Mon, April 15, 2024

The ‘Year of the Dragon’ Brings Serenity to Bitcoin

Top Cryptos to Check this week: BTC/USDT ETC, NEAR, XMR, FTT

Key Points:

  1. Bitcoin (BTC) remained stable at around $42,000 despite the upcoming Lunar New Year.
  2. Analysts observed significant gains in Bitcoin (94%) and Ethereum (47%) despite earlier predictions.
  3. Regulatory scrutiny increased in the US, with surveys on crypto miner energy consumption and proposed AML and CFT regulations.
  4. Attention is focused on the BTC-spot ETF market, with Bitcoin ending the week with a 1.33% gain.
  5. Major ETF issuers like Vanguard, State Street, and Charles Schwab chose not to participate in the BTC-spot ETF market.
  6. Bitcoin maintained stability above the 50-day and 200-day EMAs, suggesting prevailing bullish sentiment.

Bitcoin (BTC) experienced a period of stability, hovering around the $42,000 mark on Monday. Simultaneously, traders in East Asia counted down the days until the Lunar New Year. In this lunar cycle, East Asian nations are set to welcome the “Year of the Dragon,” a symbol traditionally associated with good luck and prosperity in the Chinese Zodiac.

Despite Bitcoin’s recent resurgence, seasoned analysts remain cautiously optimistic, echoing predictions made by Hong Kong-based CLSA last year that foresaw a year of market fluctuations in 2023. Nevertheless, the cryptocurrency market defied expectations, with Bitcoin surging by nearly 94%, while Ethereum (ETH) recorded a respectable 47% increase over the same period.

Daniel Wang, CEO of Taiko, a zero-knowledge roll-up platform, envisions a positive trajectory for Ethereum in 2024, fueled in part by the anticipated impact of Exchange-Traded Funds (ETFs) and the long-awaited Dencun upgrade. This upgrade is set to enhance transaction speed and reduce gas fees.

Lucy Hu, a Senior Analyst at Metalpha, remains bullish on Bitcoin, citing factors such as the upcoming halving and controlled inflation, which she believes bode well for the cryptocurrency. She expressed hope that the “Year of the Dragon” would propel the market to unprecedented heights.

Scrutiny and Political Pressures Loom

Recent developments have brought cryptocurrency mining into the spotlight in the United States. The Energy Information Administration (EIA) announced plans to survey identified crypto miners, requiring them to disclose details about their energy consumption. This increased attention from regulators follows Senator Elizabeth Warren’s campaign to introduce banking-style anti-money laundering (AML) and counter-terrorism financing (CFT) frameworks to the digital asset space.

While these regulatory initiatives present challenges for the cryptocurrency market, the focus remains on the BTC-spot Exchange-Traded Fund (ETF) market. Despite recent dips in net inflows, Bitcoin concluded the week with a 1.33% gain.

Of note, three major ETF issuers—Vanguard, State Street, and Charles Schwab—opted to abstain from the BTC-spot ETF race. This decision could potentially reshape market dynamics in the coming months.

Technical Analysis: Bitcoin and Ethereum

Bitcoin has exhibited remarkable stability, maintaining levels above both the 50-day and 200-day Exponential Moving Averages (EMAs). This steady performance underscores a prevailing bullish sentiment within the market. Should Bitcoin manage to break through the $42,968 resistance level, further gains may be on the horizon.

Conversely, Ethereum’s performance presents a more nuanced picture. While the cryptocurrency hovers beneath the 50-day EMA, it remains above the 200-day EMA, signalling a mixed outlook. A breakthrough of the $2,300 resistance level may trigger selling pressure, warranting caution among investors.

Market participants are advised to remain vigilant regarding developments in the ETH-spot ETF market and navigate the potential impact of ongoing political discourse, both of which can significantly influence digital asset prices in the days to come.

YOU MAY ALSO LIKE

Market Trends

Quick Look: Cronos Group stock fell by 2.53%, closing at $3.47. Trading

The Central Bank of Russia and crypto, nickel

Quick Look: Nickel smelting causes local communities severe health problems and environmental

Tractable raises $60M to grow in accident - robot recovery

Quick Look: The Robot Market in China is projected to grow from

COMMENTS

Leave a Comment

Your email address will not be published. Required fields are marked *

User Review
  • Support
    Sending
  • Platform
    Sending
  • Spreads
    Sending
  • Trading Instument
    Sending

BROKER NEWS

Axi Renews CFD Sponsorship Deal with Football

The Australian Federal Court has ordered Prospero Markets, a trading broker for forex and CFDs, to shut down and has appointed a liquidator to refund client money. This move follows a demand from

BROKER NEWS

Broker News

Axi Renews CFD Sponsorship Deal with Football

The Australian Federal Court has ordered Prospero Markets, a trading broker for forex and CFDs, to shut down and has appointed a liquidator to refund client money. This move follows a demand from the