Bitcoin’s global market cap drops 0.75%
On Monday night, the global market cap decreased by 0.75% to $853 billion at 7: 17 p.m. EST.
Why It Matters: Cryptocurrencies were downbeat while stock futures were up a bit at the time of writing because fear of rate hikes gripped investors.
The services sector grew for the 30th month in a row in November, according to the ISM services report on business on Monday. In November, the Services PMI climbed to 56.5 from the previous reading of 54.4.
The service part of the economy won't weaken and inflation will likely prove to be a sticky part of the economy. The risks that the Fed may need to do more are elevated and that is why the economy needs to go to a recession, said Edward Moya, senior market analyst at OANDA. After a hot ISM services report prompted bets that the Fed could tighten much more than markets are currently pricing, the earlier gains of digital currency evaporated. The headlines on criptocurrencies haven't been too surprising as they focus on how much money was loaned out and will likely be lost. It is fascinating to see how resilient Bitcoins have performed over the last few days, but a sustained move higher seems unlikely. Standard Chartered s Global Head of Research Eric Robertsen said that the apex coin could fall as low as $5,000 in 2023.
According to Glassnode, the price of digital currency is undergoing a capital reset. In the wake of one of the biggest deleveraging events in the history of the digital asset, theBitcoin Realized Cap has declined, so all capital inflows have been flushed out since May 2021, according to the on-chain analysis firm.
The deleveraging event referenced by the firm was the deplosion of FTX, the formerly owned criptocurrency exchange that was previously headed by Sam Bankman- Fried.
The severity of losses seems to be diminishing over recent weeks, according to Glassnode. There has been a positive shift in network activity and demand for block space.
The shift in structure is not supported by rising transfer volumes, which continue to languish at cycle lows, and suggests an elevated level of retail-sized participation, said Glassnode.
Justin Bennett said that despite the pullbacks seen on Monday,Bitcoin is holding up well. This relief rally isn't over, the trader said on Twitter. Micha l van de Poppe said in the coming days that he d be looking out for Bitcoins testing the $16,500 level for longs. He is watching out for a possible sweep of the lows and the apex coin reclaiming the $16,900 mark.
The trader said that for now I'm calm and probably waiting for that higher low to happen before triggering positions.
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