After hitting a milestone of $69,000 over the past few days, the cryptocurrency giant, Bitcoin (BTC), has been on a big volatile market, breaking its psychologically important support of $60,000 due to a few bad news.
On the 18th (local time), Cointelegraph, a media specializing in cryptocurrencies, said, “On the 12th, the US Securities and Exchange Commission (SEC) rejected VanEck’s application for a spot bitcoin exchange-traded fund (ETF), and on the 15th, “Bitcoin price fell below $60,000 as U.S. President Joe Biden approved an infrastructure bill that would require all digital asset transactions over $10,000 to be reported to the Internal Revenue Service by 2024.”
“Bitcoin bulls (buyers) were extremely euphoric on Nov. 10 when the price soared to $69,000. In fact, with a 14.5% gain accumulated over 5 days, 7 on the option expiry date of Nov. “But the 9% negative price movement on November 16 surprised the bulls as most of the call options on November 19 were placed above $66,000. “He said.
“On the November 19 option expiry date, the only way for bulls to make a significant profit is to raise the price of Bitcoin above $64,000, a 6% jump from the current $60,400. But given the current negative sentiment, Bitcoin As the price is expected to remain close to $58,000, the bears (selling forces) could apply some pressure and make up to a profit of up to $220 million.”
In fact, the current options market data is slightly favoring put options, reducing the likelihood of a rally ahead of the 19th of November, the media added.
Another cryptocurrency-specialized media outlet, CoinDesk, analyzed that altcoins are attracting attention and that Bitcoin and Ethereum are losing momentum. Also, if the Fed raises rates faster and accelerates its response to inflation, it will dampen Bitcoin’s attractiveness and dampen risk asset momentum.
Edward Moya, senior market analyst at online forex trading platform Oanda, said: “The long-term outlook for Bitcoin remains strong, but over the next few months, institutional investors will be skeptical about whether the Fed will raise rates and trigger the sale of risky assets. It will be a tough market with attention.”
However, Cointelegraph said, “Bitcoin whales (big-handed investors) seem to see the recent decline as a buying opportunity. Real on-chain data shows that the third largest Bitcoin whale is 207 with an average price of around $62,053 per Bitcoin. We have added 2 bitcoins to our holdings,” he said, arguing that the current bear market could be a buying opportunity.
In this regard, according to the Twitter account Watcher.Guru, 1,647 BTC flowed into the BTC wallet (1P5ZEDWTKTFGxQjZphgWPQUpe554WKDfHQ), which holds the third most assets outside of exchanges the day before. The average purchase price is $59,888. Earlier on the morning of the 16th, 207 BTC had flowed into the wallet, and a total of 2,977 BTC had flowed in over the past 5 days. The total assets currently held by the wallet are 110.175.56 BTC.
Meanwhile, the world’s largest cryptocurrency, Bitcoin (BTC, No. 1 in market cap), is recording about $60,532 based on CoinMarketCap as of 10:10 am on November 18 (Korean time). This is 0.96% higher than 24 hours ago. Currently, the market capitalization of Bitcoin is $1.14 trillion, and its dominance is 43.1%.