Dec 09, 2020
Bitcoin is having a second dip in December. It recovered from the first one and also hit an all-time high (ATH). Investors are curious about what will happen now.
The leading cryptocurrency in the market, Bitcoin, is living one of the best periods in history recently. Bitcoin is the main topic of talks, even for those who are not a part of the community. The market opened the day with a dip in the prices. The price decrease in Bitcoin began yesterday. The price went down from 19k to $17839. According to Ki-Young Ju, CEO of CryptoQuant, the reason for the drop is the whales (individuals with large bitcoin holding). He said that whales at Bitcoin kept their coins at the exchanges be ready to sell orders.
At the time of writing, Bitcoin had the daily lowest price of $17640, and it was bouncing back to $17900. According to Ki-Young Ju, the main reason for daily ups and downs are supply and demand. We can guess that what will happen next is highly dependent on the holders and sellers of Bitcoin and the decisions of the companies.
The attention of the companies and the market is significant in that period. The companies such as MicroStrategy and Grayscale Trust was adding cryptocurrencies to their treasury. MicroStrategy is buying more of Bitcoin. They converted their significant amount of reserves to Bitcoin. Now they own 40,824 BTC, which worth more than $700 million, and they plan to add more. On 8 December, the stock prices went down from $319 to $289, and it seems that decision to buy additional bitcoin with raising money affected the stock prices.
If we look at the overall market condition, we can see that Bitcoin is not the only cryptocurrency that drops. Ethereum, XRP, Litecoin, and other main digital currencies display price decrease of up to 7%. During this period, individuals prone to buy stablecoin, which ped their values to other currencies and assets. The market capitalization of stablecoins such as USDT, USDC increases with interest to them. If we look at the economic indexes, they display upward movement. S&P index hit its all-time high price of $3708. The price increase can be the result of moving from crypto to the financial sector. But it is not significant to conclude crypto boom is ended.
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