Naeem Aslam
Zaye Capital Markets
Cryptocurrencies
It seems like the bears have taken control of the crypto markets as Bitcoin, the king of cryptocurrencies, fails to breach the crucial $50,000 level. It tumbled as much as 8.40% yesterday to $45,773. The research note by CompareBroker shows that December is actually a month when you do see higher volatility for the Bitcoin price. According to their research, in December, BTC’s volatility has been up nearly 86% for the last 10 years hence it is kind of normal if we continue to see bigger whipsaws for the BTC price during this month.
As for the current BTC’s price action, the drop in Bitcoin prices on Monday pushed the digital coin below its 200 days average which is negative news for crypto enthusiasts. Similarly, Bloomberg Galaxy Crypto Index dropped about 7.40% which shows that sentiment in broader crypto markets has taken a hit.
The current price movement of cryptocurrencies refutes the premise that the blockchain ecosystem has fully matured, resulting in less severe market volatility in the future. This, however, does not appear to be the case. Similarly, some investors perceive digital currencies to be an inflation hedge, and rising consumer prices helped to strengthen crypto markets last week to some extent. Crypto markets, on the other hand, were unable to maintain the surge.
The information is purely for education purposes only and cannot be perceived as an advise.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.