Categories: Crypto Review

The crypto market loses some spark

Market Picture

The cryptocurrency market cap is up 0.3% in 24 hours to $ 3.09 trillion. This slight increase masks an impressive altcoin pullback that failed to cap the 1% rise in BTC. However, sentiment indicators remain in extreme greed territory. Solana is down 3% overnight and around 6% from Tuesday’s high. Litecoin has pulled back 14% from Saturday’s high and is a few steps away from $100.

Bitcoin climbed close to $94K on Tuesday night, updating all-time highs. Unlike last week’s attack, the new highs were not followed by stop orders and margin calls from shorts. Instead, they moved into the $100K-plus area.

Like Litecoin, Ethereum is becoming a boring story. The rally in early November stopped just short of an overbought level, with profit taking at 61.8% of the initial momentum—significantly deeper than Bitcoin and the broader crypto market. Such an adherence to classic technical analysis may be convenient for traders, but it is hardly to the liking of enthusiasts, who have probably moved on to other altcoins.

News Background

In another recalculation, the difficulty of mining Bitcoin exceeded 102T for the first time in history. The average hash rate for the two-week calculation period rose to 755.3 EH/s.

According to JPMorgan, the hash price, a measure of Bitcoin mining profitability, rose 29% in the first half of November. The rally in BTC ahead of the hash rate increase and the increase in transaction fees as a percentage of block reward contributed to the significant improvement in mining economics.

MicroStrategy plans to issue a $1.75 billion five-year bond to be used for BTC acquisitions and general corporate purposes. The company’s reserves have reached 331,200 BTCs, on which it has spent ~$16.5 billion at an average purchase price of $49,874 per coin.

QCP Capital believes the ‘real altcoin season’ will begin after the bitcoin dominance index falls to 58% vs 59.4% now. Before that, by the end of the year, BTC could break through the psychologically important $100K mark.

According to the Financial Times, the Donald Trump-linked Trump Media and Technology Group (DJT) is in the advanced stages of a deal to buy struggling platform Bakkt.

The FxPro Analyst Team

The FxPro Analyst Team

Our team consists of financial market experts. Our dedicated professionals prepare reviews on the foreign exchange market situation, Crude Oil, Gold and Stock Indices. All the analysts are regularly published in the world leading economic media.

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