Is this the beginning of the Santa Rally’s eve? Markets Jump in Asia Session

dWeb.News Article from Daniel Webster dWeb.News

The crypto market is green once again heading into the weekend.

Bitcoin rose to $51,500 on Friday in the Asia trading session during the winter festival season with thin liquidity.

While sentiments are turning, Bitcoin hasn’t got out of its range yet and is still down 25.6% from its all-time high of $69,000.

Definitely much faster imho

— Zhu Su (@zhusu) December 24, 2021

Ether meanwhile went past $4,150 and is still keeping above $4,100. But cryptos that are leading the greens involve SAND (24%), AR (22%), and LUNA (17%). Even DeFi coins like SUSHI and AAVE are seeing a spike in their value.

The total market capital has now risen to $2.5 trillion.

The crypto fear and greed index is also slowly recovering in tandem with prices. At a reading of 41, the sentiments have recovered into just fear territory, while just last week, there was ‘extreme fear’ in the market at a reading of 23.

This could also be in open interest for Bitcoin futures which have reached $20 bln yet again, from under $16.5 bln at the end of the first week of December. However, we still have a way to go with the all-time high sitting at $28 bln from last month.

All this while, the funding rate is still low, with the highest being 0. 0125% on OKEx for USDT margined Bitcoin contracts while lowest at -0. 0113% on OKEx again but for token margined contracts.

Some unhelpful thoughts about the $BTC chart for you broseidons and sestertii

These are just 4 of the ways it could go that wouldn’t surprise fooo in the slightest

— fooo (@bitcoinpanda69) December 23, 2021

For Ether, OI has climbed to $11. 36 bln, up from $9. 50 bln just over a week back and fast climbing towards $14.5 bln ATH in early November. The latest gains in the crypto market were attributed to a wider positive sentiment within financial markets. Risky sentiments have improved in global markets, as seen in Thursday’s record-high close for the S&P 500.

While the declining tide of liquidity from central banks is expected to reduce demand for risky assets it is still being seen in the market as the prices rise.

“Even if the Fed raises interest rates investors and businesses will still be interested in high-yield digital assets. In an interview with CNBC, Jeremy Allaire, Circle CEO, stated that institutional adoption of digital assets will increase. This could be through direct ETFs or custom yield-generating products.

Hiking bear market

Hiking = headwind (ceteris paribus shallower slope), increased volatility

This calls for carrying higher cash balances and for more aggressive profit taking, i.e. More of a traders market than a holders market. It’s not for doomsday visions.

— Alex Kruger (@krugermacro) December 23, 2021

Most Asia share markets edged higher on Friday while the greenback headed for its worst week since September as risk assets record gains amidst ebbing concerns over the severity of the new COVID-19 variant Omicron.

Meanwhile, the US stock market and Treasury markets will be closed on Friday for a holiday, but the Nasdaq and S&P 500 futures gained 0.8% and 0. 66%, respectively, in Asian hours.

“Cautious optimism Omicron is more severe than Delta is supporting risks assets,” stated CBA FX analysts in a note.

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