From cryptocurrency market starts the new year in a better mood – Bitcoin defended the $16,500 mark. Since the US indices and the British scholarship are closed today, however, the rebound may prove short-lived and much will depend on Wall Street sentiment over the next few days. The volatility of Bitcoin and other major cryptocurrencies fell sharply in the last two weeks of December. From “king of cryptocurrenciesis back at $16,750 today, Solana gains nearly 11% and trades at $11 – Vitalik Buterin’s comment halted the downtrend.
Australia has overtaken El Salvador in terms of installed ATMs, the current figure is 219 compared to El Salvador’s 212. The country ranks 4th in the world in this regard. The podium spot just ahead of Australia is taken by Spain with 225 crypto machines, although more are not being installed there as quickly as in Australia. The total number of machines installed worldwide, cited by some as one of the signals of growing adoption, is 36,602, of which 6,071 were installed in 2022.
In Nigeria, due to the growing interest in cryptocurrencies and CBC e-Naira, the government’s experimental digital currency, the central bank has imposed a cap of $225 per week on ATM withdrawals.
Brazilian cryptocurrency market regulatory framework in 2022: A record number of companies, over 12,000, reported cryptocurrencies on their balance sheets to tax authorities.
According to data from CertiK, cryptocurrency hacking activity fell to an annual low in December 2022, stealing nearly $62 million worth of BTC in total.
Former CEO of PayPal (PYPL.US), later hired as a cryptocurrency specialist at Meta Platforms (META.US), David Marcus now runs a startup that processes BTC payments. However, he estimates that the cryptocurrency boom will continue until 2023, or even 2024, with no end in sight.
Concerns about the next cycle were also raised by Coinbase CEO Brian Armstrong, who stressed that it will take longer to improve sentiment in the market, which has drawn record attention from scammers and traders. fraudulent companies in the last bull run.
Given Bitcoin’s record correlation with the S&P 500 in 2022, some analysts expect institutions that are risk averse to possible steeper declines in the index will be forced to exit the index altogether. exposure to the cryptocurrency market, which could trigger another cascading selloff. , even if the domino effect of Luna and FTX ends. The vast majority of funds investing in the cryptocurrency market come from the United States.
Map of cryptocurrency market highlights in 2022, showing how market capitalization has fallen from $2.5 trillion in fall 2021 to just $800 billion today. Source: CoinGecko
Looking at the relationship between losses and gains in the last bull market and the previous one, a similarity between the two cycles can be seen. As in 2018, investors have so far realized losses amounting to almost 50% of the gains made in the bull market. Over the period 2020-2022, we see that losses and gains have roughly quadrupled compared to the period 2017-2019. In 2021-22, losses realized by investors totaled more than $213 billion, compared to $56 billion in 2018-2019, indirectly due to a higher market capitalization and the record amount of capital invested in the market cryptocurrency in 2020. Source: Glassnode
Bitcoin volatility is falling back to record lows that historically herald a sharp rise in volatility. This could be helped by the mood in the markets at the start of the new year as investors and institutions take new positions. The 7-day moving average approached levels between 22 and 28%. Looking at its relationship to the prices shown above, lows in this area have resulted in a major move – either a trend reversal or a trend continuation. Source: Glassnode
Futures volumes for the two biggest cryptocurrencies, namely Bitcoin and Ethereum, hit new lows, underscoring deteriorating market sentiment and diminishing interest in digital asset speculation. Source: Glassnode
The amount of BTC held by statistically cautious long-term investors hit all-time highs again, confirming growing interest from investors with longer investment horizons and potentially hinting at a possible supply shock as Bitcoin is heading towards $20,000 in the first quarter of 2023. Source: Glassnode
Chart of Solana and Bitcoin (in yellow) on the M30 chart. Information provided by Vitalik Buterin on Twitter helped Solana recoup some of the losses. The cryptocurrency is up nearly 12% today, with investors also encouraged by Bitcoin’s positive comeback towards $17,000. Source: xStation5 by XTB
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