Cryptocurrencies Experience Gains Following Profit-Taking
Major cryptocurrencies saw some gains on Tuesday evening after a period of consolidation and profit-taking over the weekend. Bitcoin, Ethereum, and Dogecoin all experienced positive movements.
According to data from Paris-based Kaiko, selling pressure has been focused on Binance, OKX, and Upbit by trading volumes. This selling pressure comes in the wake of the introduction of spot exchange-traded funds (ETFs) in the U.S., which has put pressure on Bitcoin.
In a notable development, the Grayscale Bitcoin Trust transferred 8,730 Bitcoin, valued at over $376 million, to Coinbase Prime deposit addresses. This suggests that the fund may have been compelled to sell a portion of its Bitcoin due to a decline in its share price.
The top gainer in the past 24 hours was Klaytn, which saw a gain of 20.83%. Chiliz and Beam were also among the top gainers, with gains of 19.13% and 11.97% respectively.
The global cryptocurrency market cap now stands at $1.68 trillion, showing a 0.28% increase in the past 24 hours.
In contrast, the S&P 500 concluded with a 0.37% decrease, while the Nasdaq Composite dropped by 0.19%. The benchmark 10-year Treasury note yield also surged, following remarks by Federal Reserve Governor Christopher Waller suggesting a potential slower pace of monetary policy easing.
Looking ahead, investors are awaiting the release of December retail sales data, which could impact concerns about economic growth and a potential downturn.
Cryptocurrency analyst Michael Van de Poppe predicts a probable scenario for Bitcoin, foreseeing a potential rejection at $46,000, followed by a correction to below $40,000. He suggests that this could cause negative sentiment and FUD (fear, uncertainty, and doubt) in the market, but also presents a buying opportunity.
Benjamin Cowen, another crypto analyst, revises his outlook on Bitcoin in light of growing investor anticipation of a potential reversal in the Federal Reserve’s tight monetary policies. He notes that while rate cuts can be bullish for risk assets, they can also have a negative impact.
Daan Crypto Trades reports that there are no significant anomalies in the current Bitcoin order books, but highlights two notable big walls at around $50,000 and $37,000.
On the Ethereum front, on-chain analytical firm Santiment reveals that Ethereum’s price dominance against Bitcoin has surged by +22.4% in just a week. Additionally, there has been a significant increase in the creation of new ETH addresses, signaling a move towards self-custody and staking. The supply of Ethereum on exchanges is also nearing its historical low, indicating a reduced risk of a potential selloff.
Overall, the cryptocurrency market continues to see fluctuations and investors are closely monitoring various factors that could impact prices and market sentiment.
