What is Happening in the Cryptocurrency World?

What is happening in the cryptocurrency world? Should cryptocurrencies, which have been on the decline in recent days, be alarming the investors? Helin Çelik from Investing.com wrote the following.

In the cryptocurrency market, which has spent the past two days on a sell trend, the reaction of the wave initiated by Janet Yellen, who is expected to become the Treasury Minister in the US, is not over yet. In recent days, cryptocurrency units have returned to support zones that needs to be carefully monitored. Looking at the CoinShares data, it was observed that the volume of short positions increased, while a portion of the institutional investors made a profit of $ 85 million. In this period, when institutional investors started the profit realization, a vertical movement was observed on the ounce of gold. In this situation, which is in reverse correlation and it is observed that the gold investor has turned to the cryptocurrency market for a while, the recovery of gold supports the data. On the other hand, considering the strong corporate purchases at the level of 30,000, it is observed that the preference of the institutional investor tends to maintain long positions. In fact, as proof of this, the leading cryptocurrency Bitcoin seems to have experienced the biggest liquidity outflow. Looking at Glassnode data, we see that 270,000 Bitcoins have been moved to hodlers wallets in the past 30 days. In addition, we observe that the number of addresses with 1000 or more BTC has reached a new record with the level of 2.445. However, at this point, Çelik states that BTC's movement with 30,000 support should be followed carefully. [caption id="" align="alignnone" width="1573"] Source: glassnode[/caption] In addition, Çelik points out that the developments that are still in their infancy but developments that can have a positive effect in the process may come from BlackRock, which has a fund of 8 trillion dollars under the US, Latin American people and its administration. However, Çelik states that these data can only be meaningful if they find a response in the market. When looking at the market in general, it is observed that the total volume again fell below 1 trillion dollars. The dominance rate of Bitcoin, the leader of the cryptocurrency market, has also dropped to 65 percent. The total value of the market sizes of altcoins is around $ 324 billion. [caption id="" align="alignnone" width="1486"] Source: Investing.com[/caption] Çelik states that there are signals that positive perception may continue in general. According to Glassnode data, about 80 percent of the 18.6 million Bitcoins in circulation are currently stored in illiquid wallets. Judging by the data, only a third of Bitcoins mined since July 2020 goes to the cryptocurrency trading platforms. This means that most of the Bitcoins mined since summer are stored. BlackRock, with $ 8 trillion under its management, announced that it is preparing to launch a Bitcoin-based futures contract, with no deterioration in the trend outlook. In the situation where cash settlement is required, CME stands as an option. This attempt of BlackRock signals that there will be new purchases.

Biden's Attitude Is Positive For The Cryptocurrency Market

Joe Biden, who took an oath as the President of the United States, took 17 steps to cancel Donald Trump's policies from the first moment he took office. One of these steps was a bill involving FinCen's regulation of cryptocurrency wallets. As of yesterday, Joe Biden has decided to stop this bill. If this regulation had been accepted, investors would have to verify their identity and cryptocurrency service providers would have to report. As such, the regulation gathered the great reaction from the cryptocurrency market. However, this step of Biden was well received in the cryptocurrency market. Considering that more than 30 percent of the people of Latin America intend to buy Bitcoin, the comforting steps countries will take could allow more new actors to enter the market. If this happens, it can be expected that the market volume will deepen, the number of active wallets and the number of newly opened wallets will increase. As the demand will increase at the same rate, we can perceive steps like these as steps to support the cryptocurrency market.       Source: Investing.com