Bitcoin starts the working week at around $48K, maintaining a positive attitude after a sharp increase over the weekend. The price impulse pushed the first cryptocurrency over the weekend to $49K, followed by Bitcoin and other coins went up. After reaching local highs, a cautious sell-off began. However, judging by the current fairly high prices for coins, optimism in the market still significantly prevails over pessimism.
Bitcoin has maintained a positive attitude at the beginning of the week, Bitcoin has maintained a positive attitude at the beginning of the week
The total capitalization of cryptocurrencies has again exceeded the threshold of $2 trillion, amounting to $2.1 trillion. at the time of writing. The capitalization of the first cryptocurrency is approaching $900 billion. The greed and fear index for Bitcoin and the largest cryptocurrencies jumped from last week to 54, which corresponds to the “neutral” mode, fully reflecting what is happening in the crypto market. As recently as last week, the sector was in the “fear” mode.
Bitcoin remains the locomotive of the crypto market, and now all participants of the crypto market will closely monitor the prospects of overcoming the round level of $ 50K. Even an unsuccessful attempt to overcome it will be very positively perceived by all market participants.
The capitalization of the crypto market exceeded 2.1 trillion.The capitalization of the crypto market exceeded 2.1 trillion.
If the coin manages to gain a foothold higher, we can count on the emergence of a new demand impulse. In this situation, even a sideways price trend can bring a positive, as investors increasingly see that the absence of price fluctuations does not always mean a sell-off is approaching.
The neutral position of American regulators can make a big contribution to the growth of cryptocurrencies. Fed Chairman Jerome Powell noted that there are no plans to ban cryptocurrencies, but some representatives need regulation. It is likely that in this case we are talking about stable cryptocurrencies that “parasitize” the US dollar. Apparently, the volatility of Bitcoin and the relatively small size of its capitalization (compared to the traditional market) so far give it protection from regulatory pressure.
The cryptocurrency fear and greed index jumped sharply from the area of extreme fear The cryptocurrency fear and greed index jumped sharply from the area of extreme fear
China, meanwhile, prohibits access to crypto information resources, including CoinMarketCap and CoinGecko. Beijing consistently restricts its citizens’ access to cryptocurrencies. Although in this case it is worth noting that the Chinese firewall will protect only the laziest from this information, and VPN in the digital age is becoming one of the primary applications on any device.
In addition, not all crypto exchanges and other resources work on the KYC principle, so the Chinese will be able to continue using cryptocurrencies. In fact, the actions of the Chinese government could only complicate and make it more expensive for its citizens to use cryptocurrencies.
Probably, the authorities of Western countries understand the real state of things, so we will not see such bans from the US and the EU. However, there is no doubt that the authorities of developed economies face several main tasks in the context of the crypto sector: maximum tax collection and prevention of competition to the dollar or euro.
Now the crypto market is entering its most active phase until the Christmas holidays and New Year, and if digital currencies continue to grow, we will be able to see how much patience regulators have. It is obvious that cryptocurrencies are not a priority for regulators right now, so it is likely that investors still have time to extract maximum benefits from the sector.