The growing conflict between regulators and digital currencies does not seem to be holding back BTC price action.
In a period full of festivities, the crypto coin industry refused to take a day off. The good market performance of Bitcoin (BTC) and some other high profile altcoins such as Ether (ETH), was offset by the legal action against Ripple by the US Securities and Exchange Commission. In response, several well-known exchanges, including Coinbase, Crypto.com and FalconX responded by stopping trading or deposits of the XRP token.
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Santiment’s latest findings, published in the biweekly newsletter Cointelegraph Consulting, indicate that the balance of wallets that have not moved BTC for a period of 365 days has become more active. Between 13 and 20 December, more than 146,620 BTCs (approximately USD 3.9 billion at the time of writing) that fit this description moved in the block chain, marking their highest weekly volume since July 2019.
These long term investors tend to trade based on extensive analysis or intimate knowledge of the market, so the intense spikes in Bitcoin’s dormant holdings tend to be more indicative of large changes in market conditions and temporary price volatility.
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Still, with Coinbase’s IPO just around the corner, and the large number of purchases by institutional investors, it does not seem unreasonable to expect conditions to remain positive in 2021. Many investors were considering a „Christmas dump“ as USD 2.3 billion in Bitcoin option contracts expired on Christmas Day, the largest amount in a single day. With this event now in the past, many investors are now optimistic that the 2020 momentum will continue next year.
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Cointelegraph’s Market Insights newsletter shares our knowledge about the fundamentals that drive the digital asset market. With the market intelligence of one of the industry’s leading analysis providers, Santiment, the newsletter is immersed in the latest data on social media sentiment, on-chain metrics and derivatives.