Bitcoin tests $100K again

Market picture

The cryptocurrency market lost 3% in 24 hours amid a sell-off in financial markets following comments from the Federal Reserve. Capitalisation fell to $3.51 trillion, and at the low it dipped below $3.48 trillion – its lowest in more than a week. The Cryptocurrency Fear and Greed Index fell to 75, also hitting lows since 11 December.

Bitcoin is once again testing the $100,000 level, this time making attempts to dip below that round level. While the magnitude of bitcoin’s decline is comparable to that of stocks, it is seen as a show of strength, as bitcoin often loses more. Over the past five and a half weeks, an upward trend has formed, and Bitcoin has fallen sharply from the upper to the lower boundary, where it seemingly attracts some interest. A trend breakdown can only be confirmed with a break of the 50-day moving average, which is now through $91,700 but heading to $94,000 by the end of the week.

News Background

Bitcoin’s parabolic growth phase is just around the corner, a Rekt Capital analyst believes. Historically, such periods last about 300 days, and so far 41 days have passed.

19% of Americans have used, traded or have an interest in cryptocurrencies, an Emerson College national survey for December showed. About 26% of men and 13% of women said they have interacted with digital assets.

The state of Ohio has entered the bitcoin reserve race. A bill to create one has been submitted to the state House of Representatives for consideration.

According to CoinDesk, the chairmen of the Senate Banking Committee and the US House Financial Services Committee, Tim Scott and French Hill, will focus on considering cryptocurrency-related bills in 2025.

Deutsche Bank will launch a layer 2 (L2) solution for Ethereum powered by ZKsync to improve efficiency and make transactions cheaper.

The Australian Securities and Investments Commission (ASIC) has accused Binance of breaching consumer rights by trading risky derivatives, resulting in large losses.

The FxPro Analyst Team