The recent recent price for Bitcoin (BTC) between $ 94,000 and $ 100,000 perplexed many market players.
While the largest cryptocurrency historically shows solid directional movements followed by consolidations of several months, known as the price movements of the staircase, this time feels different. Usually, consolidations are followed by an escape. On the other hand, the range has narrowed. In December, it was $ 90,000 to $ 110,000.
Participants of last week’s consensus, Hong Kong, shared the feeling, with eminent markets and industry figures suggesting that the rampant frenzy of the same is a key reason behind the BTC and the Altcoin market wider, which resembles the ten -year -old dull prices action of seven years ago.
“The market was very saturated with same launches, and the native crypto are a little exhausted by this,” said Evgeny Gaevoy, CEO of the main Wintermute market manufacturer, at the conference.
Tokens such as Trump of President Donald Trump and the balance token promoted by Argentinian president Javier Milei tends to draw liquidity from more established cryptocurrencies, said Gaevoy, the merchants buying those at the expense of others pieces.
Such a stagnant behavior at the BTC price recalls September-October 2018, when the range has tightened in successive weeks, finally regulating between $ 6,000 and $ 6,400.
This is not a completely parallel situation, however. This occurred during a lower market, following a sharp drop in the record Record of Bitcoin of almost $ 20,000, which makes the range a little justifiable as investors’ confidence has decreased. This time, BTC is only about 12% below its top of all time.
Same presidential
Three days before its inauguration of January 20, Trump started his official token, Trump, who reached a market capitalization of more than $ 12 billion in just 48 hours. Its descent was just as fast and the market capitalization crashed at nearly $ 3 billion at the beginning of the month, Coingecko data show.
What is interesting is that the total market capitalization of cryptography has remained largely unchanged at nearly 3.5 billions of dollars during the boom-bust cycle. It is a sign that the same did not do much to draw new capital on the market. In other words, money has just migrated BTC, Solana soil and other rooms.
In addition, while some portfolios that invested at the start have earned a lot of money, around 800,000 lost a total of $ 2 billion by selling at a loss or detention as prices collapsed, according to Chainalysis.
Something similar was played during the balance of the balance at the beginning of the month, which destroyed $ 251 million in investors’ money and has become a net wealth strait for the cryptography market.
This is probably why the founder of Abraxas Capital Management, Fabio Frontini, said that same should be prohibited. He spoke during a quick round during the Wall Street “Views Views in Crypto” during consensus.
Jason Atkins, commercial director of Auros, said that the fact that even aspires the liquidity of other market sectors shows how fragile the liquidity pool is.
“It is clear that adoption is still at an early stage,” said Atkins in an interview. “The number of participants remains relatively low, and the fact that a launch of high -level tokens can send shock waves throughout the market shows how fragile the liquidity pool is. It is a clear signal that the wider market has no sufficient depth and stability. “
These are key requirements to attract more institutional interest, he said.
“Institutional investors actively explore how they can get involved in this space. But they are cautious. They need to see a more mature stable market which can manage larger volumes without being disturbed by a speculative activity and focused on the same . “
Bitcoin management
The opinions were mixed on what is then happening for the price of the BTC.
Several consensus delegates have declared that the frenzy of the same and the strange stability in BTC are unhealthy. These range games often end with a downward movement, they said. This is what happened in 2018, when consolidation ended with a sharp decline.
On the other hand, the same saturation eclipses positive news on the regulatory front, said Gaevoy de Wintermute.
“People do not necessarily appreciate that we have a lot of positive news to come. For example, on the regulatory side, we have all forgotten how an influence of the dry and even the CFTC was during the last years and now that Overtplumb is completely gone.
Altcoin Etfs?
The regulatory environment includes the change in the US administration and the exit of Gary Gensler from Securities and Exchange Commission.
A certain number of issuers have now filed for requests for dry for the funded funds (ETF) linked to the ground, XRP, Dogecoin (DOGE) from Solana (DOGE) and Litecoin (LTC).
To date, the regulator has only approved Bitcoin and Ether ETF, assuming that the CME monitoring system for bitcoin and future ether attenuates concerns about price manipulation. If the term contracts on CME are considered to be a prerequisite for gaining approval of ETFs linked to digital assets, it should be noted that wider altcoins do not yet have this privilege.
Gaevoy does not agree.
“It is a relic of the previous leadership of the dry. I would certainly not be surprised if Solana and other tokens excluding the stablecoins are approved,” he said.
