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Bitcoin set to end Nov at $40K – Here’s what to watch out for

TL;DR

  • Bitcoin starts the week at its 18-month high, trading at $36,964.16, with a 49.38% market dominance and a possibility of hitting the $40K mark before November markets close.
  • The crypto market is primed for traditional market impacts with US Fed inflation statistics and top Fed officials’ speeches this week. On December 1, Fed Chair Jerome Powell will speak.
  • Crypto investors continue to bank on the approval of BTC approvals any time soon – Probably the start of 2024. However, the hopes of approval have the market on a positive stance.

Bitcoin begins a new week with its highest level in 18 months, leaving traders wondering what’s next. BTC price action has remained higher after peaking above $38,000 last week, but a challenging “micro-range” has kept bulls and bears at odds.

The crucial short-term question for market participants is whether a deeper correction will occur or whether a trip above $40,000 will leave skeptics behind.

Today’s Bitcoin (BTC) price is $36,964.16, according to CoinGecko, with a 24-hour trading volume of $15,920,551,489.04. This indicates a -1.47% drop in the last 24 hours and a -0.43% drop in the previous 7 days. 

Bitcoin Continues the market bull rally momentum

There are several potential catalysts for trend emergence for Bitcoin over the coming several days, while there are rising signals that the market is poised for a boost. Volatility is projected to hit later in the month, but several macroeconomic issues can potentially cause some unexpected price activity.

The global crypto market cap is now $1.46 trillion, a -1.66% decrease from the previous day and a 66.12% increase from a year ago. Bitcoin (BTC) has a market cap of $723 billion as of today, signifying a 49.38% dominance. Meanwhile, the market cap of stablecoins is $130 billion, accounting for 8.87% of the total crypto market cap.

Neither bulls nor bears have been able to remove BTC/USD from an increasingly narrow corridor, and new higher highs on daily timescales have been few and fleeting.

A timely decline at the latest weekly close saw bids begin to be completed, with Bitcoin falling to lows of $36,700 before recovering.

Market events to pay attention to this week

As November comes to an end, Bitcoin traders should expect a traditional macro week with volatility triggers to match. The Federal Reserve of the United States will get some significant inflation data in the coming days, which will be used to make an interest rate policy decision next month.

Following statements from senior Fed officials throughout the week, Fed Chair Jerome Powell will speak on December 1. The most important data releases for markets will most likely be the Q3 GDP and Personal Consumption Expenditures (PCE) prints for October, which will be released on November 29 and 30, respectively.

Previously, US macro data showed that inflation was slowing faster than markets expected, resulting in favorable reevaluations of risk assets.

According to CME Group’s FedWatch Tool, the probability of the Fed keeping rates at present levels is nearly unanimous at 99.5%.

The decline in Bitcoin exchange balances resumes.

After a month of turmoil caused by withdrawal freezes and legal action against several of the largest cryptocurrency exchanges, BTC holdings are once again going downward.

According to the most recent data from on-chain analytics firm Glassnode, the aggregate holdings of the major exchanges totaled 2.332 million BTC as of Nov. 26.

With the exception of recent lows in October, this is the lowest number of BTC accessible since April 2018. The total reached 3.321 million BTC, which was at its highest in March 2020, soon after the COVID-19 cross-market catastrophe.

Investors look out for Grayscale’s GBTC 

While Bitcoin is still waiting for US regulators to approve the country’s first spot price exchange-traded fund (ETF), markets indicate that sentiment is improving. This is most evident in the Grayscale Bitcoin Trust (GBTC), the largest Bitcoin institutional investment vehicle.

GBTC, which is about to be transformed to a spot ETF, is rapidly approaching equivalency with its underlying asset pair, BTC/USD. According to CoinGlass statistics, the GBTC share price had a paltry 8% discount to net asset value, or NAV, as of Nov. 24.

Bitcoin miners are devoting unprecedented processing capacity to the network ahead of the planned block subsidy halving in April 2024.

The achievement not only signifies a psychological milestone but also demonstrates miners’ confidence in future profitability — even as BTC price performance remains 50% behind its own top.

At the same time, outflows from known miner wallets to exchanges are at their lowest in seven years, according to data from on-chain analytics platform CryptoQuant.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Florence Muchai

Florence is a crypto enthusiast and writer who loves to travel. As a digital nomad, she explores the transformative power of blockchain technology. Her writing reflects the limitless possibilities for humanity to connect and grow.

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