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Market Wrap: Bitcoin Holds Above $60K After Fed Taper Announcement – Coindesk

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Bitcoin price chart (CoinDesk, TradingView)
Bitcoin traded in a choppy price range on Wednesday as traders reacted to the U.S. Federal Reserve’s plans to taper its $120-billion-a-month in bond purchases.
The unprecedented amount of buying by the Fed as part of its monetary stimulus plan known as quantitative easing (QE) provided a tailwind for financial assets, such as cryptocurrencies, deemed by the market to be risky. But lower liquidity as a result of the tapering could encourage investors to reduce their exposure to crypto and other risks.
Bitcoin’s price fell by about 5% during the announcement by the Fed’s policymaking Federal Open Market Committee in its post-meeting statement, but buyers were quick to step in around the $60,000 support level.
Analysts remain bullish on cryptocurrencies, but some have pointed to declining trading volume as a sign of slowing upside momentum in prices.
“We haven’t even seen an episode of FOMO (fear of missing out) yet, so the sharpest bull-run part of the rally is yet to come,” Alex Kuptsikevich, an analyst at FxPro, wrote in an email to CoinDesk. “Despite BTC’s very sluggish performance in recent days, what still draws attention is the apparent support on dips,” Kuptsikevich wrote.
Trading volume in the bitcoin spot market continued to decline despite bitcoin’s price rally over the past month. The chart below shows the seven-day average BTC trading volume, which is down almost $1 billion from the previous week, according to data compiled by Arcane Research.
But some analysts expect higher trading activity if BTC rallies through the end of the year.
“The trading volume has decreased substantially since bitcoin hit an all-time high on October 20, and it should increase considerably if bitcoin is to challenge its all-time high again soon,” Arcane wrote in a Wednesday report.

Trading has also been relatively quiet on the Coinbase crypto exchange over the past week, with BTC accounting for 21% of total volume. However, the company noted that trading activity is starting to increase in alternative cryptocurrencies (altcoins) as bitcoin’s price stalls.
“Ether (ETH) volumes have also seen an increase to 18.51%, relegating SHIB to the third spot,” Coinbase wrote in a newsletter to institutional clients, referring to the shiba inu coin. “It is possible to envisage a scenario where ETH will again overtake BTC in terms of volumes as we head into year-end if this narrative gains steam.”

Most digital assets in the CoinDesk 20 ended the day higher.
Notable winners as of 21:00 UTC (4:00 p.m. ET):
Notable losers:
DISCLOSURE
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
Damanick Dantes
Damanick is a crypto market analyst at CoinDesk where he writes the daily Market Wrap and provides technical analysis. He is a Chartered Market Technician designation holder and member of the CMT Association. Damanick is also a portfolio manager at Cannon Advisors, which does not invest in digital assets. Damanick does not own cryptocurrencies.
Helene Braun
Helene is a breaking news intern covering markets.
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The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
@2021 CoinDesk

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Crypto Payments Service Provider BCB Group Raises $60M Series A – CoinDesk

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BCB Group CEO Oliver von Landsberg-Sadie (BCB Group)
BCB Group, a crypto-dedicated payments services provider, has closed a $60 million Series A funding round.
Read more: BCB Group Expands in Europe With Acquisition of 100-Year-Old German Bank
DISCLOSURE
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Will Canny

By signing up, you will receive emails about CoinDesk product updates, events and marketing and you agree to our terms of services and privacy policy.
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The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
@2021 CoinDesk

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EU should ban energy-intensive mode of crypto mining, regulator says – Financial Times

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Global stocks, crypto rebound ahead of today’s momentous Fed decision – Fortune

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