The cryptocurrency market is experiencing a bearish trend at the beginning of the week, with several currencies seeing moderate declines. Bitcoin, which had reached levels around $38,500 due to bullish activity on Friday, has undergone a correction of several percentage points. Similarly, Ethereum retreated from its yearly high of $2150. Short-term investors who have held BTC for less than 155 days have enjoyed almost 15 percent average gains, historically indicating heightened short-term selling pressure and preceding corrections, as per Glassnode’s analysis.

Interestingly, J.P. Morgan believes that the recent settlement of Binance with the US Department of Justice has positive implications for both the exchange and the overall crypto market. The investigation into the leading cryptocurrency platform did not uncover any concerns regarding liquidity or user funds, diminishing the likelihood of a ‘second FTX’ scenario in the eyes of the market.

Recent on-chain data suggests that long-term investors have been selling slightly more than usual, and the critical trading range between $35,300 and $36,000 is deemed pivotal for Bitcoin’s momentum. December has traditionally been a successful month for Bitcoin, yielding an average return of 12%. This could hint at prices approaching new heights by the end of the month. However, the situation remains uncertain, and any significant news event could have significant repercussions on the cost of Bitcoin and the entire cryptocurrency market.