
As excitement about the market grows, we think that Bitcoin’s dip is just a temporary halt, paving the way for an upward trend due to increased optimism surrounding Trump’s inauguration.
SEC Must Work On Crypto Regulation
According to Gary Gensler, who is stepping down as head of the Securities and Exchange Commission (SEC), there’s a substantial amount of work left to do when it comes to regulating altcoins and intermediaries in the cryptocurrency market. He emphasized that investors are not receiving enough disclosures or information from digital asset companies. During his time at the SEC, Gensler has taken enforcement action against various crypto entities, including fraudsters as well as major players like Coinbase and DRW Holdings.
On January 20, when President-elect Donald Trump takes office, Gensler will resign as Chair of the Securities and Exchange Commission (SEC). In his place, Trump has nominated Paul Atkins. Atkins is recognized for his supportive stance on cryptocurrencies and is anticipated to lessen enforcement actions against crypto companies while having a positive outlook on the industry.
Gensler highlighted that his predecessor, Jay Clayton, who led the agency during the first Trump administration, pursued 80 cases related to cryptocurrency. Under Clayton’s leadership, the SEC targeted companies issuing tokens classified as securities. However, Gensler emphasized concerns about market intermediaries not adhering to securities laws regarding registration and disclosure. Moreover, he expressed his belief that most crypto projects are likely to fail.
This field is unusually steeped in emotion rather than focused on the underlying foundations.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) experienced a downturn, with investors growing anxious about rising bond yields and the Federal Reserve’s monetary policy. This unease caused BTC to fall from its recent peak of $102,668 to a low of $92,546. As economic factors shifted against risk assets like BTC, the leading cryptocurrency dropped by more than 5% on Tuesday and almost 2% on Wednesday. It also dipped below crucial moving averages and support levels. If selling pressure persists, Bitcoin could lose its gains from the start of January and fall to $90,000. Currently in this trading session, BTC has decreased by about 1%, reaching a low of $93,512.
To start the new year, Bitcoin (BTC) exhibited a bullish trend, rising 1.01% on January 1st to reach $94,376. The bullish sentiment intensified on Thursday as BTC surpassed its 50-day Simple Moving Average (SMA), peaking at an intraday high of $97,661. Despite this, it could not maintain this level and closed the day at $96,882, marking a 2.59% increase.
On Friday, BTC experienced significant volatility as both buyers and sellers fought for control. This struggle led to an intraday low of $95,604 and a high of $98,832 before closing above its 20-day SMA at $97,878.
Over the weekend, sellers held the upper hand, causing BTC to record only marginal increases on both Saturday and Sunday, ending the weekend at $98,309.
On Monday, Bitcoin (BTC) saw a significant boost in optimism as it crossed $100,000 and ended at $102,228 after rising nearly 4%. However, this optimistic outlook shifted on Tuesday when the price dipped more than 5%, falling below $100,000 and the 50-day Simple Moving Average (SMA), ending the day at $97,019. Pessimism continued on Wednesday as BTC dropped beneath the 20-day SMA, reaching a daily low of $92,546 before rebounding to retake $95,000 and finish at $95,121, marking a decrease of 1.96%. Currently, Bitcoin is experiencing a decline of nearly 1% as the overall market mood remains heavy. Analyst Katie Stockton from Fairland Strategies has cautioned investors to prepare for a possible drop of more than 10% in BTC prices, indicating that the asset may have been excessively overbought during its recent bullish streak. If her prediction holds true, BTC could find support around $84,000, translating to a decline of approximately 13%.
Ethereum (ETH) Price Analysis
During the current trading session, Ethereum (ETH) has managed to halt its recent downward trend as it strives to bounce back from the $3,300 mark. ETH showed strong bullish signs in the preceding week but lost steam after it failed to maintain its position above the resistance at $3,700. Although there was a minor drop on Tuesday (December 31), ETH began the new year on a positive note, registering a 0.69% increase on Wednesday. The cryptocurrency continued to climb higher on Thursday, increasing by nearly 3%, settling at $3,452. By Friday, there was a significant surge in bullish sentiment as ETH moved above its 20 and 50-day Simple Moving Averages (SMAs) and the $3,500 level to reach $3,607, representing a 4.51% increase.
On Saturday, ETH saw a rise of 1.37%, reaching $3,657, as selling pressure intensified. However, on Sunday, ETH’s momentum dwindled, leading to a decline of 0.61% to $3,634. A recovery followed on Monday with an increase of 1.46%, peaking at an intraday high of $3,744 before settling at $3,687. But Tuesday saw a change in market sentiment, causing ETH to plummet by more than 8% and fall below its 20-day and 50-day Simple Moving Averages (SMAs), closing at $3,381. The downward trend continued on Wednesday, with the price dropping to an intraday low of $3,209 before settling at $3,327. As of now, the struggle between buyers and sellers persists, with a potential drop below $3,300 towards $3,000 if sellers gain control, or an upward movement above the 20-day SMA if buyers maintain control.
Solana (SOL) Price Analysis
As a crypto investor, I’ve noticed that Solana (SOL) has been struggling to regain the $200 mark in this current trading session, with sellers maintaining pressure on the price. The coin had shown promising bullish signs until recently, but it lost momentum after failing to break above its 50-day Simple Moving Average (SMA). However, there was a slight upward trend on Wednesday when SOL rose nearly 3%, reaching $194, signaling a positive start to the new year.
Things looked hopeful on Thursday as bullish sentiment spiked, pushing SOL beyond its 20-day SMA and the $200 mark, settling at $208. The buyers managed to maintain control on Friday, contributing to an almost 5% increase in SOL’s price and moving it up to $217.
Initially, Solana (SOL) had been progressing well, but as the 50-day Simple Moving Average entered the picture, it started losing steam over the weekend. On Saturday, it declined by 0.56%, followed by a 1.52% drop on Sunday, leaving it at $213. The new week started with SOL reaching an intraday high of $223, rising by 2.30% to $218. However, it plummeted significantly on Tuesday, decreasing by 7.38% and settling at $202. On Wednesday, it dipped below the $200 mark, touching an intraday low of $188. Nevertheless, it managed to recover slightly, moving above the 20-day SMA and ending the day at $197. Currently, in this session, SOL is down nearly 2%, falling back under the 20-day SMA and trading around $194.
Cardano (ADA) Price Analysis
On Wednesday, Cardano (ADA) experienced a significant rise at the beginning of the year, climbing 9% to reach $0.92. Buyers maintained control on Thursday, pushing ADA above its 20-day Simple Moving Average and increasing by over 4% to $0.96. The optimistic outlook intensified on Friday as ADA surpassed the 50-day SMA and $1, reaching $1.08. However, the momentum slowed down a bit on Saturday, causing ADA to dip by 1.56% to $1.07. But, the price bounced back on Sunday, rising nearly 2% to settle at $1.09.
This week’s trading for ADA started turbulently as both buyers and sellers fought to gain dominance, resulting in price fluctuations. Despite a minor rise initially, ADA plummeted by more than 9% on Tuesday, falling beneath its 50-day Simple Moving Average (SMA) and $1 mark to settle at $0.99. The sellers continued their grip the next day as ADA faced considerable volatility, leading to a drop of over 4%, closing at $0.94. Currently, ADA is down by nearly 2% in this session, trading around $0.92 and dipping below its 20-day SMA.
Aptos (APT) Price Analysis
As a researcher, I observed a significant upward trajectory in APT’s price movement over the course of a week. Initially dipping to $8.41 on Wednesday, it rebounded by 3.48%, closing at $9.01. The following day, Thursday, saw buyers maintaining control as APT climbed almost 3% to reach $9.27.
Friday witnessed a surge in bullish sentiment, with APT rising by an impressive 5.48%. This move propelled it beyond a crucial resistance level and settled it at $9.78. Over the weekend, the positive trend continued, with APT recording an increase of 2.14% on Saturday and another 1% on Sunday. This pushed its price above the 20-day Simple Moving Average (SMA) and surpassing the $1 mark, settling at $10.09.
This week started with APT experiencing significant selling pressure that pushed its price down to an intraday low of $9.81. Despite this, APT managed to rebound by 0.85% and close at $10.17. However, the mood turned bearish on Tuesday as markets dipped, causing APT to drop more than 5% and fall below $10, closing at $9.65. The bearish trend continued on Wednesday when APT dropped below its 20-day moving average and reached an intraday low of $8.64 before ending the day at $9.01, a decline of nearly 7%. Currently, APT is down more than 2% and trading around $8.82 as sellers aim to push it below its 200-day moving average.
Internet Computer (ICP) Price Analysis
The pessimistic feeling towards Internet Computer (ICP) has caused its price to fall below $11, with sellers controlling the market. However, ICP began the year on a positive note, rising by more than 6% on Wednesday to exceed $10 and close at $10.48. On Thursday, it rose further by 1.81%, reaching $10.67. The optimism grew significantly on Friday as ICP jumped over 16%, surpassing its 20 and 50-day moving averages to settle at $12.40. But it lost momentum after reaching this peak, dropping 0.81% on Saturday and a further 1.46% on Sunday, ending the weekend at $12.12.
This week started off with ICP experiencing significant fluctuation as both buyers and sellers fought for dominance, leading to an intraday peak of $12.52 and a trough of $11.83. However, the market mood shifted on Tuesday, causing ICP to plummet nearly 10%, dipping below its 50-day moving average and ending the day at $11.02. Sellers maintained control on Wednesday as ICP sank to an intraday low of $10.37, briefly slipping beneath the 20-day moving average before rebounding slightly and closing at $10.87. Currently, ICP is down by almost 4% as sellers aim to push it below the $10 mark.
Filecoin (FIL) Price Analysis
As a researcher, I’ve observed a significant downturn in Filecoin (FIL) over recent trading sessions, with prices nearly returning to their start-of-year levels. However, there was a notable surge on Wednesday, pushing the price above $5 to reach $5.10. The upward momentum continued on Thursday, resulting in an approximately 4% increase to $5.30. On Friday, bullish sentiment intensified, with FIL rising nearly 7%, surpassing the 20-day Simple Moving Average (SMA) and settling at $5.66. A minor dip occurred on Saturday, but prices rebounded on Sunday, surging above the 50-day SMA after a near 5% increase, settling at $5.91.
On Monday, buyers held the upper hand as FIL reached a peak of $6.29. Despite this, the price fell to $5.99 and ended up with a 1.20% rise. Notably, on Tuesday, there was a substantial drop in FIL, approximately 11%, causing it to go under the 50-day moving average and close at $5.35. Sellers maintained control on Wednesday as FIL dipped below the 20-day moving average and finished at $5.11. In today’s trading session, FIL has declined by more than 2% as buyers aim to push it below the $5 mark.
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2025-01-09 12:09