After falling the previous day, BTC has returned to around $ 59,000 to $ 60,000. Many altcoins have also increased slightly. Although the price has fallen in the past 3 days, the market does not panic or fear. This can be seen in the on-chain data.
Over the past two days, the amount of BTC withdrawn from the exchanges has been much greater than the amount deposited. BTC is bought and removed from the exchange when the price corrects.
ETH declined, the amount of ETH purchased was stronger than BTC. The ETH amount withdrawn from the exchange yesterday was greater than the amount paid out.
The trend to withdraw from the ETH stock exchange is also clearer than that of BTC. The price suddenly fell and ETH suddenly also faked on the floor, which is known as the supply shock phenomenon.
The percentage of profitable BTC dropped to 88% and left the red ring. The BTC correction also helps to correct this index.
Last week, Coinshare stats showed that institutional investors continue to pour into crypto.
Crypto investment products saw total inflows totaling $ 151 million last week. This is the 13th straight week that investors have flocked to the market. Since the beginning of the year, crypto investment inflows through these institutions have reached a record $ 9 billion.
Most of the money went into BTC, with stronger gains going into altcoins like Cardano, Solana, Polkadot, and XRP. It can be seen, but institutional investors continue to capitalize on crypto.
At the height of 2017, the confidence and excitement in the market continued to rise much faster than it is now. At the time, very few investors thought the market was going to fall. The market fell until mid-2018, before many really believed the market had turned into winter.
The current market, although BTC has hit a new high at $ 69,000, the number of new entries into the market is not as high as it was in 2017 as well as earlier this year. Most short-term investors have also had at least 6 months in the market and BTC’s sharp correction into the $ 30,000 region in May, so maybe this is why these investors’ confidence is solid because of this. BTC is not correcting as deep as it was before.
This BTC price correction is mainly a result of the long squeeze phenomenon and there are too many profitable BTC that lead to a certain number of profit taking. This correction is necessary and also an opportunity for BTC to amass for future growth.
Fed Governor Waller says the Fed doesn’t have to issue CBDCs
When the USD, as well as other fiat currencies, continue to lose value due to monetary policy, money printing is pushing the market. Especially during the epidemic, most governments were printing money and putting it in the market to save the economy. At this time, BTC is becoming more and more trusted as a store of value.
In a speech released Wednesday lunchtime, Federal Reserve Governor Christopher J. Waller reiterated his skepticism about the implementation of central bank digital money (aka central bank) in the United States. He said that there are already stablecoins based on the USD in the market, so there is no need to issue CBDCs.
Despite the positive outlook, Mr. Waller highlighted three risks related to stablecoins. First, the risks associated with scams running away with large sums of money. He also said that this risk can be resolved with clear and binding regulation for crypto and stablecoin issuers.
The second risk mentioned is that many issuers lead to asynchronous payment systems. This could lead to large discrepancies in the relevant clearing and settlement standards, he said.
Third, Waller said that the introduction of stablecoins comes with a risk of scale as the market grows. At this point there may be an association of stablecoin issuers leading to monopoly. This will damage competition and reduce the utility of the network for consumers. The risks he mentioned can all be resolved if there are clear legal regulations.
In addition to the risks, he also showed the advantages of private companies issuing stablecoins. First, stablecoins are based on and denominated in USD. And private issuers will drive the market to do better. It also increases competition between issuers and benefits consumers.
Some other information:
President Biden has signed a $ 1.2 trillion infrastructure package that will take effect in January 2024. Senator Ted Cruz and Cynthia Lummis also spoke about the need to change this rule.
Fidelity was approved by Canadian regulators as the first institution to provide Bitcoin trading and custody platform services to institutional investors in the country. The move paves the way for many Canadian institutions to invest in Bitcoin, including pension funds, portfolio managers, mutual funds, and ETFs.
Crypto.com is paying $ 700 million to rename the famous Staples Center stadium into the new Crypto.com arena for more than 20 years. Crypto companies are increasingly willing to pay marketing costs for stadiums, soccer teams etc. in order to reach more young users.
Bitstamp, the world’s oldest cryptocurrency exchange, has partnered with Copper.co to bring Cardano (ADA) to the exchange.
On November 17th, the Binance Smart Chain Network hit a record high of 14.7 million transactions. This number is higher than any current network and shows the strong growth of BSC.