Cryptocurrency

This article was originally published on U.Today More

The analyst notes that Bitcoin has now stabilized in a value region, suggesting that attention may be directed toward the Point of Control (PoC) and support levels close to $98,000. Although slipping below could result in another test of lower support zones, regaining this zone and holding above it would provide a basis for recovery.Lower time frames show that external factors, especially its relationship to conventional financial markets, have limited the price of Bitcoin. Sell flows on the Bitcoin market seem to be a direct result of weakness in the equity markets, particularly in the S&P 500 (ES). This interaction shows how macroeconomic variables continue to have an impact on the dynamics of the Bitcoin market.The significance of the New York session’s low is one important finding. If Bitcoin is able to stay above this level, it may be a sign that passive bids are increasing, which could support a future upward move. On the other hand, falling below this low and running into pressure from passive sellers would indicate that the lower value is accepted, which could lead to a more significant correction.Traders are encouraged to keep an eye on whether Bitcoin can maintain its position within the value area, even though the $98,000 level appears to be a crucial zone. Given that both liquidity extremes have already been swept, the next move will probably depend on whether Bitcoin can find and hold support or run the risk of entering a more significant pain mode with more declines. For a clearer direction during this volatile phase, Bitcoin traders should closely monitor key levels and pay attention to broader market cues.This article was originally published on U.Today More

Ethereum, the second-largest cryptocurrency by market capitalization, finds itself at the center of a value debate despite achieving significant milestones over the past year, according to a Binance analysis report released on Thursday.The Dencun upgrade, a crucial advancement in Ethereum’s development, aimed to reduce fees for Layer 2 (L2) users by implementing ‘blobs’, but it also altered the fee dynamics for Layer 1 (L1).This shift towards L2s has increased Ethereum’s dependence on smaller data availability fees, affecting its fee collections, burn rates, and the narrative surrounding its ‘ultrasound money’ proposition.The competition Ethereum faces is multi-faceted. Not only does it contend with alternative data availability layers, but it also grapples with alternative Layer 1s (alt-L1s) that have shown superior growth metrics year-to-date.Additionally, the potential migration of Uniswap to its own Unichain could redistribute value within the ecosystem, posing additional challenges to Ethereum’s position.”This collection of market dynamics has placed Ethereum in multiple competitive arenas – from L2s and alt-DAs to L1s and alt-L1s – all while still requiring a focus on ETH’s value accrual. As a result, Ethereum faces a prioritization dilemma that directly affects value,” the report added.This article was generated with the support of AI and reviewed by an editor. For more information see our T&C. More

Bybit, the world’s second-largest cryptocurrency exchange by trading volume, continues to reinforce its commitment to transparency and regulatory compliance. In response to evolving regulations, Bybit has made the difficult but necessary decision to temporarily adjust the availability of its products and services within the European Economic Area (EEA).Paving the Way with MiCAR ComplianceBybit is actively pursuing a Markets in Crypto-Assets Regulation (MiCAR) license in Austria, a cornerstone of its compliance-first approach. This effort underscores Bybit’s dedication to aligning with stringent European regulatory standards, enhancing user protection, and delivering a secure trading environment.To ensure ongoing compliance with applicable regulatory laws, particularly regarding reverse solicitation, Bybit has made the difficult decision to generally cease all communication with the EEA region. This measure is intended to avoid any potential breach of the strict reverse solicitation principle. Existing customers’ access to their crypto assets remains uninterrupted. Although this was a challenging decision, it was necessary for Bybit to maintain its compliance-first approach. Bybit is actively working towards obtaining a MiCAR license in Austria to become one of the first players in the EEA. Once the appropriate licensing is secured, Bybit will start engagement with its EEA clients in accordance with applicable laws.Balancing Innovation with ComplianceBybit will be deeply committed to serving its EEA clients once it receives a MiCAR license. The company is actively engaging with regulatory authorities to expedite the licensing process and start full operations in the region.Bybit appreciates the support of its users as it navigates this pivotal regulatory journey. For questions or assistance, users are encouraged to contact Bybit’s Customer Support team via Live Chat.#Bybit / #TheCryptoArkAbout BybitBybit is the world’s second-largest cryptocurrency exchange by trading volume, serving over 50 million users. Established in 2018, Bybit provides a professional platform where crypto investors and traders can find an ultra-fast matching engine, 24/7 customer service, and multilingual community support. Bybit is a proud partner of Formula One’s reigning Constructors’ and Drivers’ champions: the Oracle (NYSE:ORCL) Red Bull Racing team.For media inquiries, please contact: media@bybit.comContactHead of PRTony AuBybittony.au@bybit.comThis article was originally published on Chainwire More

Prosper, a decentralized protocol democratizing access to Bitcoin mining by tokenizing institutional-grade Bitcoin hashrate as omnichain real-world assets (RWA), today announced the acquisition of over 7,000 ASIC miners from BITMAIN along with the successful closing of its strategic funding round.In addition to its BITMAIN partnership, Prosper announced the closure of its strategic funding round, which saw participation from prominent industry players and financial investors, including Metalpha, Waterdrip Capital, BIT Mining, and Satoshi Protocol. Earlier in October, Animoca Brands also disclosed its intention to purchase $PROS tokens from the open market.These investments demonstrate the strong confidence in Prosper’s vision of bridging institutional-grade Bitcoin mining power on-chain and its innovative approach to Bitcoin liquidity farming. The involvement of these strategic partners brings crucial industry expertise and networks to support Prosper’s operations as it scales.Positioning Prosper for GrowthAbout ProsperProsper is a decentralized protocol for a community that truly believes in Bitcoin, providing full exposure across Bitcoin hashrate and Bitcoin through tokenizing institutional-grade Bitcoin hashrate as omnichain RWA, and aims to fully unlock the potential of Bitcoin. For more information, users can visit prosper-fi.com or follow on X (formerly Twitter).ContactProspercontact@prosper-fi.comThis article was originally published on Chainwire More

This surge in value has prompted discussions among investors and analysts about the possibility of a Bitcoin bubble. Brett Friedman, Winhall Risk Analytics/OptionMetrics contributor, examines 5 factors to consider.The characteristics of a financial bubble are often only clear in hindsight, but certain indicators can suggest an overheated market, Friedman suggests.For instance, a growing spread between implied volatility and out-of-the-money to at-the-money volatility skew in options trading may signal an overbought market. While this spread in Bitcoin has been increasing, it has not reached “abnormal levels.”Futures curves can also provide insights into market dynamics. A backwardated curve, where near-term contracts are priced higher than longer-term ones, or a flattened contango curve, can indicate bubble-like behavior.However, Bitcoin, which has been in contango since the introduction of futures in late 2017, has seen its deferred months outperforming nearby contracts recently. This trend suggests trader confidence in the sustainability of the rally well into 2025, which would not align with typical short-lived bubble patterns.Another sign of market frothiness in the cryptocurrency market is a surge in volume and open interest, according to Friedman.Since the election, Bitcoin futures have seen increased activity, particularly in the Micro BTC contract favored by retail investors. The Micro BTC contract’s open interest has jumped by almost 2.5 times since before the election, while the full-sized contract’s interest has remained stable. “This could indicate that traders are comfortable with the risk of the deferred contracts and believe that the current rally will be sustained and last into 2025,” he said.”This would not be the case if BTC were forming a bubble, since they are usually short-lived and confined to the front end of the curve.”Another factor that prompted Friedman to examine if Bitcoin is really in a bubble is the emergence of related financial products with high leverage and promises of rapid returns. Products like the MicroStrategy stock, leveraged Bitcoin-related ETFs, and the proliferation of crypto evangelists on social media could be indicative of speculative behavior.So, what’s his conclusion? While there are signs of an enthusiastic market for Bitcoin futures, it is not yet clear if this constitutes a bubble. “There is evidence that the market may indeed be frothy, but not necessarily on the way to a full-fledged bubble yet.”In the short run, it appears that BTC will need some new bullish fundamentals or will have to get back over $100K to reignite speculation that a bubble might be forming,” he concluded. More

At $98,000, option holders experienced the maximum pain point, or the price at which they suffered the greatest losses. This is quite consistent with the recent price consolidation of Bitcoin around the psychological level of $100,000. The price chart indicates that bullish momentum is still present because Bitcoin is still trading above important support levels, such as the 50 EMA. But the trading volume seems to have tapered off a little, probably because the holidays traditionally bring lower market activity in the U.S. and Europe. Although there may be another test of support around $95,000, a breakout above $102,000 might rekindle optimism. A total of 164,000 options contracts for Ethereum with a Put/Call Ratio of 0.68 and a maximum pain point of $3,700 expired.The price chart for Ethereum shows a consistent recovery from the 26 EMA, indicating that buyers are entering at pivotal points. The fact that ETH has recovered from recent declines despite the expiration indicates rising demand. The holiday season’s reduced trading activity, however, may limit price movements to the $3,500-$3,900 range for the time being. Markets have historically seen brief volatility following options expirations, as traders liquidate or modify their positions.A combination of consolidation and irregular price movements may result from this dynamic and lower trading volumes over the holiday season. Although the expired maximum pain points — $98,000 for Bitcoin and $3,700 for Ethereum — serve as important reference levels, the decreased trading activity may postpone any significant trend changes. Traders should keep an eye out for any departure from these levels since it may reveal information about the direction of the market in 2025.This article was originally published on U.Today More

The world’s biggest cryptocurrency rose sharply on Thursday after President-elect Donald Trump reiterated his pledge to make the U.S. a global crypto leader. But this bounce was short-lived, given that he did not provide any major cues on policy.Bitcoin fell 0.7% to $99,961.4 by 00:30 ET (05:30 GMT). Focus was now squarely on the Fed’s rate decision next week, where the central bank is widely expected to cut interest rates by 25 basis points.But markets turned uncertain over the Fed’s long-term outlook on rates, especially as producer inflation data for November read higher than expected, while consumer inflation remained sticky. The dollar firmed on this notion, pressuring risk-driven assets across the board. Traders were now awaiting the Fed’s outlook on rates, and are bracing for a slower pace of easing in 2025. High rates limit the appeal of speculative assets such as crypto. Recent crypto market data showed spot exchange-traded funds tracking Bitcoin and Ether saw sustained inflows through early December, amid sustained optimism over friendlier regulations under Trump. Bitcoin ETFs saw an eleventh consecutive day of inflows as of December 12, with Blackrock’s iShares Bitcoin Trust (NASDAQ:IBIT) commanding the biggest share of inflows. Spot Ether ETFs marked 14 straight days of inflows, with Blackrock (NYSE:BLK) and Grayscale ETFs seeing the most inflows. ETF inflows signal increased institutional interest in crypto, given that they offer investors a safer way to gain crypto exposure. The launch of spot ETFs in U.S. markets earlier this year was viewed as largely positive for crypto, with inflows picking up rapidly after Trump’s election victory in early-November. Most major altcoins rescinded some of their gains made this week in tandem with Bitcoin. But they had also largely outpaced Bitcoin in recent weeks, as markets bet that friendly U.S. regulations will allow cryptos beyond Bitcoin to flourish. Ether fell 0.3% to $3,916.31, while XRP fell 3.6% to $2.3458.Solana, Cardano and Polygon fell between 2% and 7%, while among meme tokens, Dogecoin fell 2.7%. More