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Bitcoin drops to $95K as Christmas rally loses steam |
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Key points: |
Bitcoin's Christmas attempt: BTC briefly approached the $100,000 level over the holiday before retreating to $95,000, marking a 3.1% daily decline. Interest rate impact: Rising long-term interest rates may have shifted from being a tailwind to a headwind, influencing market sentiment.
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News: Bitcoin faces post-holiday slump - Bitcoin's price action took a turn on Thursday after nearly reclaiming $100,000 during the Christmas holiday. The rally fizzled out in early Asian trading hours, with BTC declining swiftly to $95,300 at press time, down 3.1% over the past 24 hours. |
The broader cryptocurrency market mirrored Bitcoin's decline. Major altcoins like ETH, SOL, and XRP experienced losses ranging from 4% to 7%. |
Macroeconomic factors in play - Long-term interest rates have risen steadily, with the 10-year Treasury yield hitting 4.63%, close to its yearly high. Analysts suggest that the Federal Reserve's rate-cutting signals for 2025 could be driving bond market volatility. |
Jim Bianco, a macro researcher, commented that the bond market might push yields higher if the Fed persists with its current messaging. He warned that this dynamic could continue until inflationary pressures are under control. |
What's next? - Bitcoin remains up over 100% year-to-date, but market participants are cautious about potential headwinds from macroeconomic conditions. Stability in bond yields and clear guidance from the Federal Reserve may be needed to restore bullish momentum. |
For now, Bitcoin traders will be eyeing the $95,000 level as a key support zone while watching for signs of renewed strength or further consolidation. |
Bitget Token hits $6.55 as trading volume soars 10x amid bullish momentum |
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Key points: |
Record price: BGB reached a new all-time high of $6.55, rising 18% in 24 hours, supported by a 10x increase in trading volume exceeding $1 billion. Bullish metrics: The MVRV Long/Short Difference (+320%) signaled long-term holder dominance, suggesting potential for further price gains.
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News - Bitget Token (BGB), the utility token of the Bitget crypto exchange, reached an all-time high of $6.55, gaining 18% in 24 hours despite the broader market downturn. The token's trading volume surged tenfold, exceeding $1 billion, signaling strong demand among buyers and sellers. At press time, BGB was trading slightly lower at $6.40, with 100% of holders in profit. |
The token's Market Value to Realized Value (MVRV) Long/Short Difference was +320%, favoring long-term holders and indicating bullish sentiment. This metric suggests that BGB could maintain its uptrend, even with short-term retracements. |
What's driving BGB's surge? |
Increased trading activity: The 10x rise in trading volume highlights growing market interest in BGB. High volumes typically support price uptrends by confirming demand. Bullish on-chain metrics: The MVRV Long/Short Difference shows long-term holders have a significant unrealized profit advantage, reinforcing bullish momentum.
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Price prediction: What's next for BGB? |
Upside potential: The Awesome Oscillator (AO), a momentum indicator, suggests continued bullish momentum. If this holds, BGB could surpass its current peak of $6.55, aiming for $7 or even $10 in an optimistic scenario. Downside risks: Profit-taking among holders could trigger a pullback, potentially sending the token to $3.64, invalidating further bullish momentum.
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BGB's resilience amid a market downturn and strong on-chain metrics suggest it could continue its rally. However, market participants should watch for potential profit-taking, which could affect the token's trajectory. |
Brazil's proposed stablecoin ban spurs debate on decentralization |
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Key points: |
Brazil's central bank has proposed banning stablecoin transfers to self-custodial wallets, citing regulatory concerns. Industry executives argue the ban would likely shift activity toward decentralized platforms and peer-to-peer (P2P) transactions.
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News - Brazil's central bank, Banco Central do Brasil (BCB), has proposed prohibiting stablecoin transactions to self-custodial wallets, such as MetaMask and Trezor. The proposed regulation, announced on November 29, 2024, aims to curb transactions outside regulated Brazilian trading platforms. Public consultations on the matter are expected to conclude in February 2025, with potential implementation in the next year. |
The move comes amid a surge in stablecoin usage as Brazilian citizens hedge against the declining value of the real by using USD-pegged stablecoins like Tether's USDt. Industry experts suggest the proposal reflects efforts to prevent further P2P transactions and bolster demand for the national currency. |
Market impact - Carol Souza, co-founder of Area Bitcoin school, noted that Brazil's history of robust Know Your Customer (KYC) regulations and financial systems like Pix positions the country as a pioneer in crypto regulation. However, the enforcement of such a ban could be difficult. |
Lucien Bourdon, Bitcoin analyst at Trezor, highlighted that while centralized platforms could comply with the restrictions, decentralized platforms and P2P transactions are harder to control. Such a ban could slow crypto adoption by creating barriers for newcomers, but existing users may migrate to decentralized or P2P solutions, similar to patterns seen in countries like Nigeria and China. |
Industry response - Tether CEO Paolo Ardoino expressed concerns about the proposal, suggesting it could unintentionally disadvantage consumers due to Brazil's strong demand for USDt. Ardoino emphasized Tether's commitment to collaborating with Brazilian authorities to balance innovation and consumer protection. |
What's next? - If the ban is implemented, Brazil could see a shift toward decentralized solutions, echoing trends in nations with similar restrictions. The development also raises questions about how governments can regulate the evolving crypto landscape while preserving user freedoms and fostering innovation. |
Thailand explores Bitcoin payments in tourism amid regulatory challenges |
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Key points: |
Thailand's Digital Asset Regulatory Sandbox may explore Bitcoin-based tourism payments in Phuket. Former Prime Minister Thaksin Shinawatra backs Bitcoin and proposes using stablecoins for economic growth.
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News - Thailand is venturing further into the crypto space with discussions about piloting Bitcoin payments in its tourism sector. Former Prime Minister Thaksin Shinawatra, a vocal crypto supporter, has proposed using Bitcoin as part of the country's Digital Asset Regulatory Sandbox initiative in Phuket. |
"Given our country's reliance on tourism and foreign inflows, integrating cryptocurrencies into Phuket's economy could align well with Thailand's strategic strengths, potentially attracting tech-savvy visitors and investors," said Nirun Fuwattananukul, CEO of Gulf Binance. |
Despite the proposal, the Bank of Thailand currently prohibits Bitcoin for payments, making collaboration with the SEC and central bank necessary for implementation. |
Thailand's experimentation with digital currencies - The pilot project aligns with Thaksin's broader vision to embrace digital currencies. He suggested issuing stablecoins backed by government bonds to enhance liquidity. Thaksin also predicted Bitcoin could reach $850,000, urging Thailand to adapt to crypto trends for economic growth. |
However, regulatory hurdles remain. The Bank of Thailand strictly manages payment systems, while digital assets are regulated by the SEC. These entities must collaborate to enable such experiments. |
Thailand's crypto landscape - With over 21% of the population (15.43 million users) engaging in cryptocurrency in 2024, Thailand remains an active participant in the global crypto space. However, growth rates are expected to slow, with projections indicating 17.67 million users by 2028, according to Statista. |
Thailand has also dropped in the Chainalysis 2024 Global Crypto Adoption Index rankings, falling from 10th place in 2023 to 16th in 2024. |
What's next? - If successful, the Bitcoin payment pilot in Phuket could pave the way for broader crypto adoption in Thailand, especially in tourism-focused areas like Hua Hin. However, regulatory challenges must be resolved to balance innovation with compliance. |
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More stories from the crypto ecosystem |
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Interesting facts |
The first Bitcoin ATM was installed in 2013 in Vancouver, Canada, allowing users to exchange cash for Bitcoin and vice versa. Since then, Bitcoin ATMs have spread globally, with over 35,000 installed worldwide, making Bitcoin more accessible to the public. In 2020, the Bitcoin network saw a steady increase in transaction volumes, with some days approaching 300,000 transactions. This growth showcased Bitcoin's expanding popularity and utility as a medium of exchange, solidifying its position as a widely used and scalable digital asset. Cryptocurrency mining is contributing to a reduction in electronic waste by repurposing older hardware, such as used gaming graphics cards, in some mining operations to reduce costs. However, the mining industry's overall environmental impact, including e-waste, remains a subject of debate due to its high energy consumption and the rapid obsolescence of mining hardware.
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Top 3 coins of the day |
Bitget Token (BGB) |
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Key points: |
At press time, BGB was trading at $7.27. It gained approximately 25.28% over the last 24 hours, making it the biggest gainer and one of the top trending cryptocurrencies according to CoinMarketCap.
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What you should know: |
The daily chart for BGB revealed a robust bullish trend. The price consistently traded above the SMA 9, indicating strong upward momentum. Moreover, the RSI was at 90.96, placing it firmly in the overbought zone, suggesting heightened buying pressure. This could lead to a potential short-term correction if the rally cools down. Volume saw a significant surge, reflecting growing market interest and increased trading activity. This volume uptick supported the ongoing rally and highlighted strong market participation. Key levels to monitor include a resistance at $8.00, which represents a psychological barrier where profit-booking could occur. On the downside, support levels are observed at $6.50 and $5.80, which, if breached, may signal a trend reversal or consolidation phase. While the token shows strong bullish signals, caution is advised due to the overbought conditions indicated by the RSI. |
Curve DAO (CRV) |
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Key points: |
At press time, CRV was trading at $0.93, registering a significant decline of 8.96% in the last 24 hours. According to CoinMarketCap, it was the biggest loser of the day.
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What you should know: |
On the daily chart, CRV experienced a sharp bearish trend. The price dropped below the midline of the Bollinger Bands, signaling increased selling pressure. The Bollinger Bands widened, indicating heightened volatility in the market. Moreover, the MACD histogram showed red bars below the zero line, suggesting strong bearish momentum, while the MACD line continued its downward slope, remaining below the signal line. Volume increased significantly, highlighting strong market activity. This spike in volume alongside the bearish price movement reflected intensified selling pressure. Immediate support is at $0.85, while resistance is at $1.02, the upper Bollinger Band. A break below the support could see the price testing lower levels near $0.80, while a reversal above resistance could signal a potential recovery. |
Stargate Finance (STG) |
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Key points: |
At press time, STG was trading at $0.37, experiencing a decline of approximately 6.08% over the last 24 hours. It was among the top trending tokens, as reported by CoinMarketCap.
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What you should know: |
The daily chart for STG indicated heightened volatility. The price was trading below the midline of the Bollinger Bands, signaling bearish pressure. Moreover, the widening of the upper and lower bands further highlighted increased market volatility. The Awesome Oscillator (AO) remained in the negative territory, reflecting weak bullish momentum. Also, the recent red histogram bars suggested ongoing selling pressure, which needs to be counteracted for any potential recovery. Volume spiked, indicating active trader participation during the downturn, potentially driven by profit-taking or increased bearish sentiment. Traders should watch the $0.35 level as a key support zone. A sustained drop below this level could lead to further declines, while the resistance at $0.44 may act as a ceiling for any recovery attempts. The token's trending status suggests it remains on the radar of market participants, making its short-term movements critical for both buyers and sellers. |
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