Will calm return to the markets at the end of the year?

Thought of the week

Institutional investors who urgently wanted to invest in digital assets have already done so in recent months. As a result, the market for digital assets could become a little “quieter” over the holidays until the possible approval of Bitcoin Spot ETFs. However, this is precisely where the opportunity for volatile movements lies at a time when many market participants are not paying much attention to the market due to the public holidays. This year, we should therefore keep an eye on the markets throughout, even “between the years”.

Digital Asset News

In the ongoing legal battle between Coinbase Global Inc. and the US Securities and Exchange Commission (SEC), crypto lawyer, John Deaton, has accused the SEC chief, Gary Gensler, of “manipulating” the public and disagrees with his stance on cryptocurrencies.

The developments came after the SEC denied crypto exchange Coinbase’s court request to formulate crypto regulatory rules for three reasons.

These reasons include the application of current securities laws to cryptocurrencies, the SEC’s commitment to the crypto markets through rule enforcement, and the importance of preserving the agency’s discretion in determining its rulemaking priorities. The U.S. Securities and Exchange Commission (SEC) has sent very different signals about its position on the crypto industry in the past, either through the words of the SEC Chairman or through the actions of the regulator in general.

Amid ongoing litigation with Coinbase and Binance over cryptocurrencies as purported securities, the regulator has declined to appeal its defeat against crypto investment fund Grayscale Investments.

The Bitcoin price will reach a new record high of USD 80,000 in 2024 and stablecoins will collectively move more capital than the leading payment service provider Visa, according to a crypto analyst at Bitwise.

Ryan Rasmussen, the relevant senior research analyst at Bitwise, published 10 forecasts for the crypto industry in 2024 on X (formerly Twitter) on 13 December, which predict rapid growth for stablecoins, among other things.

According to these forecasts, stablecoins are expected to create a larger combined payment volume than Visa in the coming year, as (stable-value) cryptocurrencies are one of the “killer apps” in the industry, according to Bitwise.

By the third quarter of 2023, Visa had processed a payment volume of more than USD 9 trillion. US dollars, while stablecoins were worth over 5 trillion US dollars in the same period. US dollars in the same period. This means that it would take almost a doubling in the coming year for the forecast to materialise.

Circle CEO Jeremy Allaire also said in an interview with CNBC on 13 December that the demand for stablecoins will explode in the coming years if investors increasingly need digital dollars on the internet: “There is a huge demand for internet dollars. It’s a big thing and it’s clearly distinct from investors looking for inflation protection or a store of value.”

Although many financial service providers now rely on crypto, institutional players still see major challenges in the introduction of this new technology, as a market research report by the crypto company Paxos shows.

Paxos surveyed 400 executives from US-based financial services companies with at least five million users and assets under management of USD 50 billion or an annual payment volume of USD 50 billion.

The crypto company published the results in its “2023 Enterprise Digital Asset Adoption Report”, which shows that financial services organisations remain highly interested in digital assets and blockchain technology. According to the survey, 99% of respondents stated that their organisation had an equal or greater focus on crypto and blockchain projects in 2023 than in previous years. It states that:

“The resilience of digital assets and blockchain technology in the face of market developments, economic challenges and the need for greater regulatory clarity shows that companies have internalised the value of the technology in the long term.”

Digital Asset Market

In chart terms, Bitcoin now ranks a few percentage points below the high it formed for the year. A consolidation at these “high levels” could lead to a breakout at any time. A loss of the $40,000 mark could lead to continued negativity, while a recapture of the levels above half of ~$42,500 could lead to new highs for the year.

The next price targets in the event of a positive development: ~$42,500, ~$43,350, ~$44,500

The next price targets in the event of a negative trend: ~$40,500, ~$39,500 ~$38,000

The market currently offers short-term opportunities to realise smaller trades, especially in the altcoins, when positivity sets in. Large movements could occur unannounced in the coming days, so a constant watchful eye should be kept on the market in order not to miss possible entries.

Weekly overview

As usual, we are also providing detailed videos for those who want to delve deeper into the subject.


Mit dem Laden des Videos akzeptieren Sie die Datenschutzerklärung von YouTube.
Mehr erfahren

Video laden