Bitcoin (BTC) ended the week at around $41,400, down 5.5% compared to the previous week’s closing price of around $43,800. Prices experienced a notable decline on Monday, reaching weekly lows of around $40,225, before making a strong recovery and crossing the $43,000 threshold on Wednesday and Thursday. Negative price action over the weekend resulted in a closing price of around $41,400, and the downtrend continued into Monday the 18th as BTC fell below the trading level of $41,000.
Last week marked the first instance of weekly price declines after eight consecutive weeks of price increases, indicating an expected market move aimed at reducing market leverage. Approximately $345 million worth of long and short positions were liquidated during the week, with the majority of liquidations affecting long positions, totaling approximately $235 million. However, the strong uptrend price movements seen at various points this week also resulted in the liquidation of approximately $110 million in short positions.
High volatility is a typical outcome following periods of significant uptrends and downtrends, leading to a series of liquidations, reducing market leverage, and contributing to more sustainable price action and market conditions. Traders often take advantage of moments of increased volatility to attract liquidity and rebalance their positions.
Bitcoin’s dominance, which represents market capitalization over the overall digital asset market, decreased to 53.11% from 53.46% in the previous week, demonstrating the altcoin’s solid resilience compared to major digital assets in the recent downtrend. This suggests active engagement by investors, as this pattern typically occurs when investors quickly allocate their funds to various altcoins in search of short-term profitability.
An analysis of the daily trading volume of centralized exchanges measured over a seven-day period from November 11th to 17th revealed that the daily trading volume exceeded $36 billion. This is the highest level since March 2023, confirming strong trading activity contributing to the rise in volatility.
Looking at the topic of ETFs, the discount rates for Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE) maintain stable discount rates at 9.9% and 13.7%, respectively. This confirms that there is continued confidence among investors regarding the ETF Spot Approval and subsequent potential conversion of the Grayscale Trust into an ETF.
The final deadline for the SEC decision on the 21Shares BTC spot submission is scheduled for January 10th, and the comment window will close on January 5th. The SEC is expected to make a final approval or denial decision on 21Shares’ application over a six-day period from January 5th to 10th, which will coincide with a series of approvals or denials on other BTC applications. Analysts continue to predict a 90% chance of a green light from the SEC.
Last week marked the first instance of weekly price declines after eight consecutive weeks of price increases, indicating an expected market move aimed at reducing market leverage. Approximately $345 million worth of long and short positions were liquidated during the week, with the majority of liquidations affecting long positions, totaling approximately $235 million. However, the strong uptrend price movements seen at various points this week also resulted in the liquidation of approximately $110 million in short positions.
High volatility is a typical outcome following periods of significant uptrends and downtrends, leading to a series of liquidations, reducing market leverage, and contributing to more sustainable price action and market conditions. Traders often take advantage of moments of increased volatility to attract liquidity and rebalance their positions.
Bitcoin’s dominance, which represents market capitalization over the overall digital asset market, decreased to 53.11% from 53.46% in the previous week, demonstrating the altcoin’s solid resilience compared to major digital assets in the recent downtrend. This suggests active engagement by investors, as this pattern typically occurs when investors quickly allocate their funds to various altcoins in search of short-term profitability.
An analysis of the daily trading volume of centralized exchanges measured over a seven-day period from November 11th to 17th revealed that the daily trading volume exceeded $36 billion. This is the highest level since March 2023, confirming strong trading activity contributing to the rise in volatility.
Looking at the topic of ETFs, the discount rates for Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE) maintain stable discount rates at 9.9% and 13.7%, respectively. This confirms that there is continued confidence among investors regarding the ETF Spot Approval and subsequent potential conversion of the Grayscale Trust into an ETF.
The final deadline for the SEC decision on the 21Shares BTC spot submission is scheduled for January 10th, and the comment window will close on January 5th. The SEC is expected to make a final approval or denial decision on 21Shares’ application over a six-day period from January 5th to 10th, which will coincide with a series of approvals or denials on other BTC applications. Analysts continue to predict a 90% chance of a green light from the SEC.
Source: the-blockchain.com
