Bitcoin Slips Under $47,000 Amid Broader Market Correction
The broader crypto market has entered a deeper correction on Monday losing another $150 billion of investors’ money. The recent market correction comes as the equity and crypto market fall ahead of the Fed commentary of Wednesday, December 15.
During its upcoming meet, the Federal Reserve is most likely to announce the tapering of its stimulus program and its bond-buying program. This effectively means that the Fed will limit the availability of “easy” money which has ultimately put pressure on volatile assets like equity and crypto as investors are in search of safe-haven options.
The world’s largest cryptocurrency Bitcoin (BTC) tanked under $47,000 levels on Monday. With this, it has corrected more than 33% from its all-time high of $69,000 last month in November.
While Bitcoin has corrected significantly, some of its on-chain indicators continue to show strength. As per data provider Santiment, the Bitcoin supply at the exchanges has dropped to a 31-month low.
The data provider stated: “Bitcoin’s supply on exchanges hasn’t been this low in 31 months. Prices have been volatile as of late, but the lack of $BTC moving to exchanges right now is a positive sign that major selloff risk should be limited”.
Bitcoin BTC Exchange Supply (Courtesy: Santiment)
During the recent price correction, the Bitcoin futures long positions have been flushed making a complete reset which is a good sign. Also, signs of ‘buy the dips’ have emerged.
Just as the Bitcoin price dropped to a low of $46,500, the BTC/USD bids have been gaining traction on the Bitfinex crypto exchange. Zen, a popular crypto analyst profile on Twitter calls its ‘sell the rumors, buy the news’ kind of event.
Bitfinex BTC/USD Bids (Courtesy: Zen)
Popular crypto analyst Will Clemente notes: “Think FOMC has a good chance to be a ‘sell the rumor, buy the news’ event. Pair that with illiquid supply back at yearly highs and some large Bitfinex bids coming in. Just waiting for $53K to start bidding. Happy to miss some of the move and essentially pay for confirmation.”
Altcoin News: Ethereum (ETH) Tanks Under $4,000, Dogecoin (DOGE) Gains 32%
As part of the broader market correction, the world’s second-largest cryptocurrency Ethereum (ETH) has also corrected 5% on Monday slipping under its crucial support levels of $4,000.
As of press time, Ether (ETH) is trading at a price of $3,841 with a market cap of $452 billion. There’s been an interesting correlation between the top-ten Ethereum whale addresses on exchanges and the top 10 largest non-exchange addresses.
On-chain data provider Santiment reported: “The 10 largest #Ethereum addresses on exchanges hold a cumulative 3.82M $ETH, which is the lowest level since exodus. Meanwhile, the top 10 largest non-exchange addresses hold a cumulative 24.78 $ETH, closing in on the 26.63 $ETH #ATH in June, 2016”.
Ethereum ETH Non-Exchange Whale Addresses (Courtesy: Santiment)
All of the other top-ten cryptocurrencies have corrected anywhere between 5-10% as of press time except for Dogecoin.
The meme cryptocurrency Dogecoin (DOGE) has received a major boost from Tesla chief Elon Musk who recently tweeted that Telsa will consider selling some of the merchandise while accepting payments in DOGE.
The DOGE price has shot up to more than 30% post that. As of press time, DOGE is trading at a price of $0.22 with a market cap of $26.3 billion. During his interview with TIME Magazine on Monday, Musk stated that Dogecoin is a better payment option than Bitcoin, as a transactional currency.
“Fundamentally, bitcoin is not a good substitute for transactional currency. Even though it was created as a silly joke, dogecoin is better suited for transactions. [T]he transaction volume of bitcoin is low, and the cost per transaction is high,” said Musk.
Crypto Market News: Nike Enters Into Metaverse and NFTs, Binance Opts Out of Singapore
Big brands continue to enter into the lucrative world of Metaverse and NFTs and the latest to join is Nike. On Monday, Nike announced the acquisition of RTKFT Studios that focuses majorly on building sneaker-themed non-fungible tokens (NFTs) and collectibles on the Ethereum blockchain network.
The recent acquisition of RTKFT Studios seems to be a masterstroke for Nike. It will help Nike set up a strong footprint in the blockchain-based branding and the Metaverse.
Zero-fee crypto trading platform Robinhood is entering into a major partnership with blockchain security firm Chainalysis ahead of the launch of its “crypto wallet” in early 2022. As part of the partnership, Chainalysis will be providing Robinhood with essential data and tools for trading purposes. Besides, Robinhood shall also be using use Chainalysis’ Know Your Transaction (KYT) and Reactor software for managing compliance.
Justin Kan, the co-founder of the video game live-streaming service Twitch, announced the launch of Solana-based NFT marketplace Fractal. The new platform will focus on opportunities in the gaming space as well as in the play-to-earn titles.