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TA Highlight: Cryptocurrency markets have stabilized
The price of bitcoin entered a sideways adjustment phase with the bottom support line stabilizing at the $55,000 mark and the resistance at around $58,200. Bitcoin prices held steady within the 20-day Bollinger bands again this week and gradually converged towards the midline after November 22nd.
The market is currently showing significant volatility restraint, with the maximum spread reaching $3,000. The optimal option for investors making short-term investments may be to continue shorting volatility.
In terms of other technical indicators, although the MACD indicator had yet to form an obvious buy signal, the closing distance between the two lines is an indication of reversal reversal. Users trading with the restricted grid may continue to benefit from the oscillating market this week as the price is fluctuating in a small range.
As BTC smoothed out, the price of ETH also stopped falling and entered a retracement phase. This week, ETH has retraced above the 20-day SMA and the MACD indicator is about to form a golden cross, so investors should keep in mind the right time to buy ETH.
As for other cryptos, the Metaverse and CEX Native Tokens Dollar performed quite well, with overall gains above the market average.
In the near future, the market may still be dominated by repeated oscillations. So momentum strategies traders should be advised, and grid trading may be a better alternative for this kind of market.
Michael Saylor: bitcoin is "Digital Property"
Michael Saylor authored the 2012 book The Mobile Wave: How Mobile Intelligence Will Change Everything where he predicted some of the effects of smartphone technologies.
Now he's calling bitcoin “Digital Property” and he's emphasizing its benefits to the global financial system. Taken from the original quote:
"bitcoin is digital property and will be adopted as a way to store valuable assets by every country that allows its citizens to own private property."
Whale Buys $375 Million Worth of BTC in 14 days
Starting from November 12th, the world's third largest whale confirmed by the blocks has made eight consecutive purchases as bitcoin’s price declined by more than 10% during the same timeframe.
In total, the whale has accumulated 6,665 bitcoins in less than two weeks. In USD terms, this is roughly 375 million US Dollar.
Metaverse: To the Moon ($1T Market Cap)
Grayscale is a digital currency investment fund with over $44B under the team's management. They recently published a report titled "Metaverse, the Web 3.0 Virtual Cloud Economy".
The report looks into the development of the Metaverse and the opportunities that may emerge from future gaming and lifestyle.
It is estimated that revenue from virtual gaming worlds could grow to $400 billion in 2025, from $180 billion in 2020, and at this rate, the metaverse may represent over $1 trillion annual revenue in opportunities by the end of the decade.
News in the Financial Market
NFT is Voted Word of the Year in a Dictionary
The Collins Dictionary has officially announced their ten-word
annual shortlist, as well as declaring that NFT (or Non-fungible token) — is their word of the year, surpassing the likes of crypto, and metaverse.
Under Collins Dictionary, NFT is defined as a unique digital certificate, registered in a blockchain, that is used to record ownership of an asset such as an artwork or a collectible.
More Big Banks are Planning to Launch Crypto-backed Products
Assets in European exchange traded products and mutual funds with cryptocurrency exposure have topped €10.5bn, showing the potential appeal of these products for asset managers.
Joining BlackRock and Invesco, Fidelity (Fidelity), UBS (UBS) and State Street Global Advisors are also considering launching products that offer cryptocurrency exposure such as bitcoin.
JP Morgan CEO is a bitcoin Skeptic and warns against Investment
Jamie Dimon, CEO of JP Morgan, cautioned people to be careful when investing in cryptocurrencies.
In October, he said that bitcoin is “worthless,” questioning the cryptocurrency’s limited supply. He also said regulators should push for more policies regulating the cryptocurrency market.
However, the CEO of JPMorgan acknowledged that his clients are interested in this asset class and the bank is now offering some crypto investments to clients.
IMF to El Salvador: bitcoin should not be used as a legal tender
The IMF regularly undertakes Article IV missions to member countries to consult with government officials before they request to use IMF resources.
In the latest IMF statement, they have advised that bitcoin should not be used as a legal tender. They recommend narrowing the scope of application of bitcoin laws and urges stronger regulation of the new payments ecosystem."
Interestingly, The IMF statement came only two days after President Nayib Bukele announced El Salvador was planning to build the world's first "bitcoin city", which will be funded initially by bitcoin bonds.
The Bank of England also Expressed Concerns for El Salvador's adoption of bitcoin
Bank of England Governor Andrew Bailey on November 25 called El Salvador’s decision to adopt bitcoin as its currency “concerning”, adding that consumers “will probably be caught out by its volatility.”
Bailey added BOE was also studying central bank digital currency to facilitate smooth online payments.
Finnish Regulators are adding Tight Restrictions to Cryptocurrency Promotions
The Finnish Financial Supervisory Authority (FIN-FSA) issued a statement saying that "only entities registered as virtual currency providers in Finland are allowed to market virtual currencies in Finland".
It's been reported that there are currently less than 10 supervised entities operating within the Finnish Cryptocurrency and Virtual Currency sector.
However, the FSA does not restrict access to foreign websites for Finnish users, and Finnish blockchain advocates may continue to access international cryptocurrency websites.
Gate.io Weekly Blogs:
GameFi, defining the future of the gaming industry
What’s The Driver Behind The Lastest BTC Sharp Pullback?
Far from the usual hype, what is the "Metaverse" and will it be happening?
What is Cryptocurrency-Mining?
Author: Peter.L & Byron.B & Charles. F (Gate.io Researchers)
* The article only represents the researcher’s views and does not constitute any investment advice.
* Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all other cases, legal action will be taken due to copyright infringement.