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First Mover Asia: Bitcoin Price Gains Amid Low Trading Activity Over The Weekend

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Where will Bitcoin price move next? Up or down? Analysts who were so sure before, are now left in doubt. Amidst predictions of Bitcoin experiencing a strong bull run, its price took a different turn. The power struggle between the bulls and the bears continues, as we look to the chart to see where its future lies.

The past weekend saw interests in layer-1 altcoins receive most of the attention and the funding, with bitcoin salvaging the remaining fragments of the trading volume. This has in turn reduced the market dominance of the crypto leader and has reduced its prominence on major crypto exchanges like Redot.com, albeit by a temporarily thin margin.

Bitcoin has put up quite the show on the charts since the beginning of this year. Ending the first month of the year at $40,000, it gradually climbed to $64,000 by mid-April. Bitcoin price later declined to $32,000 before building momentum, hitting the $50,000 mark, and later, its $68,000 all-time high by November 5.

Generally, this pattern led a lot of cryptocurrency analysts to predict Bitcoin repeating its 2013 bull run in November – due to chart resemblance. Despite the cryptocurrency’s market dominance and high liquidity, its volatility is still very unpredictable.

Bitcoin experienced a rapid decline after a week or two of consolidating around the $62,000 mark. This decline comes after a much-anticipated rise to the $80,000 mark, leaving a lot of traders stranded in the market.

Market Fear Increases

According to the fear and greed index, market fear has now increased to 43. This fear is responsible for Bitcoin’s low trading volume across different exchanges over the past weekend.

Bitcoin has been losing market share to alternative coins since the beginning of the year when it started with a market dominance of 69.71%. Fast Forward to November, Bitcoin has approximately 42% market dominance – losing 27.71% in market share. Losses like this indicate that the cryptocurrency market is already shifting its focus from the pacesetter to alternative cryptocurrencies.

Ethereum transaction fees are currently on the high but have gained a 5-6% market share since the beginning of the year. Same thing with similar digital currencies in the top 10 by market cap, contending for the spotlight. These cryptocurrencies continue to undermine Bitcoin and its long-standing dominance.

Crypto traders and investors, according to market data, are currently speculating the movement in Bitcoin price. This speculation saw a lot of traders take profit when Bitcoin hit $66,000, and a lot more changed their buy positions to sell positions out of fear.

Chart movement shows the market might have entered another sideways movement, pending which factor dominates the market again; either fear or greed. Some analysts predict Bitcoin’s rise might be short-lived, as pressure continues to mount from the sellers.

Is Asia Still A Major Influence On Bitcoin?

The highlight of Asia news on cryptocurrency for some time now has been China’s crackdown on Bitcoin mining and trading within the country.

China was one of the early countries to embrace cryptocurrencies, as Bitcoin miners in China contributed to two-third of the Bitcoin in supply worldwide. But the government’s fear of innovative and disruptive technology got the best of them.

The government’s anti-cryptocurrencies plot is still not fully grasped by the global audience but conclusions have surfaced as to the government’s stance.

Global observers suggest the government fears the decentralized nature of digital currencies, taking away control from their regulatory bodies and completely undermining the financial system in the country. Crypto proponents also claim the clampdown is in a bid to give room for China’s digital Yuan, already in its advanced stage.

The recent ban issued by China restricted its financial and payment institutions from engaging in any form of cryptocurrency transaction. China had issued such bans on Bitcoin in 2013 and 2017 and has recently intensified its efforts to completely smother the crypto market within its walls.

These efforts by the Chinese government have seen a lot of cryptocurrency exchanges close down, crypto mining reduce, and bitcoin miners relocate or stop completely. Despite all the effects China’s ban has had, China’s crypto market still plays a major role on Bitcoin worldwide.

Crypto proponents believe China’s effect on Asia’s crypto market is exaggerated. 64% of all bitcoin mining operatives are located in China despite the clampdown. Bitmain, a Chinese company, runs 38% of all mining activities and controls the two biggest mining pools in the world.

Since the total Bitcoin supply is controlled, Bitcoin mining is a huge factor affecting crypto prices. Previous cases also prove that China’s mining control affects other cryptocurrencies. The crypto market cap is nearly $3 trillion, and China was once responsible for over 90% of the total trading volume of Bitcoin; whose market cap is $1.09 trillion.

The question of whether Asia still has an influence on Bitcoin rise and fall meets a resounding yes. Though we can’t fully measure to what extent, data shows Asia’s Bitcoin still controls a good per cent of the cryptocurrency market. One positive we can bring out is that crypto activities around America and Europe have increased, giving birth to Redot.com and many other outstanding exchanges.

What’s The Best Decision To Take?

A lot of speculations, theories, analyses, and advice are currently floating in the cryptocurrency space. It’s easy to get carried away or swayed by the most convincing theory.

Right now, no one knows for sure how things will turn out. So what’s the best decision to take now? Well, I can’t tell you. But for one, be slow to jump to conclusions, observe market movements, major news in the cryptocurrency market, and other things you pay attention to.

Satoshi Nakamoto created Bitcoin as a means of exchange, but now it functions as a store of value or both. This identity crisis or shift in role-playing is responsible for its high volatility and unpredictability.

Bitcoin in the long run might experience stability and a steady growth rate, or it might as well continue on its downward path. Bitcoin in the past has shown how unpredictable it can get. The best thing to do now observes and take notes.

 

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