The total cryptocurrency market capitalization decreased by 5% between November 14 and November 21, to $795 billion. However, overall sentiment is much worse, considering this rating is the lowest since December 2020.
bitcoin price (BTC) is only down 2.8% for the week, but investors don’t have much to celebrate because the current level of $16,100 represents a 66% year-to-date decline. even if A breakdown of FTX and Alameda Research Pricing in, investor uncertainty is now focused on Grayscale funds, including the $10.5 billion Grayscale Bitcoin Trust.
Genesis Trading, part of the Digital Currency Group (DCG) conglomerate, Stop withdrawals on November 16th. In its latest quarterly report, the crypto derivatives trading and lending company said it had $2.8 billion worth of active loans. The fund manager, Grayscale, is a subsidiary of DCG, and Genesis acted as the liquidity provider.
The weekly decline of 5% in the total market cap was mostly influenced by Ether (ETH) negative price movement 8.5%. However, bearish sentiment had a bigger impact on altcoins, with nine of the top 80 altcoins losing 12% or more in the period.
litecoin (LTC) increased by 5.6% after the addresses idle in the network for one year exceeded 60 million coins.
near NEAR protocol (near) fell by 23% due to concerns about the 17 million tokens held by FTX and Alameda, which backed the Near Foundation in March 2022.
MANA in Decentraland (mana(lost 15% and Ethereum Classic)etc.) another 13.5% as both projects had significant investment from Digital Currency Group, the controller of troubled Genesis Trading.
Leverage demand balanced between bulls and bears
Perpetual contracts, also known as reverse swaps, have a built-in rate that is usually charged every eight hours. Exchanges use these fees to avoid imbalances in exchange risk.
A positive funding ratio indicates that long contracts (buyers) require more leverage. However, the opposite situation occurs when short positions (sellers) require additional leverage, causing the financing rate to turn negative.
The seven-day funding rate has been slightly negative for Bitcoin, so the data indicates increased demand for short positions (sellers). However, the 0.20% weekly cost of maintaining a bearish position is nothing to worry about. Furthermore, the remaining altcoins – apart from Solana’s SOL (sol) – provided mixed numbers indicating that there is a balanced demand between buy (buyers) and sell positions.
Traders should also analyze the options markets to understand whether whale and arbitrage desks are placing higher bets on bullish or bearish strategies.
The put/call options ratio is showing a moderate upward trend
Traders can gauge overall market sentiment by gauging whether more activity is going through with buying (going long) or selling (selling) options. In general, call options are used for bullish strategies, while call options are used for bearish strategies.
A ratio of 0.70 to long indicates that the open interest of put options lags bullish calls by 30% and is therefore bullish. In contrast, the 1.20 index favors put options by 20%, which can be seen as bearish.
Despite the bitcoin price breaking below $16,000 on November 20, investors did not rush to protect against the downside with options. As a result, the buy-to-buy ratio has held steady near 0.54. Moreover, the Bitcoin options market is still aggressively filled with neutral to bearish strategies, as indicated by the current level favoring long options (calls).
Derivatives data shows the resilience of investors given the absence of excessive demand for bearish bets according to the funding ratio of futures contracts and the open interest of neutral to bullish options. Thus, the odds are favorable for those betting that the $800 billion market capitalization support will show strength.
The views, ideas and opinions expressed herein are those of the authors alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
This is an op-ed by Alex, a bitcoin miner with KapoMax.
It is important for individuals looking into bitcoin mining for the first time to understand the importance of adjusting the bitcoin difficulty as well as the impact this has on mining profitability. Many newcomers to bitcoin mining will consult an ASIC profitability on a mining calculator, and expect this profitability to remain relatively the same in the future. This is a misunderstanding as the profitability of any given machine tends to be downward over time. Difficulty increases must be understood before purchasing an ASIC.
“Maybe another push to 16.4-16.5k, then expect a back-up reversal and continuation of the 18-19k targets.”
Meanwhile, fellow merchant Shades, eye Potential volatility continues, with BTC/USD marking the upper Bollinger band on the 4-hour timeframe.
At the time of writing, the four hour candles remain near the upper band, with both candles continuing to stretch in a classic lead to increase volatility.
“Expect bitcoin to continue as long as we stay above $17,000,” Michael Van de Poppe, founder and CEO of trading firm Eight, said. addedlikening the nocturnal movement to the breakout from the end of November.
Liquidations are fueling Bitcoin’s price hike
Further analysis of BTC’s price movements overnight highlighted increased liquidation of short positions.
In a sign of how far market participants assumed further declines would enter, shorts on BTC totaled $7 million in one hour on Dec. 8, according to data from Coinglass. Altcoin short liquidations added another $11 million to the tally.
“Liquidations have been relatively small since the crash in early November, but short liquidations have helped support that latest move,” Analytics Source On-Chain College has been confirmed.
On December 8, 2022, three Democratic politicians from Massachusetts, Oregon, and California unveiled legislation aimed at combating “energy-intensive” cryptocurrency mining operations. The bill, introduced by Sen. Ed Markey (D-MA), claims that cryptocurrency mining “strains the network” and that the industry “undermines US climate goals.”
3 US bureaucrats believe cryptocurrency miners need to report carbon emissions and environmental assessments
Senators Ed Markey (D-Massachusetts), Jeff Merkley (D-Oklahoma), Jared Hoffman (D-Calif.) I entered A bill requiring an “interagency study on the environmental and energy impacts of mining crypto assets.” Markey’s press release on the “Crypto Assets Environmental Transparency Act” states that the US Environmental Protection Agency (EPA) will lead the study.
Furthermore, the EPA will evaluate crypto mining activity in the United States and operations will be required to report greenhouse gas (GHG) emissions. The press release details that crypto miners required to report greenhouse gas emissions will be “operations that consume more than 5 megawatts of energy.”
“Big money [crypto mining] Companies are undermining decades of progress in our fight against climate change by putting profits on the promise of a clean energy future — jeopardizing the reliability and integrity of our grid in the process and making it more likely that utilities will raise energy prices when they work, Senator Markey said Thursday.
Rep. Jared Hoffman said the bill would finally pull back the curtain on the industry. Hoffman added:
It is time for transparency, oversight and accountability.
The Bureaucrats’ bill aims to combat so-called climate change, a narrative that American politicians and leaders have been pushing for years. Markey’s opinions follow a number of studies and research reports that point to processes such as Bitcoin (BTC) Mining is actually beneficial, not only to reduce the burden on networks but also to remove carbon emissions.
For example, environmental, social, and governance (ESG) analyst Daniel Patten, A Report which claims that bitcoin mining can remove the world’s carbon emissions by 5.32%. On November 29, 2022, the Electrical Reliability Board of Texas (ERCOT) published a dossier Report It shows that bitcoin mining is beneficial to the Texas network. An ERCOT study indicates that bitcoin mining operations in Texas could shrink 1.7 gigawatts of power during the Texas winter.
Bitcoin mining is also known Flame gas dilution (release of raw gas into the atmosphere) f Landfill gas. In the press release published Thursday, US Senator Merkley argued that “mining crypto assets consumes massive amounts of electricity” and stressed that “most of it is generated by burning fossil fuels.” but, Various studies over the years indicate The majority of bitcoin mining is paid renewable energy Sources.
The Bureaucrats Act has been endorsed by the Sierra Club, Earthjustice, the Environmental Working Group, and Seneca Lake Guardian. “Digital assets that rely on proof-of-work are wasteful by design,” Scott Faber, senior vice president of government affairs at the Environmental Working Group, said in a statement. “Strong federal regulations must remedy the situation,” added Mandy DeRoche, a clean energy attorney with Earth Justice.
What do you think of US bureaucrats’ bill aimed at regulating crypto mining and forcing operations to report greenhouse gas emissions? Tell us what you think about it in the comments section below.
Jamie Redman is the Chief News Officer at Bitcoin.com News and a financial and technology journalist based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about disruptive protocols emerging today.
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