Cointree Crypto Market Update - December 13th 2023
Market report for traders
🔮 BTC and altcoins
Over the last 7 days, Bitcoin ends at $63,361, dropping by -3.62% at the time of writing. Similarly, Ethereum ends at AU$3,391, moving -3.49% week-on-week. And in other altcoin movements, Avalanche rises +70.52%, Cardano +31.26%, and Solana +12.90%.
🗞 What’s happening in the news?
This is our final market update for 2023, and what a year it has been!
As the holiday season nears and 2023 winds down, the market is buzzing with activity and anticipation. This week's update takes a closer look at the recent fluctuations in Bitcoin's price, a notable movement of early-mined bitcoins, and the upcoming halving event that's set to reshape the mining landscape.
The volatile nature of Bitcoin was on full display this past week as its price took a sudden dive, dropping 6.5% to fall below $62,000, erasing nearly a week of gains in just 20 minutes. While Bitcoin recovered slightly, this abrupt decline was not isolated to Bitcoin alone; Ethereum also experienced a sharp decrease. The ripple effect of this plunge led to over $410 million in long position liquidations, reflecting the largest single-day decline for Bitcoin in over a month. Despite this, Bitcoin has seen a remarkable increase of over 150% since January, driven by expectations of U.S. spot Bitcoin ETF approvals and a possible mid-2024 interest rate cut by the U.S. Federal Reserve.
In another intriguing development, over 1,000 bitcoins from the "Satoshi era" were recently moved to trading desks and custodian services. These bitcoins, mined between August and November 2010, are part of the early batch of tokens from when Bitcoin's pseudonymous creator, Satoshi Nakamoto, was active. Valued at around $60 million at current prices, their movement adds to the narrative of Bitcoin's growing adoption and the increasing activity of long-dormant bitcoins.
Looking ahead, the Bitcoin mining industry is poised for a significant shake-up with the upcoming halving in April. This event, which halves the reward for mining new bitcoins, is set to intensify competition among miners. Larger mining companies are already gearing up by acquiring newer and more efficient mining equipment, and some are considering acquisitions of smaller players.
As we wrap up this final market update of 2023, we can't help but feel excited about what the new year holds for the world of cryptocurrency. Thank you for being a part of this journey, and we look forward to exploring the dynamic world of cryptocurrency together in 2024. Happy holidays, and see you next year!
📖 What we’ve been reading
This Bitcoin Rally Feels Different. FOMO and YOLO Seem to Be Back “BTC just touched USD$45,000 days after topping USD$40,000 for the first time since early last year – and crypto-skeptics are taking another look.” Read more
Explaining Bitcoin’s ‘Flash Crash’ “The cryptocurrency's volatility cuts both ways.” Read more
$300M crypto long liquidations — 5 things to know in Bitcoin this week “BTC price action obliterates latecomers betting on continued upside as Bitcoin analysts and miners breathe a sigh of relief.” Read more
Disclaimer: The information provided is for educational purposes and does not constitute financial product advice. You should obtain independent advice from an Australian financial services licensee before making any financial decisions.