A new day has begun, and cryptocurrency investors saw Bitcoin reach a local bottom about 12 hours ago. At the time of writing, the price was recovering. The fluctuation in Bitcoin’s price was not a surprise, and there were no major negative developments to worry investors. So, how are cryptocurrencies starting this Sunday?
Bitcoin (BTC)
The king cryptocurrency hit a low of $50,625 around 17:30 local time yesterday. It then surpassed $52,000 again a few hours before the daily close. This was not permanent due to profit-taking, but it’s not too significant. Weekend markets are generally low in volume, so the impact of profit-taking on prices is more pronounced.
If we start seeing strong ETF inflows again from Monday, motivation could increase. There are no major problems on the macro front, but we should not forget that the market’s excessive optimism may continue to be tempered as the halving approaches. While this could weaken risk markets, it’s not terrible for BTC due to halving expectations and ETFs.
Miners continue to sell. Their reserves have dropped to 1.92 million, but they may start to slow down sales if ETF-related demand continues to outpace the newly issued supply by 20-30 times. Although the decrease in reserves seems rapid, it’s the same as the figures at the beginning of December 2023. Miners are largely switching to accumulation during the rise and now continue profit sales to support their liquidity. This is not abnormal, especially since post-halving increased costs and decreased new BTC supply will necessitate more cash.
Current State of Cryptocurrencies
There is no massive meltdown in cumulative value, and the BTC correction did not trigger as big of a sell-off in altcoins as feared. All of this is positive. The winners of the week are SC, BGB, VET, AR, STX Coin, which gained over 44% weekly.
While the cumulative value of cryptocurrencies continues to target $2.1 trillion, volumes have shrunk by nearly 20% daily. There are no massive gainers among the top 100 cryptocurrencies. A few altcoins like ASTR and TIA are turning from their peaks, with around 10% losses. Overall, optimism continues to dominate the cryptocurrency markets. The fear and greed index is still above 70.
