The dollar value of Bitcoin remains extremely volatile. Although there were signs of recovery over the weekend, the value tumbled this morning (Monday) as the Asian markets opened. What is the cause of this dip? Is it due to the expected repayment from Mt. Gox or the Germans offloading their Bitcoin stash? Additionally, the US Feds’ decisions on rate cuts cannot be ignored.
A Bloody Week
Bitcoin peaked at almost $74,000 earlier this year, boosted by the approval of the long-awaited spot Bitcoin exchange-traded funds (ETFs) in the United States. However, due to periodic volatility, the cryptocurrency is trading around $57,500, down by around 23 percent.
In the past week alone, the value of Bitcoin has decreased by about 10 percent.
As always, the reasons behind Bitcoin’s volatility are mixed. However, this time, the bearish sentiments might have been triggered by a few events.
Bitcoin price movement in the past 1 month
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A $9 Billion Payout
A prominent trigger might be the upcoming repayment to the creditors of the now-defunct crypto exchange Mt. Gox. After ten years of countless delays, the Mt. Gox administrator finally decided to repay the distressed creditors in Bitcoin and Bitcoin Cash.
At its peak, Mt. Gox handled 70 percent of all Bitcoin transactions. However, the exchange lost an estimated 740,000 Bitcoin, which led to its closure in 2014.
Recently, Mt. Gox-related Bitcoin wallets moved 47,228 Bitcoins. However, it was unclear if those Bitcoins were moved for the purpose of repayment. The anticipation of such a massive volume of Bitcoin hitting the market might have created selling pressure, resulting in the recent volatility.
The Mt. Gox payout is estimated to be $9 billion. However, experts believe that the $1.1 trillion Bitcoin market has the potential to absorb the pressure from the sell-off by the Mt. Gox creditors.
#Bitcoin This is the MTGOX official announcement. “We ask eligible rehabilitation creditors to wait for a while.” This is similar language to that issued during the decade creditors have waited so far. I can see most people being happy with more delays. Especially non creditors. pic.twitter.com/6sTcbTNaXY
“Mt. Gox moved [a massive amount of] BTC, signalling the start of their repayment process, which has caused some market fear due to the large potential sell-off,” Willy Chuang, COO of crypto exchange WOO X, told crypto-focused publication Coindesk. “However, it’s worth noting that despite these concerns, the long-term impact may be less severe as the market gradually absorbs the selling pressure.”
The German Sell-Off
Another major reason for the latest downward Bitcoin spiral might be the selling off of seized Bitcoins by German authorities. Earlier this year, German law enforcement seized 50,000 Bitcoins linked with a piracy website.
After months of holding onto those seized cryptocurrencies, the German government-linked wallets moved out 6,500 Bitcoins, worth about $425 million at the time. After a series of transactions, 1,000 of these Bitcoins were sent to two crypto exchanges, Kraken and Bitstamp. On-chain analyst Arkham also confirmed that the German government moved another 1,300 Bitcoins, worth $76 million, to Kraken, Bitstamp, and Coinbase on July 4, after which the Bitcoin price took a massive hit.
The German government also moved an additional 1,700 Bitcoins to an address likely moved “for an institutional service or OTC.”
UPDATE: German Government selling up to $175M BTC
In the past 2 hours the German Government has moved 1300 BTC ($76M) to exchange deposits at Kraken, Bitstamp and Coinbase.
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They have also moved 1700 BTC ($99M) to address 139Po. These funds are likely moving to a deposit for an… pic.twitter.com/ZMTxoipo5d
Despite the sell-offs, the German government still holds a substantial amount of Bitcoins from the seizure. Similarly, the US government accumulated a sizable amount of Bitcoin from seizures against illegal operations over the years.
Is It the Feds?
Although a regular event, the US Federal Reserve’s decision might be another factor behind Bitcoin’s volatility. On Thursday, the Feds decided not to cut interest rates for another cycle. Even though rate cuts are not directly related to Bitcoin, higher interest rates always lure investors to keep their money away from risky investments like Bitcoin.
Currently, the Fed funds rate is at 5.5 percent, significantly higher compared to 0.25 percent in March 2022.
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The US interest rate over the past 5 years
Room for Upward Movement
Bitcoin entered the mainstream financial market earlier this year when the Securities and Exchange Commission approved the spot Bitcoin ETFs. Prominent asset managers like BlackRock and Fidelity, along with nine other issuers, are now listing spot Bitcoin ETFs on American stock exchanges.
Further, the mining reward of Bitcoin was halved earlier this year, an event that has positively impacted the cryptocurrency’s price movement historically.
Despite the recent volatility, many analysts are still optimistic about Bitcoin. According to analysts at crypto data and research firm CCData, Bitcoin is yet to reach the top of its current appreciation cycle and is likely to hit a fresh all-time high.
CCData pointed out that Bitcoin halvings always preceded a period of price expansion, which lasts between 12 to 18 months “before producing a cycle top.” These historical time frames have yet to pass after the latest halving on 19 April 2024.
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“Moreover, we have observed a decline in trading activity on centralised exchanges for nearly two months following the halving event in previous cycles, which seems to have mirrored this cycle. This suggests that the current cycle could expand further into 2025,” the CCData report stated.
The dollar value of Bitcoin remains extremely volatile. Although there were signs of recovery over the weekend, the value tumbled this morning (Monday) as the Asian markets opened. What is the cause of this dip? Is it due to the expected repayment from Mt. Gox or the Germans offloading their Bitcoin stash? Additionally, the US Feds’ decisions on rate cuts cannot be ignored.
A Bloody Week
Bitcoin peaked at almost $74,000 earlier this year, boosted by the approval of the long-awaited spot Bitcoin exchange-traded funds (ETFs) in the United States. However, due to periodic volatility, the cryptocurrency is trading around $57,500, down by around 23 percent.
In the past week alone, the value of Bitcoin has decreased by about 10 percent.
As always, the reasons behind Bitcoin’s volatility are mixed. However, this time, the bearish sentiments might have been triggered by a few events.
Advertisement
Bitcoin price movement in the past 1 month
A $9 Billion Payout
A prominent trigger might be the upcoming repayment to the creditors of the now-defunct crypto exchange Mt. Gox. After ten years of countless delays, the Mt. Gox administrator finally decided to repay the distressed creditors in Bitcoin and Bitcoin Cash.
At its peak, Mt. Gox handled 70 percent of all Bitcoin transactions. However, the exchange lost an estimated 740,000 Bitcoin, which led to its closure in 2014.
Recently, Mt. Gox-related Bitcoin wallets moved 47,228 Bitcoins. However, it was unclear if those Bitcoins were moved for the purpose of repayment. The anticipation of such a massive volume of Bitcoin hitting the market might have created selling pressure, resulting in the recent volatility.
The Mt. Gox payout is estimated to be $9 billion. However, experts believe that the $1.1 trillion Bitcoin market has the potential to absorb the pressure from the sell-off by the Mt. Gox creditors.
Advertisement
#Bitcoin This is the MTGOX official announcement. “We ask eligible rehabilitation creditors to wait for a while.” This is similar language to that issued during the decade creditors have waited so far. I can see most people being happy with more delays. Especially non creditors. pic.twitter.com/6sTcbTNaXY
“Mt. Gox moved [a massive amount of] BTC, signalling the start of their repayment process, which has caused some market fear due to the large potential sell-off,” Willy Chuang, COO of crypto exchange WOO X, told crypto-focused publication Coindesk. “However, it’s worth noting that despite these concerns, the long-term impact may be less severe as the market gradually absorbs the selling pressure.”
The German Sell-Off
Another major reason for the latest downward Bitcoin spiral might be the selling off of seized Bitcoins by German authorities. Earlier this year, German law enforcement seized 50,000 Bitcoins linked with a piracy website.
After months of holding onto those seized cryptocurrencies, the German government-linked wallets moved out 6,500 Bitcoins, worth about $425 million at the time. After a series of transactions, 1,000 of these Bitcoins were sent to two crypto exchanges, Kraken and Bitstamp. On-chain analyst Arkham also confirmed that the German government moved another 1,300 Bitcoins, worth $76 million, to Kraken, Bitstamp, and Coinbase on July 4, after which the Bitcoin price took a massive hit.
The German government also moved an additional 1,700 Bitcoins to an address likely moved “for an institutional service or OTC.”
Advertisement
UPDATE: German Government selling up to $175M BTC
In the past 2 hours the German Government has moved 1300 BTC ($76M) to exchange deposits at Kraken, Bitstamp and Coinbase.
They have also moved 1700 BTC ($99M) to address 139Po. These funds are likely moving to a deposit for an… pic.twitter.com/ZMTxoipo5d
Despite the sell-offs, the German government still holds a substantial amount of Bitcoins from the seizure. Similarly, the US government accumulated a sizable amount of Bitcoin from seizures against illegal operations over the years.
Is It the Feds?
Although a regular event, the US Federal Reserve’s decision might be another factor behind Bitcoin’s volatility. On Thursday, the Feds decided not to cut interest rates for another cycle. Even though rate cuts are not directly related to Bitcoin, higher interest rates always lure investors to keep their money away from risky investments like Bitcoin.
Advertisement
Currently, the Fed funds rate is at 5.5 percent, significantly higher compared to 0.25 percent in March 2022.
The US interest rate over the past 5 years
Room for Upward Movement
Bitcoin entered the mainstream financial market earlier this year when the Securities and Exchange Commission approved the spot Bitcoin ETFs. Prominent asset managers like BlackRock and Fidelity, along with nine other issuers, are now listing spot Bitcoin ETFs on American stock exchanges.
Further, the mining reward of Bitcoin was halved earlier this year, an event that has positively impacted the cryptocurrency’s price movement historically.
Despite the recent volatility, many analysts are still optimistic about Bitcoin. According to analysts at crypto data and research firm CCData, Bitcoin is yet to reach the top of its current appreciation cycle and is likely to hit a fresh all-time high.
Advertisement
CCData pointed out that Bitcoin halvings always preceded a period of price expansion, which lasts between 12 to 18 months “before producing a cycle top.” These historical time frames have yet to pass after the latest halving on 19 April 2024.
“Moreover, we have observed a decline in trading activity on centralised exchanges for nearly two months following the halving event in previous cycles, which seems to have mirrored this cycle. This suggests that the current cycle could expand further into 2025,” the CCData report stated.
Dogecoin DOGE/USD experienced a 5% surge following a tweet by Elon Musk on X. This has sparked fresh speculations about the imminent payments service on Musk’s social app.
What Happened: Musk’s Friday post, which featured a screenshot of podcaster Joe Rogan’s X profile, triggered the increase in Dogecoin’s price.
The post displayed a unique dollar icon, different from the app’s tipping service, leading to speculations that it could be related to the anticipated X Payments service.
Musk responded to the speculation with a simple “true”, further fueling the rumors. Dogecoin’s price has historically been influenced by payment-related news from any of Musk’s ventures, including X, formerly known as Twitter.
There are speculations that once the service is live, it might support transactions with digital assets like DOGE, given Musk’s known fondness for the token.
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Musk’s electric car company, already accepts DOGE payments for certain merchandise purchases in its online store.
Also Read: Dogecoin’s Active Users On The Rise, Will This Impact DOGE Price?
Over the past 24 hours, DOGE has advanced 6.16% and at the time of writing it was trading at $0.4332, outperforming the stagnant Bitcoin BTC/USD prices. The token has risen 190% over the past month, trading at its highest level since May 2021.
Why It Matters: The surge in Dogecoin’s price following Musk’s tweet is significant as it highlights the influence Musk has over the cryptocurrency market.
His tweet sparked speculations about the forthcoming X Payments service, which could potentially support transactions with digital assets like DOGE.
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This is particularly noteworthy given Musk’s known fondness for the token and the fact that his electric car company, Tesla Inc., already accepts DOGE payments for certain merchandise purchases.
The rise in DOGE’s price also outperformed the stagnant bitcoin prices, indicating a growing interest in alternative cryptocurrencies.
Read Next
Crypto Analyst Predicts This Altcoin Will Explode 260% In 2024, And It’s Not Dogecoin Or Shiba Inu
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Bitcoin prices hovered around $98,608 on Saturday on international exchanges, buoyed by the euphoria over Donald Trump-led Republican party reclaiming the White House. With its total market cap touching more than two trillion dollars, the oldest cryptocurrency has witnessed a spike of 51 per cent in the past one month.
There is hope that the Donald Trump-led US administration will adopt crypto-friendly policies when it takes over in January next year for its second term. The rally got further impetus when BlackRock’s spot Bitcoin ETF options were listed on Nasdaq on Tuesday.
Indian crypto industry insiders are naturally upbeat about this rally. Balaji Srihari, Business Head of CoinSwitch, says, “Bitcoin surged to an all-time high, signalling that the much-anticipated $100,000 milestone could be within reach- many analysts predict that this mark could be achieved as early as the end of November. Since the recent US election, Bitcoin has been consistently setting new records, encouraged by expectations of a more supportive regulatory framework and a potential national Bitcoin reserve; that can legitimise Bitcoin as a government-backed asset. BlackRock’s Bitcoin ETF debuting options trading on Nasdaq is a big sign of increasing crypto adoption.”
Apart from bitcoin, other crypto tokens too have witnessed a surge. XRP, for instance, has surged 188 per cent in the past one month, and 37 per cent in the past five days alone. Ether trades at $3,354 and BNB trades at $665 on Saturday, according to Coinmarketcap data.
Shivam Thakral, CEO of BuyUcoin, says, “In the last 24 hours, Bitcoin reached a record high of $99,000. XRP led the charge with a remarkable 25 per cent increase, driven by renewed optimism surrounding a more crypto-friendly regulatory environment in the US. It is anticipated that Donald Trump’s win in the election will drive the implementation of crypto-friendly policies, which will, in turn, enhance market sentiment. As trading volumes rise and hopes for ETF approvals increase, the future looks extremely positive for XRP and the wider cryptocurrency market as we near the end of the year.”
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Vishal Sacheendran, Head of Regional Markets at Binance, says, “Bitcoin’s rally, fuelled in part by the optimism surrounding Donald Trump’s re-election, represents a transformative moment for the crypto and Web3 space. His administration’s support for digital assets could lead to more progressive regulations, fostering an environment conducive to greater institutional and retail investment in the sector. I believe that the broader crypto ecosystem could benefit from policies that promote blockchain infrastructure, and provide a better route for financial institutions to engage with crypto.”
Caution needed
Despite all the positive factors, crypto experts believe that investors should stay cautious and not get too carried away. It is common knowledge that bull runs are often followed by steep corrections. So, one should be cautious before getting too elated. “Amid the excitement, traders should stay cautious. Big price jumps often lead to sharp corrections, and using too much leverage could amplify risks during volatile periods,” says Srihari from Coinswitch.
“It is also important to note that in a bull market like this, investors should also remain mindful, conduct thorough research, and not make investment decisions solely based on market sentiment or hype,” adds Sacheendran of Binance.
Cryptocurrency Prices Today, November 23: The broader market movement on Saturday sparked bullish momentum globally. Bitcoin remains steady at $98K, while major altcoins like ADA, XRP, and AVAX surged between 14% and 25%. Notably, Hedera (HBAR) and Stellar (XLM) emerged as top performers, registering jumps of 25% to 55% in the last 24 hours.
Simultaneously, the global crypto market cap witnessed a 1.5% increase in the past 24 hours, currently at $3.33 trillion. However, the total market volume declined by 12% from yesterday and is now at $219 billion. Let’s dive into a brief report on the top cryptocurrencies by market cap and their price movements on November 23.
Cryptocurrency Prices Today: BTC Holds Steady, ETH & SOL Unchanged, XRP Soars 15%
Bitcoin (BTC) remains stable at $98K, holding its position for the past 24 hours. Similarly, Ethereum (ETH) and Solana (SOL) have shown no significant movement during this period. However, XRP has surged by 14%, leading the gainers. Among the top meme coins, Dogecoin and Shiba Inu have also witnessed a 9% increase in the last 24 hours, reflecting positive momentum in the cryptocurrency prices today.
Bitcoin Price Today
BTC price chart appears steady, currently trading at $98,550. Its intraday low and high are $97,222 and $99,655, respectively. Bitcoin’s market cap is $1.95 trillion, with a 24-hour trading volume of $76 billion.
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According to Sosovalue data, 22.85 million BTC flowed out of 12 BTC ETFs. However, BlackRock’s IBIT data is still awaited. With a dominance of 58.59%, Bitcoin remains the largest cryptocurrency by market cap.
Ethereum Price Today
Ethereum (ETH) remains unchanged, currently trading at $3,333. Its 24-hour low and high are $3,262 and $3,428, respectively, showing minimal price movement. ETH has gained 7% over the past week, indicating positive short-term performance. With a market cap of $400 billion, ETH remains strong in the market.
The 24-hour trading volume for Ethereum is $38 billion, and it commands a market dominance of 12%. ETH ETFs saw an outflow of 8.47 million, and BlackRock’s IBIT data is yet to be released, which may further influence the market.
Solana Price Today
Solana (SOL) is down by 2% in the last 24 hours, currently trading at $255. Its 24-hour low and high are $252 and $263, respectively, showing slight fluctuations. Over the past week, SOL has risen by 17.5%, reflecting strong growth. With a market cap of $121 billion and a 24-hour trading volume of $7 billion, Solana remains the fourth-largest cryptocurrency globally.
XRP Price Today
XRP price has jumped by 15% in the last 24 hours, currently trading at $1.566. Its 24-hour low and high are $1.367 and $1.621, respectively, showing strong volatility. XRP has surged by 75% in the past week and 200% in the last 30 days, reflecting impressive growth. With a market cap of $89 billion and a trading volume of $20 billion, XRP is now the sixth-largest cryptocurrency by market cap.
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Meme Coins Performance Today
Dogecoin (DOGE) has increased by 9% and is currently trading at $0.42. Its 24-hour low and high are $0.3858 and $0.4296, respectively, showing solid market movement.
Similarly, Shiba Inu (SHIB) is also up by 9%, trading at $0.00002698. Its 24-hour low and high are $0.00002437 and $0.00002749, respectively, reflecting positive momentum.
On the other hand, other meme coins like PEPE, BONK, and WIF have experienced declines of 2% to 8% in the past 24 hours. These drops indicate some volatility in the meme coin sector.
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Top Cryptocurrency Gainer Prices Today
Stellar
Stellar (XLM) price is currently trading at $0.44, marking an impressive 55% increase in the last 24 hours. Its 24-hour low and high are $0.2766 and $0.4624, respectively, reflecting significant volatility and strong market momentum.
Hedera
Hedera (HBAR) is currently trading at $0.1542, up by 25% in the last 24 hours. Its 24-hour low and high are $0.1275 and $0.1681, respectively, showing strong price fluctuations and growth.
Cardano
Cardano (ADA) price is up by 24% and is currently trading at $1.09. Its 24-hour low and high are $0.85 and $1.137, respectively, reflecting significant movement, and it is the ninth-largest cryptocurrency by market cap.
Top Cryptocurrency Loser Prices Today
Peanut the Squirrel
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Peanut the Squirrel (PNUT) is down by 13% in the last 24 hours and is currently trading at $1.11. Its 24-hour low and high are $1.04 and $1.31, respectively, indicating a decline in its price.
Popcat (SOL)
Popcat (POPCAT) is down by 9% and is currently trading at $1.43. Its 24-hour low and high are $1.415 and $1.612, respectively, showing a decline in price over the past day.
Raydium
Raydium (RAY) is down by 8% in the last 24 hours and is currently trading at $5.98. Its 24-hour low and high are $5.913 and $6.432, respectively, indicating a decrease in price during this period.
Besides, the hourly time frame chart continues to spark bullish momentum for cryptocurrency prices today. BTC is up by 0.4%, ETH is up by 0.5%, and Dogecoin has risen by 4%, sparking discussions among traders and investors about future price movements.
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Coingape Staff
CoinGape comprises an experienced team of native content writers and editors working round the clock to cover news globally and present news as a fact rather than an opinion. CoinGape writers and reporters contributed to this article.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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