Bitcoin and other cryptocurrencies settled on Tuesday after one of the worst crypto selloffs this year, though digital assets continue to hold on to gains from a recent rally that has carried prices to their highest levels since April 2022.

The price of Bitcoin was down less than 1% over the past 24 hours to $41,800, having briefly traded below $41,000 on Monday amid the worst selloff for the token on a daily time frame since early March, according to Dow Jones Market Data. Bitcoin has retreated from its recent peak above $44,000the highest point since April 2022but still remains up by more than 50% in two months in the latest stage of a crypto recovery this year that has sparked calls for a new bull market.

Bitcoin [pulled back on Monday], but it has yet to impact our short-term trend following gauges, which point higher, said Katie Stockton, managing partner at technical research firm Fairlead Strategies.

The major narrative driving Bitcoin prices higher in recent months has been optimism that U.S. regulators will soon approve the first spot Bitcoin exchange-traded fund (ETF), which would be expected to usher in a fresh wave of investor interest.

An improving macroeconomic backdrop has also helped, particularly recent signs of waning inflation and slowing growth that have raised expectations that the Federal Reserve will cut interest rates multiple times next year. Higher rates have heaped pressure on tokens and other risk-sensitive bets like stocks since 2022, and hopes that borrowing costs will soon come down represent a key tailwind for both asset classes.

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In focus on Tuesday is inflation data in the form of the U.S. consumer price index (CPI) for November, which could move cryptos just like the Dow Jones Industrial Average and S&P 500 in the stock market. Ahead of the Feds next monetary policy decision, due Wednesday, the inflation reading could shift estimates for the first possible rate cut next year, which is currently being priced-in for March. The CPI print was in line with expectations, with consumer prices rising 3.1% from a year ago. Bitcoin was little moved in the immediate wake of the release.

From a technical market perspective, analysts see the move lower in Bitcoinwhich some blamed on profit-takingas doing little to shake the bullish narrative, with momentum remaining behind crypto prices.

Bitcoin would confirm another breakout if it can finish this Sunday above around $42,200 resistance. If confirmed, a breakout would put next resistance near $48,600, said Stockton. Intermediate-term momentum remains strongly positive suggesting overbought conditions can be sustained without a major pullback in the weeks ahead. Initial support for bitcoin is at the rising 50-day moving average around $37,400.

Beyond Bitcoin, Ether the second-largest cryptolost less than 1% to $2,220. Smaller tokens or altcoins had a more firm rebound, with Cardano climbing 9% and Polygon pushing 6% higher. Memecoins were more muted, with Dogecoin up less than 1% and Shiba Inu

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Write to Jack Denton at jack.denton@barrons.com

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Bitcoin Price Settles After Worst Selloff in 9 Months. Where Crypto Goes Next. - Barron's

Bitcoin and other cryptocurrencies fell on Monday, retreating from 20-month highs but with prices still near the peak of a recent rally. The days ahead see catalysts including the next Federal Reserve decision that could reignite sentiment.

The price of Bitcoin has fallen 5% over the past 24 hours to $41,550, sliding lower from levels near $44,500 on Friday, which marked the highest point for the largest digital asset since early April 2022before tokens plunged into a brutal and prolonged bear market. Bitcoin has surged by some two-thirds in two months, ending a multi-month stretch of subdued trading and spurring calls for a new crypto bull market.

A wave of profit-taking hit the cryptocurrency market on Monday morningwe saw a massive exit from long positions in low liquidity before the regular session in Asia. Strong demand for risk assets in traditional markets suggests that the market will try to get back on its previous growth track, said Alex Kuptsikevich, an analyst at broker FxPro. Thisdid not break the bullish trend. In our view, it will remain in force if Bitcoin manages to hold above $40,000.

Multiple factors have supported gains in crypto prices, including optimism that U.S. regulators will soon approve the first spot Bitcoin exchange-traded fund, which would be expected to usher in a fresh wave of investor interest. The improving macroeconomic backdropwith expectations the Fed will cut interest rates multiple times next yearand historically tight token supply also have helped.

Like the Dow Jones Industrial Average and S&P 500, Bitcoin has benefited from macro tailwinds as waning inflation and slowing growth support the prospect of rates coming down significantly next year from a generational peak.That is why the latest Fed monetary policy meeting this week, on Tuesday and Wednesday, looms large.

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While markets dont expect the central bank to lower borrowing costs this month, the press conference from Fed Chairman Jerome Powell will be scrutinized for signs of rate-cut timing, with traders currently pricing in the first cut as soon as March. Any dovish commentary from Powell, or indications rates could be lowered sooner rather than later, has the potential to restart the crypto rally in the absence of other major catalysts such as spot Bitcoin ETF news.

Overall, the tea leaves in crypto derivatives still point to bullish animal spirits. The most popular strike pricethe value at which the option can be exercised, representing a price targetacross all contracts is for Bitcoin at $50,000. There is a concentration of $50,000 Bitcoin call options for the Jan. 26 expiration.

Beyond Bitcoin, Ether the second-largest cryptofell 7% to below $2,200. Smaller tokens, or altcoins, also were weak, with Cardano down 9% and Polygon off 8%. Memecoins fell, with Dogecoin dropping 7% and Shiba Inu shedding 8%.

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Write to Jack Denton at jack.denton@barrons.com

Excerpt from:
Bitcoin Price Retreats to Start the Week. This Could Restart the Crypto Rally. - Barron's

Alex Dovbnya

Bitcoin's hash price has escalated to $125K per exahash, marking highest earnings for miners since July 2021

The Bitcoin network has hit a significant milestone with its hash price soaring to $125,000 per exahash, a peak not observed since July 2021 and a return to levels seen prior to the 2020 halving.

This metric, indicative of the revenue miners receive per unit of computational power, shows a robust interplay between transaction fees and network activity.

James Check, lead analyst at Glassnode, points to an increase in transaction fees as a counterbalance to the 200% rise in hash-rate.

Hash price, a critical yet often overlooked metric, represents the earnings a miner can expect for each exahash of computing power contributed to the network.

This value is calculated by dividing the daily mining revenue by the total network hash rate. A higher hash price means that miners are generating more revenue for the same amount of computational work, which can be due to increased transaction fees or a higher price of Bitcoin itself.

The recent spike suggests that despite the increased competition among miners, the overall profitability of mining has improved.

Recent data indicates that the Bitcoin network is processing a near-all-time high number of transactions per day.

The distinction between monetary transactions, which are close to reaching a historic peak at 334,000 per day, and inscriptions, which account for 250,000 transactions per day, reveals that the majority of network activity is monetarily focused.

This increase in transaction volume translates into higher fees collected by miners.

With miners able to fit more transactions into each block, the surge in fees has become a vital component of the hash price increase.

About the author

Alex Dovbnya

Alex Dovbnya (aka AlexMorris) is a cryptocurrency expert, trader and journalist with extensive experience of covering everything related to the burgeoning industry from price analysis to Blockchain disruption. Alex authored more than 1,000 stories for U.Today, CryptoComes and other fintech media outlets. Hes particularly interested in regulatory trends around the globe that are shaping the future of digital assets, can be contacted at alex.dovbnya@u.today.

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Bitcoin Hash Price Reaches Highest Level in Years; Here's What It Means - U.Today

Bitcoin and other cryptocurrencies fell Wednesday but were holding somewhat steady after a selloff earlier this week knocked prices down from a 20-month high. Traders were awaiting a policy decision from the Federal Reserve and eying key technical levels.

The price of Bitcoin has fallen 1% over the past 24 hours to $41,200, retreating further from its recent peak above $44,000, which marks the tokens highest level since April 2022before cryptos plunged into a brutal and prolonged bear market. While it has pared gains, the largest digital asset still has surged more than 50% in less than two months, ending a period of subdued trading and sparking calls of a new bull market.

The recent Bitcoin price correction seems more like profit [taking] by short-term investors and traders after an impressive rally, said Ruslan Lienkha, chief of markets at fintech platform YouHodler. We dont see deleveraging in the market; crypto traders are continuing to take an elevated risk. For this reason, we might see even higher volatility in the near future.

Digital assets have benefited from anticipation that U.S. regulators will soon approve the first spot Bitcoin exchange-traded fund (ETF), expected to usher in a fresh wave of investor interest in cryptos. The macroeconomic backdrop also has helped, with signs of waning inflation and slowing growth pushing traders to adjust expectations for interest rates. They now see the Fed cutting borrowing costs multiple times next year, perhaps as soon as March.

Lower rates tend to boost demand for risk-sensitive assetslike tokens and stockswhich primes Bitcoin to react with the Dow Jones Industrial Average and S&P 500 on Wednesday as investors ready for the latest Fed decision. While markets expect the central bank to hold rates steady, the press conference from Fed Chairman Jerome Powell at 2:30 p.m. Eastern time will be scrutinized for signs of when rate cuts could come.

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While the anticipation of the Feds decision might play a role, its likely one of several factors impacting Bitcoin price movement, analysts at crypto exchange Bitfinex wrote in a note.

Indeed, while the Fed decision could be the next catalyst for Bitcoin, analysts are also eying market technical factors, including historically tight token supplywhich has helped supercharge gainsand the prospect of more profit-taking.

$44,000 and above should be pivotal as mid-term holders (those holding Bitcoin for a period of 2-3 years) have their realized price at that level, this is increasingly more significant when you consider that this cohort controls over 16 percent of the active supply, the Bitfinex analysts wrote, with realized price referring to a metric similar to cost basis. In other words, an influential block of holders will be in the green come $44,000, which could prompt further selling.

Beyond Bitcoin, Ether the second-largest cryptofell 2% to $2,180. Smaller tokens or altcoins were also in the red, with Cardano down 4% and Polygon slipping 2%. Memecoins were also in the dumps, with Dogecoin dropping 5% and Shiba Inu

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Write to Jack Denton at jack.denton@barrons.com

Excerpt from:
Bitcoin Prices Have Stalled. The Fed Isnt the Only Thing to Watch Today. - Barron's