Dollar Hungover, Bitcoin & Ethereum Give BTD Opportunity; Total Crypto Market Cap Poised to Hit $1 Trillion
While dollar is expected to see more weakness, after the retail buying over the holidays, institutional investors returning to their desks this week are expected to boost BTC prices further.
Over the weekend, Bitcoin hit a new all-time high at $34,865.
The breath BTC BTC 1.09% Bitcoin / USD BTCUSD $ 29,621.25
$322.871.09% Volume 27.82 b Change $322.87 Open $29,621.25 Circulating 19.05 m Market Cap 564.26 b 4 mon SEC Commissioner says NFTs Might Fall Within Their Jurisdiction, Gensler Hires Senate Aid for Crypto Policy 4 mon A Possible Crypto Recovery Moving Into New Year, Risk-on Sentiments Send The Stock Market to Another Record High 4 mon Bitcoin and Ether Dump More Going Into Year-End, ETH Killers Showing Great Momentum took here after hitting a new record had ETH flying, as well as major altcoins that have been waiting for their turn.
Bitcoin is now consolidating, going just under $28,000 today, as traders and investors take off profits here and rotate them into ETH ETH -0.10% Ethereum / USD ETHUSD $ 1,954.47
-$1.95-0.10% Volume 13.39 b Change -$1.95 Open $1,954.47 Circulating 120.92 m Market Cap 236.34 b 4 mon Coinbase Predicts Substantial Growth of Newer L1 Chains & Institutionalization of Regulated DeFi 4 mon A Possible Crypto Recovery Moving Into New Year, Risk-on Sentiments Send The Stock Market to Another Record High 4 mon The Sandbox Game Is Migrating to Ethereum Sidechain Polygon and Launching A DAO in 2022 and altcoins.
The momentum over the weekend pushed the market cap of the entire cryptocurrency to over $900 billion. Another small push to the upside and we will hit the $1 trillion mark. Today’s correction meanwhile has it at around $840 billion.
After hitting these highs, the market saw red today, providing the ‘buy the dip' opportunity the market has been looking for after such highs.
This resulted in $1 billion liquidated in just an hour with $190,000,000 in long positions on Binance within 10 minutes.
Not to mention, the funding has been going berserk, as per Viewbase.
As the digital asset expands beyond speculators and makes its way into investment portfolios, crypto enthusiasts are looking for the next round number.
According to Antoni Trenchev, managing partner and co-founder of Nexo in London, BTC “will be on the road to $50,000 probably in the first quarter of 2021.”
After the retail buying over the holidays, Trenchev sees institutional investors returning to their desks this week and boost prices further.
The world's largest cryptocurrency rallied strongly in December, eclipsing the 2017 high of $20k as people especially institutions continue to see BTC as a hedge against US dollar weakness and inflation risk.
“The drivers of the crypto rally, if anything, are strengthening amid still low interest rates, political uncertainty” and the prospect of more government stimulus, Julian Emanuel, chief equity and derivatives strategist at BTIG LLC told Bloomberg. But volatility can work both to the upside “as well as to the downside,” he added.
The expiry of $36k Bitcoin call options in over 2 weeks could bring some volatility as well.
— skew (@skewdotcom) January 3, 2021
After the 870% uptrend since March low, Bitcoin can take some rest. It is anyone’s guess if the Monday correction, which was about 18%, is all we will get or something more.
Unlike the crypto market’s strong 2021 opening, the dollar started the new year by slipping further broadly.
The greenback fell to another low of 89.4, a low not seen since April 2018 — a few inches more and the USD index will go to Dec. 2014 levels.
“The global economy is closer to a more sustainable growth recovery amid unprecedented fiscal and monetary support,” Maybank currency analysts said in a note adding, “On net…the dollar can see its weakness stay further entrenched.”