As a seasoned cryptocurrency investor with years of experience under my belt, I must say that this current market landscape is as unpredictable as ever. The fluctuations in the prices of these digital assets are reminiscent of the rollercoaster ride at an amusement park – exhilarating one moment, stomach-churning the next.
Bitcoin (BTC) fell short of delivering festive gains for investors, staying below the $100,000 mark. Over the past day, BTC has experienced minimal decline and is currently trading at approximately $98,100. On Tuesday, the price dropped to $92,500 but quickly rebounded. Despite this, analysts predict a potential further decrease as large-scale transactions involving Bitcoin have reached their highest level in two years.
On Boxing Day, the majority of cryptocurrencies started the day in negative territory. Ethereum (ETH) dropped nearly 2%, trading around $3,430, while Ripple (XRP) experienced a 2.24% decrease and was priced at approximately $0.51. Solana (SOL), too, saw a decline of almost 2%, with its price hovering around $195. Minor losses were also seen in Dogecoin (DOGE), Cardano (ADA), Tron (TRX), Avalanche (AVAX), Chainlink (LINK), Hedera (HBAR), and Polkadot (DOT). As a result, the total crypto market capitalization dropped by 0.70%, currently standing at $3.41 trillion.
Could We See A Post-Christmas Rally?
Historical Bitcoin (BTC) price patterns indicate a regular pattern of significant growth following Christmas, particularly during halving periods. After each halving event, BTC tends to move into a profitable zone, experiencing substantial price increases after the holiday season. For instance, following the 2012 halving, BTC experienced a remarkable 9,000% increase. A similar pattern was observed post-Christmas in 2016, which later contributed to the 2017 bull run. The trend reoccurred in 2020, with BTC reaching an all-time high following Christmas.
From a crypto investor’s perspective, I’ve noticed that the fluctuations in BTC’s price may be due to seasonal market trends. Towards the end of the year, institutional balance sheets are typically closed and reopened, which can spark fresh capital inflows into the market. This could potentially amplify investment activity as institutional investors rebalance their portfolios to manage tax obligations and align with their investment objectives. Consequently, this could lead to an increase in liquidity and volatility in the cryptocurrency space.
MicroStrategy Purchases More Bitcoin
Michael Saylor’s company, MicroStrategy, revealed it had bought 5,000 units of Bitcoin, marking the culmination of an active buying phase that started in November. Since then, they’ve amassed a total of 113,000 Bitcoin, currently valued at approximately $11 billion. Now, MicroStrategy holds roughly 444,000 Bitcoin, equating to a staggering $44 billion. This acquisition was made shortly after the company was included in the Nasdaq 100, a group of the largest non-financial companies listed on the stock exchange. MicroStrategy finances its Bitcoin purchases using excess cash, as well as by issuing equity and debt, a move that has drawn scrutiny from financial analysts.
In time, the debt will significantly surpass the equity, the trading advantage will vanish, the conversion values on the bonds will seem impossible to achieve, and the equity value will plummet due to the burden of senior debt, especially during a severe drop in Bitcoin’s price.
Russia Imposes Six-Year Ban On Crypto Mining
In response to the significant energy usage associated with cryptocurrency mining, the Russian government has enacted a six-year ban in ten regions, effective from January 1, 2022, and lasting until March 15, 2031. This ban includes temporary restrictions during peak demand periods. It is important to note that Russia legalized crypto mining earlier this year, with the law taking effect last month. However, the use of cryptocurrencies as a form of domestic payment has been prohibited, while cross-border payments using cryptocurrency are still permitted as a means to circumvent sanctions.
Russia Using Bitcoin In Foreign Trade
Following legislative adjustments, Russia has started utilizing Bitcoin (BTC) for foreign trade and international settlements as a means to circumvent Western sanctions. These sanctions have made it difficult for Russia to conduct business with significant trading partners like China and Turkey, as banks are reluctant to process transactions associated with Russia. In response, Russia has authorized the use of cryptocurrencies in foreign trade and made cryptocurrency mining legal. Russia’s finance minister, Anton Siluanov, confirmed this shift in policy.
In the context of our experimental framework, it’s feasible that we employ Bitcoin for international trade exchanges, as we’ve mined some here in Russia. These types of trades are currently taking place, and we advocate for their growth and advancement. I am optimistic that this will happen significantly next year.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) has experienced a significant downturn since hitting an all-time high of $108,268 on December 17. In the days following, it dipped significantly, dropping below $100,000 and falling below its 20-day Simple Moving Average (SMA). As the Christmas week started, the price continued to slide, reaching a low of $82,469 on Monday before rebounding to its current level. However, traders hoping for Bitcoin’s price to surpass $100,000 were left disappointed, even after MicroStrategy bought more BTC. The downturn in Bitcoin started following hawkish remarks by Federal Reserve Chair Jerome Powell. Powell’s comments about inflation and future interest rate cuts led to a bearish market reaction, with cryptocurrencies seeing a steep decline.
There’s been a rise in trading by large investors (whales) as they adjust their investments for the coming year, leading to an uptick in market activity. Notably, Bitcoin’s drop from its record high has occurred concurrently with this surge in whale activity. Interestingly, the average transaction size for Bitcoin spiked to around $306,000 on Monday, marking the highest level since November 2022.
Following its record peak on Tuesday, Bitcoin experienced a substantial decrease on Wednesday, plummeting nearly 6% to end at $100,195. On Thursday, Bitcoin showed considerable volatility as buyers aimed for recovery while sellers tried to push prices down. Eventually, sellers prevailed, causing Bitcoin to slide from its daily high of $102,792, slipping under $100,000 and the 20-day moving average, settling at $97,703. The selling pressure continued on Friday as Bitcoin dropped to a daily low of $92,072. However, buyers stepped in, causing Bitcoin to regain slightly and settle at $98,124. On Saturday, buyers made an attempt to surpass the $100,000 mark and the 20-day moving average as Bitcoin reached a daily high of $99,942 before losing steam. As a result, Bitcoin dipped by 0.63% and settled at $97,505.
On Sunday, a strong bearish trend emerged, causing Bitcoin (BTC) to plummet by 2.26%, ending the day at $95,303. The new week started off with BTC exhibiting more volatility, reaching an intraday high of $96,530 and a low of $92,469 before closing at $94,830. However, on Tuesday, Bitcoin managed to bounce back slightly more than 4%, settling at $98,677. On Wednesday, buyers held control, pushing BTC up to $99,409, but it failed to surpass the 20-day Simple Moving Average (SMA) and the $100,000 mark. As of the current session, Bitcoin has dipped again by 1.40%, currently trading at $98,020.
Should Bitcoin continue its downtrend, it might fall to approximately $95,000. If this support level gives way, we may see a further drop down to $90,000. Conversely, if buyers regain dominance, Bitcoin could try to surpass its 20-day Simple Moving Average and aim for the $100,000 mark again.
Ethereum (ETH) Price Analysis
Ethereum (ETH) has been battling to regain its footing at around $3,500, trying to gather strength following a steep decline that pushed it beneath $4,000 earlier this week. On Monday (December 16), ETH reached a peak of $4,106 before dipping by 2.33% on Tuesday to close at $3,892. Pessimism grew stronger on Wednesday as ETH slipped below its 20-day moving average and settled at $3,625. Buyers made an effort to recoup losses on Thursday when ETH reached a high of $3,762, but they soon lost their push after reaching that level, allowing sellers to regain control. Consequently, ETH dropped nearly 6% and dipped below $3,500 to settle at $3,415. On Friday, ETH plunged beneath its 50-day moving average as it hit a low of $3,096. However, despite a bearish beginning to the day, ETH managed to rebound from that level and climb above its 50-day moving average, closing at $3,470 after an increase of 1.62%.
ETH was back in the red on Saturday, dropping almost 4% to go below the 50-day SMA and settle at $3,337. Sellers retained control on Sunday as the price dropped by 1.72% and settled at $3,279. ETH made a strong recovery on Monday, rising over 4% to move above $3,400 and settling at $3,419. Tuesday saw volatility return as buyers and sellers struggled to establish control. Ultimately, sellers gained the upper hand as ETH rose just over 2% to move past the 50-day SMA and settle at $3,491. ETH could only register a marginal increase on Wednesday as selling pressure intensified near the $3,500 resistance level. The current session sees ETH back in the red, down just over 2% and trading at $3,420.
Should sellers maintain their grip, there’s a possibility that ETH might dip down towards the $3,200 support zone. If this support is broken, it may further decline to around $3,000 before potential recovery.
Solana (SOL) Price Analysis
Since dipping below its 20-day Simple Moving Average (SMA) in early December, Solana (SOL) has found difficulty advancing beyond this mark. Negative expectations surrounding the ‘Ethereum Killer’ heightened last week when it failed to surpass the 20-day SMA on Tuesday and lost momentum following a peak of $223. A bearish trend took hold on Wednesday as SOL fell by 7.50%, slipping beneath the 50-day SMA and closing at $206. On Thursday, sellers continued to dominate as SOL fell below $200, dropping over 6% and settling at $193. The downward trend persisted on Friday, with SOL reaching a low of $175 before recovering slightly to reclaim $190, register a minor increase, and finish the day at $194.
Bearish sentiment returned over the weekend as SOL dropped almost 7% on Saturday and 0.55% on Sunday to settle at $180. However, SOL rebounded from the $180 support level on Monday, registering an increase of 5.30% and settling at $189. Buyers retained control on Tuesday as SOL rose by almost 4% and settled at $197. Sellers attempted to reclaim $200 on Wednesday but could only register a marginal increase and settle at $197. The current session sees SOL back in the red as sellers re-established control. SOL is currently down by almost 4% and trading around $189.
Bittensor (TAO) Price Analysis
Last week, Bittensor (TAO) fell below its 50-day Simple Moving Average, marking a continued downward trend that started earlier. By Thursday, TAO had plummeted to $434 before finding some support at $446. On Friday, sellers pushed it even lower to an intraday low of $400. However, buyers managed to recover and push the price up by nearly 6%, closing the day at $472. Attempts were made on Saturday to push TAO above $500 as it reached an intraday high of $507. Yet, the momentum faded, giving sellers the opportunity to regain control and drop TAO to $455, marking a decrease of almost 4%. On Sunday, sellers maintained their dominance, causing TAO to decline by 1.23%, ending the weekend on a bearish note.
This week’s trading started off strongly for TAO, surging to $484, representing a nearly 8% growth. Buyers held sway on Tuesday, pushing TAO above $500 and ending the day at $503 with a nearly 4% rise. However, sellers regained control on Wednesday, causing TAO to lose momentum following an intraday peak of $522, resulting in a minor decrease that brought it back down to $500. As of now, TAO is experiencing a drop of over 5%, currently trading at $473 with sellers aiming to push the price further towards $400.
Fantom (FTM) Price Analysis
Last week, Fantom (FTM) shifted into a downward trend, starting with a 3.03% decrease on Monday. On Tuesday, sellers continued to hold the reins, causing FTM to fall more than 5%, closing at $1.31. The bearish trend grew stronger on Wednesday when FTM dipped below its 20-day Simple Moving Average (SMA) and the support level of $1.20, reaching a low of $1.11. Attempts to regain control by buyers occurred on Thursday as FTM rose to an intraday high of $1.18, but they lost momentum at this point, resulting in another 10% drop, pushing the price below $1 and settling at $0.99. Sellers drove FTM to a new intraday low of $0.84 on Friday. However, on the upside, FTM managed to recover from the $0.84 level and move above its 50-day SMA, ending the week at $0.99.
Buyers attempted to reclaim $1 on Saturday as FTM rose to an intraday high of $1.09. However, FTM failed to stay at this level and fell back, dropping 2.44% and settling at $0.96. Sellers retained control on Sunday as FTM dropped below the 50-day SMA after a marginal decline. FTM recovered on Monday, rising almost 8% to move above the 50-day SMA and settling at $1.04. However, sellers were back in control on Tuesday as FTM fell below $1 to $0.99, but not before dropping to an intraday low of $0.90. FTM slipped below the 50-day SMA on Wednesday after dropping 3.35%. The current session sees FTM down just over 3% and trading around $0.93.
Celestia (TIA) Price Analysis
Currently, Celestia (TIA) is trading within a range of $4.90 to $5.50, aiming to maintain its position above the $4.50 support level. Last week, TIA dipped below both its 50 and 200-day moving averages and reached a low of $5.12 on Thursday. On Friday, sellers initially kept control, pushing TIA down to an intra-day low of $4.34. However, it bounced back from this point, rising by almost 2% to close at $5.22. Unfortunately, over the weekend, TIA resumed its downtrend, losing nearly 6% on Saturday and 0.51% on Sunday, ending the weekend at $4.90.
This week started with TIA surpassing $5 and climbing nearly 9%, ending at $5.32. On Tuesday, buyers maintained their grip as TIA climbed by approximately 1.08% to reach $5.38. However, on Wednesday, TIA experienced a significant drop of almost 5%, closing at $5.11. Currently, in the ongoing session, TIA is falling more than 4% and trading around $4.90.
Internet Computer (ICP) Price Analysis
On Thursday, the Internet Computer (ICP) dipped below its 50-day Simple Moving Average (SMA), losing approximately 9% to close at $10.14. The price plummeted further to an intraday low of $8.82 on Friday as traders tried to push ICP beneath the 200-day SMA, but it rebounded slightly, increasing by 4.14% and ending the day at $10.56. On Saturday, ICP experienced a decline of 4.55%, dropping from an intraday high of $11.38 to close at $10.08. The cryptocurrency fell below the $10 mark on Sunday after losing nearly 2% and closing at $9.89.
This week started off with ICP showing a 8.59% rise, reaching $10.74. On Tuesday, buyers held the upper hand as the price surged nearly 6%, going beyond the 50-day Simple Moving Average and ending at $11.34. But on Wednesday, it dipped by 1.68% to $11.15. At present, ICP is experiencing a drop of more than 5% and trading at $10.57.
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2024-12-26 20:07