The rise in altcoins suggests a greater appetite for risk among traders. After4 percent drop in the previous week, Bitcoin’s price is beginning to stabilize. According to technical indicators, the cryptocurrency was trading around $57,000 at press time and could rise to $60,000-$63,000 in the near future.
Due to the Thanksgiving holiday in the United States on Thursday, analysts expect trading volumes to fall this week. “Over the last three years, we’ve had downward volatility every time around this holiday,” CryptoQuant wrote in a blog post. “This could be due to end of month rotations, options/futures expiries, and rebalancing.”
Bitcoin has increased by about 3% in the last 24 hours, while ether has increased by 8%.
- Bitcoin (BTC): $57,854, +3.83%
- Ether (ETH): $4,382, +8.32%
- S&P 500: $4,690, +0.17%
- Gold: $1,791, -0.99%
- 10-year Treasury yield closed at 1.68%
Fear in the market has increased.
The bitcoin Fear & Greed index is at its lowest point since late September, just before the price of bitcoin began to recover. The index indicates that market participants are in “fear” mode, which some analysts see as a contrarian signal as buyers return to the market.
“In bull markets, the index typically indicates ‘greed’ or ‘extreme greed’ for longer periods of time, with brief periodic visits to the ‘fear’ area, as we saw this spring,” Arcane Research wrote in a Tuesday report.
The dollar vs. bitcoin
A rising US dollar, on the other hand, could be a headwind for bitcoin. The dollar has strengthened in recent weeks as investors expect the Federal Reserve to tighten monetary policy.
“We’ve seen a significant run-up in the dollar alongside Fed funds rate futures, which now imply a 100% chance of two rate hikes by the end of 2022 and a nearly 40% chance of a third rate hike by next December,” Delphi Digital, a crypto research firm, wrote in a report published Tuesday.
The chart below depicts the recent rise in the dollar (inverted scale), which could indicate that bitcoin’s price will continue to fall. Tighter monetary policy is generally negative for risk assets, such as stocks and cryptocurrency.
- Crypto options traders turn to DeFi for altcoin bets: The Singapore-based firm QCP Capital now trades more than $1 billion of crypto options per month using decentralized financial applications, including $1 million worth of AAVE options recently with Ribbon Finance, CoinDesk’s Omkar Godbole reported.
- Binance rebuilding DOGE wallet to deal with user account freeze: Users previously told CoinDesk their accounts were frozen by the exchange until they returned the DOGE, which was incorrectly transferred, back to the exchange. The incident led to Elon Musk starting a Twitter war with the exchange.
- NFT marketplace Rarible launches messaging feature: The non-fungible token (NFT) marketplace Rarible.com has launched a direct messaging function that allows users and creators to communicate using crypto wallet addresses rather than social network usernames, CoinDesk’s Brandy Betz reported.