Market picture
The
cryptocurrency market capitalisation remained near $1.127 trillion as attempts
to develop growth came up against selling pressure near $1.14 trillion. The top
cryptocurrencies over the past 24 hours have ranged from a 0.7% decline
(Solana) to a 5.6% rise (XRP), while Bitcoin is losing 0.3% and Ether is rising
by the same amount.
One can
discern a moderately upward trend on Bitcoin’s intraday charts, but it’s worth
noting that the price is failing to push up from that local support, which now
passes near $27K. Investors and traders should be prepared for a price decline
into the $25K area, as the market seems set for a full rally correction from
the November lows.
Despite the
Bitcoin network’s continued rise in transaction volume, the number of active
addresses has fallen to 764K – its lowest since July 2021. Due to the hype
around BRC-20 and Ordinals tokens, the average transaction fee on the
blockchain rose from $2.5 last year to $16.08 at the peak. The situation is to
the benefit of Bitcoin miners, who are getting more commission on transactions
than from mining for the fifth time in history (6.25 BTC), Glassnode noted.
News background
Bernstein
Research expects lower US interest and bank deposit rates will spur public
interest in Ethereum-stacking, which generates more interest income. In turn,
it could start a new bullish trend in the crypto market.
According to
Bloomberg, the appeal of Bitcoin and other cryptocurrencies will decline as US
crypto policy tightens and default risks increase.
During the
trial of a lawsuit filed by exchange Coinbase, US Securities and Exchange
Commission (SEC) officials said drafting laws to regulate cryptocurrencies will
take years. In the meantime, fines will “come down”. The SEC called
Coinbase’s lawsuit “unfounded”.
The number
of transactions on the Dogecoin network has surpassed that of Bitcoin and
Litecoin. The community speculates that this momentum is due to activity around
DRC-20 tokens, which enable the creation of new digital assets on top of the
blockchain.
This article was written by FxPro’s Senior Market Analyst Alex
Kuptsikevich.