As a seasoned investor with decades of experience under my belt, I must say that the crypto market is as unpredictable as ever. The rollercoaster ride we saw last week was nothing short of exhilarating, and it’s safe to say that no one can predict the direction these digital assets will take next.
This week started off turbulent for the cryptocurrency markets, with Bitcoin (BTC) momentarily dipping to around $94,000. This downturn sparked a severe sell-off, resulting in over $1.5 billion worth of crypto derivative positions being liquidated. Although BTC later bounced back to hover above $98,000, it then experienced a minor slide, falling below $97,000 to its current price of $96,878. The abrupt fall in BTC’s value sent shockwaves through the crypto market, causing other altcoins to plummet even further.
Over the last 24 hours, Bitcoin (BTC) dipped nearly 3%, but Ethereum (ETH) saw a steeper decline of more than 6%, falling below $3,700 after failing to break through $4,000. Ripple (XRP) experienced an impressive drop of over 13% and is currently trading at $2.14. Solana (SOL) also saw a decrease of over 7%, trading at around $215 due to persistent bearish sentiment. Other notable cryptocurrencies like Dogecoin (DOGE), Cardano (ADA), Tron (TRX), Avalanche (AVAX), Toncoin (TON), Chainlink (LINK), Polkadot (DOT), Stellar (XLM), Uniswap (UNI), and Litecoin (LTC) all suffered double-digit losses. This has led to a significant drop in the total crypto market cap, down almost 6% to approximately $3.44 trillion.
Crypto Market Sees Bloodbath
As an analyst, I observed a sudden plunge in Bitcoin’s price, which dipped to approximately $94,000. Despite a partial recovery, Bitcoin is having difficulty rebounding and holding steady above $97,000, currently trading at around $96,700. The downward trend in Bitcoin had a significant impact on the broader market, as prominent altcoins like Ethereum (ETH) saw a decline of over 6%, while Ripple (XRP) experienced a dramatic drop of 13%. The sellers continue to dominate these markets, with Dogecoin (DOGE), Polkadot (DOT), and other altcoins also experiencing steep declines. The overall crypto market has seen drops across the board, indicating a challenging period for investors in this sector.
The market for cryptocurrency derivatives suffered a significant blow, causing it to stagger. According to Coinglass, this event erased over $1.5 billion in both long and short positions, with about $1.38 billion being long positions. This turmoil affected 514,384 traders as major altcoins endured the majority of the losses. This downturn serves as a stark warning of the high volatility within the crypto system, where swift price changes can erase profits in mere minutes and intensify losses.
El Salvador Scales Back Bitcoin (BTC) Ambitions
El Salvador is nearing a deal with the International Monetary Fund (IMF) for a $1.3 billion loan. To secure this, the country must abandon its use of Bitcoin as legal tender and work towards reducing its government deficit. An IMF team is currently in El Salvador to finalize negotiations with President Nayib Bukele’s administration. Once agreed upon, the deal will allow access to $1 billion from the World Bank and another $1 billion from the Inter-American Development Bank.
The loan would see El Salvador return to the international financial fold after years of isolation following its adoption of BTC as legal tender. The IMF had vehemently opposed the move, citing risks to financial stability and integrity, and urged Bukele’s government to stop accepting crypto as legal tender. Under the terms of the agreement with the IMF, El Salvador would make it voluntary for businesses to accept BTC as payment. It would also commit to reducing its budget deficit by three percentage points of GDP through spending cuts and tax increases. It would also have to pass an anti-corruption law and increase reserves from $11 billion to $15 billion.
US Can Become Crypto Superpower
Eric Trump, who serves as the executive vice president at the Trump Organization, expressed his view that practical regulatory frameworks could transform the United States into a dominant force in the cryptocurrency sector. He further mentioned his personal admiration for cryptocurrencies, and he noted that Donald Trump, upon his return to the White House, aims to establish America as the leading hub for cryptocurrencies worldwide. Eric Trump’s statement follows Bitcoin surpassing $100,000, an event that financial analysts considered a significant milestone in the growth of cryptocurrency.
The current banking system feels outdated. It’s only a matter of when, not if, cryptocurrency will not just match but surpass it significantly. We’re extremely enthusiastic on multiple levels. I believe America could become the global leader in crypto. I wholeheartedly endorse it, my father does too, and our family is fully adopting it. We have faith in Decentralized Finance (DeFi), and we think it’s the path of the future. If America doesn’t take the lead, we risk missing out on many opportunities.
Donald Trump’s newly appointed President of the Securities and Exchange Commission (SEC), Paul Atkins, is recognized for his supportive stance on cryptocurrencies. He will take over from Gary Gensler. Additionally, Eric was questioned about potential regulatory or deregulatory actions concerning cryptocurrencies by Trump’s administration and what such policies might entail in real-world scenarios.
It appears to be see-through, and indeed, it is. The community in the cryptocurrency sector expresses their exasperation due to a lack of a coherent regulatory plan. They support regulation but seek clear guidelines, which they’ve openly stated. We aim to provide a well-defined roadmap, and hopefully, others will follow suit. It would be fitting for us to lead by example, given our status as Americans. Our ambition is to establish the U.S. as the leading force in the cryptocurrency world.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) experienced a steep decline during a broader sell-off in the cryptocurrency market, leading to substantial losses for crypto traders. This downturn can be traced back to a deterioration in risk sentiment due to escalating geopolitical conflicts and uncertainties surrounding U.S. interest rates. Furthermore, Bitcoin saw considerable profit-taking after reaching the highly anticipated $100,000 threshold, as well as profit-taking in other significant altcoins by traders cashing out their gains.
Bitcoin’s price graph indicates a significant decrease in its value over the recent trading sessions, dipping below crucial support thresholds. The optimistic outlook towards Bitcoin has weakened noticeably during this period, particularly after it reached an all-time high last week and traders cashed out their gains, while geopolitical events influenced market sentiment. At the start of the previous week, BTC started off in the negative, losing 1.25% on Monday and experiencing a minimal decrease on Tuesday, ending at $95,751 following a brief dip below the 20-day Simple Moving Average (SMA). However, it experienced a robust rebound on Wednesday, increasing nearly 3% to reach $98,851. Bitcoin encountered exceptional volatility on Thursday as it surpassed the critical $100,000 mark to establish a new all-time high of $103,900. Yet, the momentum among buyers waned after reaching this peak, causing the price to plummet below the 20-day SMA, hitting a low of $92,285 before rebounding and settling at $97,093.
Although Bitcoin encountered significant fluctuation on Thursday, it rebounded on Friday, ascending nearly 3% and reaching $99,695. Sellers were active at $100,000, limiting its growth to a slight increase on Saturday, ending the day at $99,728. Bitcoin surpassed the $100,000 threshold again on Sunday following a 1.32% rise to $101,043. However, both Bitcoin and the crypto market underwent a substantial dip on Monday. Bitcoin fell below its 20-day moving average to hit an intraday low of $94,177. It then rebounded from this level, climbing back above the 20-day moving average and closing at $97,267, marking a nearly 4% decrease. Currently, Bitcoin has displayed bearish tendencies, with the price dropping slightly after recovering from an intraday low of $95,687.
Bitcoin currently encounters resistance at around $98,000. If purchasers manage to regain dominance, Bitcoin might reassert $100,000 and move towards its record high. Conversely, if sellers maintain control, Bitcoin could fall back to approximately $95,000 once more.
Ethereum (ETH) Price Analysis
This week saw Ethereum (ETH) follow the broader crypto market trend with a significant drop. After starting last week on a bearish note, ETH showed some bullish sentiment, dipping by nearly 2% to close at $3,645. The sellers held sway on Tuesday, causing ETH to decline by 0.76% and reach $3,617. However, on Wednesday, ETH made a recovery, surging over 6% and moving above $3,700 to close at $3,844. The cryptocurrency experienced high volatility on Thursday as both buyers and sellers fought for control. This struggle led to an intraday low of $3,644 and an intraday high of $3,957 before ETH ended the day at $3,787, registering a decline of 1.48%.
On Friday, Ethereum’s price soared above $4,000, peaking at $4,093, but momentum slowed after this point, causing the cryptocurrency to close at $4,003 following a nearly 6% increase. Sellers became active as ETH dipped below $4,000 on Saturday, settling at $3,999. On Sunday, sellers aimed to push the price down, driving it to a low of $3,924, but Ethereum recovered and ended the day slightly higher at $4,007. The beginning of this week saw ETH under intense selling pressure, causing its value to plummet to an intraday low of $3,504 as the markets crashed. However, buyers stepped in to support the price, resulting in a close for the day at $3,716, representing a decrease of more than 7%. The current session finds Ethereum trending slightly upward as both buyers and sellers vie for control.
In simpler terms, if buyers continue to dominate the market, Ethereum (ETH) may surpass $3,800 and potentially reach $4,000. Conversely, if sellers take over, ETH could slide down to around $3,600 or even $3,500.
Solana (SOL) Price Analysis
During the present trading session, Solana (SOL) is making an effort to rebound, with buyers looking to maintain its value above the critical $200 mark. Over the past week, SOL has seen considerable fluctuations as it found it challenging to surpass the 20-day Simple Moving Average (SMA). Last Monday, SOL dipped below the 20-day SMA following a nearly 5% decrease that brought the price down to $225. On Tuesday, sellers tried to push the price lower, taking it to an intra-day low of $215. However, it rebounded from this level and saw an increase of almost 4%, closing at $234. Attempts were made by buyers to surpass the 20-day SMA on Wednesday, but they were unsuccessful due to selling pressure that caused a 1.98% decline to $229. The volatility significantly escalated on Thursday as both buyers and sellers vied for control. Ultimately, the buyers managed to regain control, pushing SOL up by almost 3%, closing at $236.
Yesterday, I observed an effort from buyers to surpass the 20-day Simple Moving Average (SMA) as Solana (SOL) peaked at $246 during the day. However, this momentum dwindled upon reaching that level, resulting in a minor increase to $238 for SOL by the end of the day. On Saturday, SOL hovered close to the resistance level and managed only a minimal rise, staying at $238. Sunday saw SOL dip into the red with a slight decline. The bearish sentiment escalated significantly on Monday when SOL plummeted to an intraday low of $203 before settling at $217 after a nearly 9% drop. This fall also pushed SOL below a crucial support level of $220. Today, the struggle between buyers and sellers persists, with SOL slightly down. Sellers aim to drive the price towards $200, while I, as a buyer, will strive to reclaim the $220 level.
Dogecoin (DOGE) Price Analysis
Last week, I witnessed some rollercoaster movements with Dogecoin (DOGE). It dipped to an intraday low of $0.40 on Monday, only to surge to an intraday high of $0.463 the same day. By the end of the day, it had settled at $0.424 after a nearly 4% drop. Sellers maintained control on Tuesday, causing DOGE to plummet over 4% and close at $0.406. But things turned around for me on Wednesday when the 20-day Simple Moving Average (SMA) acted as a robust support level, propelling DOGE up by almost 7%, closing at $0.433. The volatility returned on Thursday, with DOGE peaking at an intraday high of $0.466 before plummeting to an intraday low of $0.40. Despite the intense selling pressure, the price didn’t fall below the 20-day SMA and ended the day at $0.426 instead.
On Thursday, DOGE experienced strong selling pressure but bounced back on Friday, gaining approximately 2% to close at $0.435. The cryptocurrency maintained its upward trend over the weekend, recording a rise of 4.18% on Saturday and nearly 3% on Sunday, settling at $0.466. However, the momentum shifted as markets plunged on Monday, causing DOGE to plummet by more than 11%. It reached an intraday low of $0.381 before regaining $0.40 and ending the day at $0.414. As we speak, DOGE continues to trade in the red, with a decline of about 1% and currently valued at $0.408. Traders are looking to push the price below the $0.40 mark.
Ripple (XRP) Price Analysis
Last week, Ripple (XRP) saw a substantial rise at the start, peaking at around $2.87 on Monday. However, the upward trend slowed down as selling pressure intensified, leading to a drop in price. On Tuesday, XRP dipped nearly 8% to reach a low of $2.27 before closing at $2.51. The sellers maintained control on Wednesday, pushing XRP below its support level of $2.50, down to $2.36. Attempts by buyers to regain control were made on Thursday, but they lost steam when the price reached an intraday high of $2.49. This allowed sellers to regain control, resulting in a nearly 5% drop to $2.24.
Despite the prevailing bearish sentiment, XRP recovered on Friday, rising over 8% and settling at $2.42. XRP reclaimed the $2.50 level on Saturday after registering an increase of 7.55% and settling at $2.61. However, it fell back in the red on Sunday, registering a marginal decline and settling at $2.60. Bearish sentiment increased substantially on Monday as XRP plummeted almost 15% to $2.21 thanks to a broader market crash. The current session sees XRP marginally up, recovering from an intraday low of $2.04. Sellers will look to regain control and drive XRP below $2. Should it slip below this level, we can expect a drop to $1.50.
Bittensor (TAO) Price Analysis
Since the past week, Bittensor (TAO) has experienced uncommon fluctuations, primarily due to several instances where its value was rejected above $700. On Monday, TAO plummeted to a daily low of $566 due to persistent selling from traders, marking a near 5% drop. However, on Tuesday, there was a recovery of 2.51%, pushing the price up to $621. The bullish momentum continued on Wednesday with TAO reaching an intraday peak of $726. Unfortunately, it couldn’t maintain this level and dipped to close at $656, showing an almost 6% increase. The volatility persisted on Thursday as TAO spiked to a high of $725 and plunged to a low of $626 before finally settling at $679.
On Friday, I observed TAO surpassing the $700 mark, reaching its highest point at $748 during the day, but eventually closing at $705. However, it dipped below $700 on Saturday and ended the day at $699. Sellers aimed to drive TAA lower on Sunday, yet their efforts were thwarted as buyers stepped in, causing a 2.03% increase to $713. Unfortunately, TAO experienced a significant drop on Monday, plunging to an intraday low of $504 before closing at $600, marking a nearly 16% decline. In the current session, TAO is down approximately 2%, trading at $588 after reaching an intraday low of $551.
Arbitrum (ARB) Price Analysis
The upward trend of Arbitrum (ARB) suddenly slowed down near the $1.20 mark, as buyers seemed to lose their momentum. Last week, ARB was quite optimistic, surging approximately 6% on Monday, exceeding $1 and settling at $1.02. There was a surge in volatility on Tuesday when sellers attempted to pull ARB below $1. This led to a dip in price to an intraday low of $0.96, but it eventually recovered by almost 2% to close at $1.04. The bullish feeling strengthened on Wednesday as ARB rallied nearly 9%, going above $1.10 and ending the day at $1.13. However, with sellers being active around $1.15, ARB experienced a decline on Thursday, dropping by more than 3% to $1.10.
On Friday, there was a resurgence of optimistic feelings towards ARB as it surpassed the $1.15 barrier and reached a peak of $1.24 before closing at $1.17. However, sentiment shifted over the weekend with ARB experiencing a 0.89% decline on Saturday and a 0.46% drop on Sunday, ending the weekend at $1.15. This bearish trend intensified on Monday when ARB dipped below $1, reaching a low of $0.84 before closing at $0.96. As we speak, there’s a nearly 2% increase in ARB as investors aim to regain the $1 mark.
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2024-12-10 16:05