Bitcoin Stable at $17k – Is the Bottom Finally In? Experts take
- Bitcoin miners have reported liquidating both old and newly minted coins, according to onchain data.
- However, the cryptocurrency and blockchain market has become more resilient in recent days following the FTX implosion.
Bitcoin price retests $17k today on Wednesday as calm brings high volatility before fiscal year 2022 ends in a few weeks. Global geopolitics continue to directly impact cryptocurrency prices, fueled by FTX and Alameda’s explosion. Bitcoin price has held between $16,800 and $17,196 for the past seven days, with minimal outliers.
Following Fed Chairman Jerome Powell’s speech last week, which indicated possible rate hikes in the coming quarters, the Bitcoin price fell from its recent lows of $15,761 to trade at around $17k. As such, market strategists expect Bitcoin to react significantly to macroeconomic factors.
“The positive market response to Powell’s speech suggests that macro conditions will continue to play a significant role in BTC’s price discovery going forward,” Arcane Research, which provides analysis of digital asset trends, wrote in a newsletter on Tuesday.
As the temporary relief in the Bitcoin price is retested, analysts are arguing about the extent of the current bear market. For example, Europa.com Chief Economist and Global Strategist Peter Schiff believes that the Bitcoin price is capturing future liquidations.
Don’t make the mistake of believing that #Bitcoin forming a floor at $17K. It forms the next roof. During this bear market, every time Bitcoin takes another leg down, it consolidates its losses before lowering the next leg. These landings are not bottoms. They are trap doors.
— Peter Schiff (@PeterSchiff) 6 December 2022
Bitcoin miners have reported liquidating both old and newly minted coins, according to onchain data. Nonetheless, some long-term Bitcoin holders have been reported to have stashed more coins, including MicroStrategy Inc. and El Salvador.
According to Coinglass statistical data, approximately $75,073,434 has been liquidated in the last 24 hours from global cryptocurrency exchanges. Reportedly, the most significant single liquidation order occurred on the OKX crypto exchange, involving a BTC-USDT swap – worth $1.68 million.
Bitcoin Market and Cryptocurrency Outlook
However, the cryptocurrency and blockchain market has become more resilient in recent days following the FTX implosion. Furthermore, several financial institutions, including traditional banks such as JPMorgan, have announced interest in exploring the cryptocurrency market. Nevertheless, the recent revelations – that Silvergate Bank was significantly involved in the FTX trading business – have raised global regulators’ oversight of financial markets.
As such, retail cryptocurrency traders wonder how secure their digital assets are with the current Web3 protocols.
In particular, the cryptocurrency market has shown its prowess with the ongoing World Cup competition in Qatar. For example, Chiliz (CHZ) has significantly increased trading volume since the start of the 2022 World Cup. Trading in digital assets – especially stablecoins – indicates the increased demand for cryptocurrency in the global market. Adoption continues to increase as inflation increases significantly on a worldwide scale.
According to data compiled by Binance-backed Coinmarketcap, the total crypto market cap is around $840.22 billion on Wednesday. Of these, Bitcoin controls 38.5 percent, while Ethereum has a share of around 17.9 percent.