Saturday, December 2, 2023

Market Watch Jan 16: Bitcoin Crosses $21,000 Mark Amid Falling Inflation.

Bitcoin is finally back in the game, having cracked the $21,000 mark in early weekend trading for the first time since early November 2022. The much-loved cryptocurrency was trading at $21,149, up by 1.87% in the last 24 hours. According to data from CoinMarketCap, Bitcoin gained 22.64% in the past seven days.

Ethereum, the second-most popular cryptocurrency, up by 2.84% was holding at $1,572. It gained nearly 20% in the past seven days. The altcoins are also flashing bright green. Shiba Inu is the biggest gain. The meme coin is up by 5.63% in the last 24 hours. Polygon gained 5.33%, Cardano 3.79%, XRP 2.96%, Avalanche 2.45%, and Polkadot 1.17%.

Mark Connors, head of research at 3iQ, said the current rally in digital assets is a market reversal and NOT a bear market rally. He outlined that an early January rally in altcoins, including SOL, had rolled into core Layer 1s. Connors believes the potential for reduction in hikes and balance sheet reduction was a wink that the sharp reduction in the money supply may be ending. He highlighted that the reduction over the past 12 months was the largest since 1959. Connors regarded it as relevant to digital assets as Bitcoin is deemed a hedge against debasement, not inflation.

Chris Burniske, former head of crypto at ARK Invest, believes the bears will be caught in the vicious cycle of praying for pullbacks to go lower, not realizing the tides have shifted for a time. But Lemon, a popular crypto commentator, said BTC price would fall, highlighting Bitcoin sentiment and price heading for macro lows. Il Capo of Crypto described the price surge as one of the biggest bull traps he has ever seen. He said the bearish scenario hasn’t been invalidated. The analyst congratulated those who have profits and advised them to protect the profits.

All for the test.

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