The crypto market fluctuates but does not move

By Alex Kuptsikevich

Market picture

Cryptocurrency market capitalisation is at the same level as the previous day at $1.76 trillion, with the market showing impressive intraday amplitude on Thursday, gaining and then losing around 7% across the major instruments.

At the start of spot ETP trading, the price of bitcoin was close to $49K but was pushed back to $46K, where it is now. It seems that some investors have moved from crypto exchanges to owning the first cryptocurrency through an exchange-traded product.

The launch of spot ETPs is a positive long-term move that supports the reputation and liquidity of the cryptocurrency market, but it by no means avoids a bumpy start to the journey - just like the launch of bitcoin futures on the Chicago exchange.

The first cryptocurrency's volatility has increased significantly over the past three days, but the price has repeatedly been brought back to the $46K area. On the other hand, we haven't seen the much-anticipated 'sell on the facts' reaction yet.

Technically, such a correction could drag the price below $40K, but the markets need an accompaniment from the deteriorating macroeconomic outlook. Without it, the first cryptocurrency may well drift towards $50K or see another long sideways consolidation, as it did in November.

News background

The influx of institutional investment will increase trading volumes and crypto market liquidity and may even reduce bitcoin volatility in the long run, DRC believes.

It is not worth expecting funds to buy Bitcoin for tens of billions of dollars in the following weeks. But in the long run, there will be demand for cryptocurrencies.

Justin Sun, founder of Tron Blockchain, was optimistic about the approval of spot bitcoin ETFs in the US and said Asian markets would follow.

South Korean authorities have announced a ban on cryptocurrency ETFs. According to the Financial Services Commission of South Korea (FSC), the regulator considers financial stability and investor protection to be orders of magnitude higher than populist decisions.

Jamie Dimon, CEO of JP Morgan, once again spoke out against cryptocurrencies. According to him, "BTC is being used for human and drug trafficking, tax evasion and terrorist financing.” At the same time, the bank itself is one of the participants in BlackRock's Spot Bitcoin ETF.

About the author

Alex Kuptsikevich is a financial market professional with 16-years’ experience and a senior financial analyst at FxPro. He is the author of daily reviews on the impact of economic events with comments featured in top international and Russian media. Alex covers fundamental analysis, global markets, the foreign exchange market, gold, oil, and cryptocurrencies in his analytical pieces. As the senior financial analyst at FxPro, Alex is a guest expert in 1-tier global media such as Forbes, Coindesk, Euromoney and Morning Star.