The positive market sentiment has been put to a halt with the drop in BTC & ETH prices. Meanwhile heated debate erupted in the Bitcoin community involving core developers. Binance doesn’t seem to be doing fine either. But if there is one thing us crypto folks do well, we keep faith. 💡
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Bull or not bull? Bitcoin drops when all eyes on BTC at 100k 🧐
Amid the chants of “BTC to the moon” and the hopeful upswing of the market, things have taken a rather unexpected turn. The market cap and prices of cryptocurrencies took a sharp dip today. Let’s see what happened and what might’ve caused it.
🧍 The market cap plummets 5%
Our favourite cryptocurrencies took a big hit, interrupting eight consecutive weeks of bullish trends.
Bitcoin tumbled from the $44k mark to $41k, a decline of roughly 6.09%.
Ethereum dropped from approximately $2380 to $2170 parallelly, a decrease of about 8.82%.
💼 What caused this decline?
Let’s try to decode the potential factors behind this sudden change in the market.
A spike in open interest can indicate increased trading activity, often leading to profit booking when the market appears overextended.
There’s been a noticeable drop in Bitcoin miner reserves since Oct’23, suggesting a heightened selling activity. The same month, publicly traded Bitcoin mining companies sold a significant part of their mined digital assets.
JPMorgan Chase CEO Jamie Dimon recently stated that he would shut down the industry if he were in government. He argued that cryptocurrencies are mainly used for illegal activities, which might have contributed to the downturn in crypto prices.
❓ Okay, now what?
While the public sentiment says it's the start of a bull run, the market is acting differently. But, there might be some merit to the feelings.
BTC and ETH fell, but they have been slowly climbing back.
In simple terms, when the daily Relative Strength Index (RSI) is too high, it often means the market is overbought, leading to a peak as buyers reduce and sellers increase. After the recent sell-off, the RSI dropped to 63, indicating the market is no longer overbought.
According to Bloomberg analyst James Seyffart, the SEC is potentially lining up to approve all bids for a spot market Bitcoin ETF in January.
👀 Volatility, the inherent nature of crypto
All we can do right now is brace for heightened volatility in the coming days. It's crucial to trade cautiously and remember the golden rule of investing: never invest more than you can afford to lose.
What are your thoughts on this market drop? Do you think a bull is coming, or should we keep our heads down and trust? Let us know in the comments below. 🤔👇
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In collaboration with Tether, El Salvador launched the "Adopting El Salvador Freedom Visa Program". It's a groundbreaking move to attract high-net-worth individuals and investors, focusing on technology, culture, and societal progress. The program offers citizenship for a $1M investment in Bitcoin or USDT, emphasizing El Salvador's commitment to cryptocurrency.
Changpeng Zhao, known as "CZ", the founder and former CEO of Binance, the world's largest crypto exchange, has been ordered by US District Judge Richard Jones to stay in the US. This order comes amid a criminal case against him, with concerns about potential flight risk. The Justice Department has accused Binance of inadequate anti-money laundering measures, leading to its misuse by terrorists. CZ faces a sentencing hearing and potential prison time early next year.
A heated debate erupted in the Bitcoin community involving core developer Luke Dashjr and Samourai Wallet. The discussion centred on allegations against OCEAN, a decentralized Bitcoin mining pool, of wanting to censor Bitcoin transactions, specifically coinjoin transactions. Coinjoin is a method that enhances privacy by amalgamating multiple transactions into one, making it difficult to trace individual inputs. The debate intensified with accusations against Jack Dorsey and further controversy over Ordinals, leading to broader questions about censorship and privacy tools within the Bitcoin ecosystem.
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Let’s get into Posty’s fresh pecks from the world of web3!
🇮🇳 India's Legislation Delay: The introduction of a crypto or Web3 bill in India is postponed until mid-2025. This decision reflects the need to balance innovation with regulatory safety and align with global standards.
🌍 Binance's UAE Exit: Binance, a global crypto exchange, withdraws from the UAE as part of its worldwide restructuring strategy under new leadership.
💱 Societe Generale's Stablecoin: The banking giant Societe Generale leads the traditional banking sector into blockchain by issuing an ERC20 stablecoin.
💬 Coinbase's Messaging Integration: Coinbase now allows users to send cryptocurrencies through popular messaging apps like WhatsApp and TikTok, simplifying digital transactions.
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Disclaimer: The content in this newsletter is for informational and educational purposes only and is not intended as financial advice. We do not offer personalized investment advice. The crypto and web3 sectors are highly volatile and risky, so please do your own research and consult a financial professional before making any investment decisions.
