Market picture
Crypto market capitalization was near $1.42 trillion on Monday morning, roughly where we saw it a week earlier. Failure to build on the growth at the end of last week caused moderate pressure on prices across a wide range of coins.
For example, the Bitcoin exchange rate was pulling back to $37.0K, remaining within an uptrend for over a month now, with the lower boundary at $36.6K and the upper limit at $38.3K. Only a decline below the lower limit will question the sustainability of the uptrend. Until then, the prevalence of buying on reductions in the major cryptocurrencies is very likely.
As a result of another recalculation, Bitcoin mining difficulty increased by 5%. The index reached an all-time high at 67.96 T. The average hash rate for the period since the previous change in the value was 486 EH/s. According to CryptoQuant data, selling pressure from miners is at its lowest since 2017. Meanwhile, 82% of Bitcoin holders are in profit, and only 15%.
Ethereum failed to hold above $2100 levels for the third time this year. Before that, there were attempts in April and early November. The second most crucial cryptocurrency rolled back to $2050, which does not look scary yet but sets up for increased pressure in the short term.
News background
The US Commodity Futures Trading Commission (CFTC) has warned crypto exchanges that it will aggressively pursue crypto platforms operating in the US market if they seek to circumvent the CFTC’s customer protection regime.
The surge of interest in spot bitcoin ETFs amid the wait for US regulatory approval could attract up to $70bn of new capital into BTC. The forecast assumes that 10 percent of the money currently invested in mainstream stock and bond ETFs will move into bitcoin ETFs.
The outflow from the GBTC fund, when converted to a spot ETF, would be $2.7bn, JPMorgan forecasts. GBTC fund shares were previously sold at a discount, and after conversion, their price should equal the cost of BTC. At the same time, many traders will decide to lock in profits, putting pressure on the worth of the first cryptocurrency.
Crypto analyst Dan Gambardello suggested that during the next bull rally in the crypto market, Cardano (ADA) could rise to $11, thanks to the growth of Bitcoin. ADA’s growth will also be helped by the growing decentralized finance (DeFi) ecosystem, which uses Cardano’s blockchain. According to Gambardello, Cardano has an advantage over Ethereum regarding reliability, security, and decentralization.
ECB President Christine Lagarde, who often criticizes cryptocurrencies, admitted that her son invested in digital assets but failed to guess the trend and lost almost all his invested money.