- In the last two weeks, Bitcoin has seen some explosive price gains.
- Institutional adoption and market sentiments have hinted at a positive outlook for Bitcoin’s growth.
- An imminent decision on a spot Bitcoin ETF has added to the cryptocurrency’s momentum.
As we reach the midpoint of December, it’s time for another installment of our regular Bitcoin update. The past two weeks have been quite eventful for the cryptocurrency, with significant price movements and notable developments in the industry. Let’s delve into the key events that have shaped the Bitcoin landscape and explore what lies ahead in the coming weeks.
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Here at DailyCoin, we take pride in keeping our audience well-informed. Thus, to satiate your curiosity, let’s delve into some noteworthy events from the past week. To do this, we offer you the Bi-Weekly DailyCoin Bitcoin Regular, assembled by our expert, Kyle Calvert.
News and Events: Understanding Impacts
VanEck Embraces Crypto Culture with ‘HODL’ Ticker
VanEck, an asset management firm, has rebranded its spot Bitcoin ETF, renaming it VanEck Bitcoin Trust with the ticker symbol HODL. This catchy name, a popular slang term in the crypto community representing holding onto cryptocurrencies, reflects VanEck’s understanding of its target audience.
Cryptocurrencies Surge as Fed Holds Interest Rates Steady
The Federal Open Market Committee (FOMC), the central bank’s policy-setting body, decided to maintain the target range for the federal funds rate at 5.25% to 5.5%. FOMC Chairman Jerome Powell said the U.S. economic recovery has progressed more quickly than expected but cautioned that overall economic activity remains below its pre-pandemic level.
El Salvador Clears Path for “Volcano Bond” Issuance
El Salvador’s ambitious Bitcoin-backed bonds, colloquially known as “Volcano Bonds,” have secured regulatory approval for issuance in early 2024. This marks a significant step forward for the country’s pioneering foray into the crypto world.
Community Sentiment
According to analysts, Bitcoin’s recent price correction to near $40,000 was a healthy sign, as it allowed the cryptocurrency to cool off after a rapid ascent to $44,000 earlier this month. The correction was driven by profit-taking, which saw the value days destroyed (VDD) metric hit its highest since May 2021.
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VDD measures the value of Bitcoin that has been dormant for a certain period of time and then sold. The higher the VDD, the more selling activity there has been.
Philip Swift, creator of the statistics resource Look Into Bitcoin, pointed to the VDD metric as evidence that some HODLers, or long-term Bitcoin holders, are taking profits.
A growing chorus of analysts and commentators is pointing to bullish signs for Bitcoin, with some predicting a significant price rebound shortly.
Matthew Hyland, a technical analyst and co-founder of MacroPulse, highlights the relative strength index (RSI) as a key indicator supporting the bullish outlook. On daily timeframes, the RSI has printed a bullish divergence with price, indicating that the trend will likely reverse.
“BTC close confirmed it,” Hyland stated to his X subscribers on Dec. 14, further strengthening the bullish sentiment.
Ali, a popular social media commentator and analyst, echoes Hyland’s optimism, citing a return of significant inflows into both Bitcoin and the largest altcoin, Ether. These inflows, he notes, mirror conditions from late 2020, when BTC/USD first broke beyond $20,000, entering a period of significant price discovery.
Fellow commentator BitQuant adds to the bullish chorus, stating, “We have a plan. We know where we’re going, why we’re going, and when we’re going. The rest is just noise.” This confidence reflects the growing belief among many analysts that Bitcoin is poised for a major price surge.
Current Outlook
The price of Bitcoin (BTC) has witnessed a remarkable surge over the past two weeks, surpassing the $35,000 mark and reaching a high of $44,705 last week Friday. However, the cryptocurrency experienced a significant correction on Monday, plummeting by 5.82% before rebounding slightly to its current price of $42,000.
Despite the recent pullback, the overall outlook for Bitcoin remains positive. The cryptocurrency’s fundamental strength and growing adoption among institutional investors suggests it is well-positioned for continued growth in the coming months. Additionally, market participants are eagerly awaiting the imminent decision regarding the launch of a spot Bitcoin ETF, which could further bolster the cryptocurrency’s momentum.
Fear and Greed
The way people feel significantly impacts the cryptocurrency market. The Fear and Greed Index plays a crucial role in navigating these emotions. This index is built upon two fundamental concepts:
- Extreme fear suggests a potential buying opportunity.
- Excessive greed signals an overheated market.
The index ranges from zero to 100, with zero representing extreme fear and 100 indicating extreme greed.
Today’s Fear and Greed Index stands at 70, indicating an increase of seven points compared to the reading from two weeks ago. It is crucial to note that the Fear and Greed chart undergoes daily fluctuations; therefore, it is essential to stay updated by regularly monitoring it.
On the Flipside
- There is no guarantee that the spot Bitcoin ETF decision will be good.
- Bitcoin price trends demonstrate that repetitive patterns don’t guarantee future outcomes, indicating the need for cautious optimism amidst market speculation.
Why This Matters
Bitcoin, the world’s most prominent cryptocurrency, is a barometer for the entire digital asset ecosystem. Its movements and trends hold profound implications for the broader market, influencing investor sentiment, regulatory decisions, and, ultimately, the overall trajectory of cryptocurrencies.
To learn more about altcoins ready to surge as Bitcoin dominance decreases, read here:
Altcoins Poised to Explode as Bitcoin Dominance Wanes?
To explore the status of inactive Bitcoin, firmly holding 70% of the supply, read here:
Inactive Bitcoin Stays Firmly Planted at 70% of Supply
