Bitcoin Roller Coaster Continues its Wild Journey

December 13, 2023December 13, 2023BITCOIN, Bitcoin rollercoaster, canada, Crypto, crypto currency, Crypto trading, investment, risky investment, Trading, US, volatile market

Prior to the final U.S. interest rate decision of the year, which is scheduled for today, the price of Bitcoin (BTC) steadied around $41,000 on Tuesday as cryptocurrency traders processed yesterday’s significant leverage flush and the worst daily loss since mid-August. The largest cryptocurrency asset began the day at $40,200, but it quickly rebounded to $42,000 before falling to $40,600 in the afternoon in the United States. BTC was trading at $41,300 after trimming some losses, indicating a 0.3% increase in the last day. What we see today in crypto world is another sabre tooth, this time it looks promising.

During last few days the second-largest cryptocurrency, Ether (ETH), fell 1% to $2,200. Numerous altcoins surged over the day, but the two top cryptocurrencies saw a slowdown in their progress.
Among the top-performing cryptocurrency majors, Polkadot (DOT), Cosmos (ATOM), and Injective (INJ) native tokens had gains of 10%–20% in the last day.
With an almost 5% daily growth and more than a doubling of its price in a month, Avalanche (AVAX) surpassed the market capitalization of the well-known dog-themed meme token dogecoin (DOGE).

Bitcoin trading fun or trading nightmare?

On Sunday night in New York, Bitcoin saw over a week’s worth of gains erased in about 20 minutes. According to TradingView statistics, the price of the cryptocurrency dropped sharply about 9:00 p.m. ET, falling from above $43,300 to as low as $40,659 in only six short hours. At 11:30 a.m. ET on Monday, the price of bitcoin was roughly $41,711, down roughly 4.8% over the previous 24 hours.

The reason for the abrupt decline was not immediately apparent, but Coinglass data, which Coindesk cited, indicates that a large number of positions were liquidated in the 12-hour period starting on Sunday night, with a total of $335 million in liquidations across all cryptocurrencies, including roughly $300 million in long positions. In just Bitcoin alone, liquidations totaled over $89 million.

Cryptocurrencies had an early Santa Claus surge last week, with bitcoin reaching over $44,000 on December 6. Bullish traders jumped on to the rising confidence surrounding developments such as the US approval of a spot bitcoin ETF and the impending halving of bitcoin in mid-2024, causing several other tokens to see high increases as well.

Today, Bitcoin is again showing its strength to wake up from the deep fall. Traders are confident again and it shows! The trading value of Bitcoin jumped today by $582 USD just before noon which is equivalent of 1.4%. A solid encouragement for crypto traders.

BlackRock involvement

The SEC has long cited BlackRock’s new ETF model’s “better resistance to market manipulation” as justification for rejecting spot Bitcoin ETFs.

In order to facilitate Wall Street banks’ participation, BlackRock has updated its spot Bitcoin BTC tickers down $41,886 exchange-traded fund (ETF) program. This is so that Wall Street banks may now create new shares in the fund using cash instead of simply cryptocurrency. Banking behemoths like JPMorgan and Goldman Sachs will be able to function as authorized participants for the fund under the new in-kind redemption “prepay” mechanism, allowing them to get around limitations that prohibit them from storing Bitcoin or other cryptocurrencies directly on their balance sheets.

Six BlackRock and three Nasdaq representatives presented the new concept to the US Securities and Exchange Commission (SEC) on November 28. Since many highly regulated institutions are unable to handle Bitcoin themselves, if allowed, the move might be a game-changer for Wall Street banks with trillion-dollar balance sheets eager to get involved.

Authorized participants (APs) would send funds to a broker-dealer under the updated model, and the broker-dealer would then convert the funds into Bitcoin. The funds would then be stored with the ETF’s custody provider, Coinbase Custody in BlackRock’s instance.

Following last month’s attack, which saw more than $200 million taken out of the exchanges, cryptocurrency tycoon Justin Sun declared that funds kept on HTX and Poloniex are “100% safe.”
While withdrawals for some assets are now possible on both exchanges, numerous cryptocurrencies are still restricted. The two digital assets that are withdrawable are Tron (TRX) and Bitcoin (BTC). Due to this, for the past several weeks, both tokens have been trading at a premium on Poloniex, requiring users to accept a 10% haircut in order to liquidate one asset and withdraw another. The freeze was prompted by the theft of $114 million from Poloniex’s hot wallets by hackers on November 10. Subsequently, HTX and blockchain technology Heco Chain were targeted for theft of $97 million.

Bitcoin is on the move an it is a good thing to see. After years of stagnation, the crypto Vulcan is brewing again, waiting to erupt.