Crypto Week Ahead: Bitcoin Loses Steam, Sideways Trading Expected To Continue

Over the past seven days, Bitcoin (BTC) price achieved a high of $43,286.28.

BTC dominance, at the time of writing, stood at 51.87 percent.

Source : Mohamed Hassan/Pixabay

Bitcoin (BTC), the most popular cryptocurrency in the world, appears to be losing the rare steam which saw its price rise to $43,000 and the global market cap rocket to over $1.61 trillion last week. However, BTC hasn’t yet reached its ~$20k lows and is managing to remain stable above the $41,000 mark at the time of writing. However, as investors’ greed and spending appear to be waning, BTC is expected to trade sideways over the coming few days.

Before we proceed further, readers should note that the overall crypto market and coin prices are extremely volatile in nature. There are no foolproof methods to ascertain how cryptocurrencies are expected to behave in the future. This article is aimed at helping investors stay on top of the current market scenarios and the biggest events that have already taken place as well as some upcoming occurrences that are worth noting. Investors are advised to do their own research before taking any call. 

Crypto Prices Over The Past Week

Last Monday (December 11), the overall crypto market cap stood at $1.58 trillion. BTC price stood at around $42,500, ETH price stood at around $2,250.

A week later, the overall market cap dipped to $1.46 trillion.

DeFi's total volume stands at $6.98 billion, at 13.30 percent of the total market 24-hour volume. In the case of stablecoins, the overall volume stands at $47.06 billion, at 89.65 percent of the total 24-hour market volume. As per CoinMarketCap, the overall market fear and greed index stood at ‘Greed’ with 70 points (out of 100) — seeing a dip from around 80 (Extreme Greed) only last week.

BTC dominance, at the time of writing, stood at 51.87 percent.

Over the past seven days, Bitcoin achieved a high of $43,286.28 (on December 14) and a low of $40,556.38 (December 12).

Ethereum, on the other hand, saw a high of $2,329.59 (December 15) and a low of $2,154.87 (December 13).

Crypto Events To Note

Last week, International Monetary Fund (IMF) Managing Director Kristalina Georgieva, emphasised the necessity of regulating cryptocurrencies as they present potential risks to financial stability. Addressing a conference in Seoul focused on digital currencies, Georgieva underscored the challenges associated with the widespread adoption of crypto assets. 

She expressed concerns that a surge in crypto asset adoption could jeopardise macro-financial stability, impacting the efficacy of monetary policy transmission, measures for managing capital flows, and the sustainability of fiscal policies due to the inherent volatility affecting tax collection.

The IMF head highlighted the importance of regulatory measures to address these potential risks and maintain a stable financial environment in the face of the growing influence of cryptocurrencies.

Additionally, In a recent development, the US Securities and Exchange Commission (SEC) has rejected a request from Coinbase Global for the implementation of new regulations in the digital asset sector. The denial, which occurred on Friday, prompted the country's largest cryptocurrency exchange to initiate legal proceedings challenging the decision.

The SEC, comprised of a five-member commission, voted 3-2 against proposing new regulations. The majority argued that they do not consider the existing regulatory framework for the crypto sphere as "unworkable," contrary to Coinbase's assertion. Following the decision, Coinbase announced the submission of a petition to review the SEC's ruling in a court of law.

This development marks the latest episode in an ongoing struggle between the cryptocurrency industry and the top U.S. financial regulatory authority. The SEC has consistently maintained the position that a significant portion of crypto tokens qualify as securities, falling under its jurisdiction. This stance has led to legal actions against multiple crypto firms, Coinbase included, for allegedly listing and trading tokens that should be registered as securities according to the SEC.

Lastly, on a positive note, OpenAI CEO Sam Altman reiterated his commitment to the cryptocurrency initiative Worldcoin, responding to speculations surrounding the company's quest for a $50 million funding injection.

Worldcoin's primary objective is to establish a global identity and financial network. The initiative has garnered significant interest, with over 2.6 million individuals expressing interest in undergoing iris scans through Worldcoin's "orb" devices. In return, participants receive a digital identity and complimentary cryptocurrency.

Altman addressed these matters during a virtual question-and-answer session organized by FT Partners, a fintech-focused investment bank. This session took place a week subsequent to a report by crypto news outlet The Block, which outlined Tools For Humanity's efforts, the entity behind Worldcoin, to secure a $50 million investment from potential backers.

What Crypto Traders Are Saying About Current Market Scenario

Mudrex co-founder and CEO Edul Patel told ABP Live, “In the coming week, the expectation for Bitcoin revolves around its current consolidation at the $40,000 level following weekend profit-taking. The potential for an upward move towards $42,700 remains if buyers can maintain control above the present level. Given the absence of clear dominance by either buyers or sellers and the rate positioned away from significant support and resistance levels, it is likely that BTC will continue trading within the range of $41,000 to $43,000 in the next few days or might test the support $39,000 level.”

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Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Cryptocurrency is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Cryptocurrency market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.