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On Thursday, December 21, 2023, Bitcoin experienced a significant surge in prices, followed by a rapid retreat to test levels. However, the noteworthy development was the staggering $139 million liquidation across the entire network in the past 12 hours, with a significant portion attributed to the liquidation of short positions. The liquidation heatmap indicates that large-scale liquidations were primarily concentrated around $43,800. Despite this, the scale of liquidation remains relatively small compared to previous occurrences.
This market volatility has captured the attention of investors, especially those holding short positions. The instantaneous fluctuations in Bitcoin prices and large-scale liquidations may lead to unstable market sentiment, prompting investors to closely monitor future market trends and risks.
Yesterday, Solana (Salina) exhibited remarkable performance, surpassing Repo in terms of market capitalization and securing the fifth position in the cryptocurrency market, according to the latest data. From the 4-hour trend chart, Solana experienced a strong uptrend after retracing from the ML50, climbing from around $73 to $83, marking a new high for the year.
The rise of the Solana network has sparked discussions questioning whether Ethereum can maintain its leading position in the cryptocurrency field. Solana's reputation for offering cheaper and faster transactions, along with its focus on mobile applications, has become a key factor in attracting new users.
With Sol's ascent in market rankings, the cryptocurrency market landscape may undergo changes. Investors and community members are expressing their views on this shift, prompting deeper reflections on Ethereum's future competitive advantages. As the cryptocurrency market continues to evolve, Sol's rise may drive the industry in new directions.
However, popular topics related to the full decentralization of chains do not seem to have captured the attention of these user groups. The recent rapid rise in Solana prices has multiple factors, including a surge in network activity, successful issuance of Solana's SPL tokens, and a frenzy of airdrops. These factors led to the instant sellout of Solana's Saga phones on Coinbase and premium trading on the secondary market.
It's worth noting that before the listing of Bonk Coin, Solana's phone sales had already seen significant growth. Each phone received 30 million Bonk, providing new momentum to Solana's phone sales. The listing of the mentioned sound currency Bonk seems to have become a turning point in this process.
Additionally, some centralized exchanges have listed the newly launched SPL token Jito, and Jito's airdrop has brought substantial profits to participants. This also increases people's demand for Solana in global applications. Just three weeks ago, on November 29, the growth trend of Solana in global applications had already become apparent.
In summary, the current cryptocurrency market is still full of uncertainty, but the development trends of Sol and Solana indicate future opportunities and potential. Recently, Selena's Total Value Locked (TVL) rapidly increased from $600 million to an impressive $1.2 billion, almost doubling, mainly due to the surge in recent Solana activities, expected upcoming airdrops, and token issuance.
Excitingly, hardware wallet provider Trezor announced full support for Solana and its SPL tokens, adding new support to Solana's ecosystem. In this context, the market widely anticipates that Solana's price may break through the key resistance level of $100, bringing more positive news for investors.
Yesterday, the U.S. Securities and Exchange Commission (SEC) experienced some new developments in the review process of Bitcoin ETF applications. The SEC held two crucial additional meetings with digital asset management company Grayscale and one of the world's largest asset management companies, BlackRock.
In the meeting with Grayscale, the discussion focused on a significant rule change. Once approved by the SEC, this rule change would allow Arka, under the New York Stock Exchange (NYSE), to list and trade Grayscale's spot Bitcoin ETF. Grayscale's CEO, Michael, personally participated in the discussion, providing support for the advancement of this project.
Within just a month, Grayscale, a digital asset management company, held its fourth meeting with the U.S. Securities and Exchange Commission (SEC), making it the sixth meeting between the two parties. Simultaneously, asset management giant BlackRock had another discussion with the SEC, with the focus on proposed rule changes that, if approved, would allow Nasdaq to list and trade BlackRock's iShares Bitcoin Trust.
Representatives from BlackRock and the Nasdaq stock market participated in this meeting, marking BlackRock's fifth dialogue with the SEC in a short month. In previous meetings, BlackRock had discussed cash and in-kind redemptions, as well as the creation of models. On December 18, BlackRock compromised with the SEC, updating its application file, indicating that it would adopt a cash model.
In this meeting, BlackRock and Nasdaq stood together, meeting with the SEC to discuss the operation and regulatory issues of spot ETFs. The market generally believes that this topic has entered a decisive stage. Although the decision deadline is set for January 10, approval could be obtained before then.
Looking ahead, we can expect to see more securities firms actively promoting spot Bitcoin ETFs, potentially attracting more funds than expected. While short-term inflows may not increase significantly, the long-term support from large financial institutions such as BlackRock and Ark could have a tremendous impact. In the future, we may see more reports and promotions detailing why Bitcoin should be included in investment portfolios.
It's worth mentioning that Michael Saylor recently gave interviews to CNBC and Bloomberg. His company, MicroStrategy, has been heavily investing in Bitcoin, and its assets have seen significant growth.
The approval of Bitcoin ETFs over the past 30 years could be a major revolution on Wall Street. Bitcoin was once considered difficult to buy, store, and understand, even viewed as a suspicious asset. However, with the support of BlackRock, Bitcoin has now become a secure asset. In the current chaotic global situation, Bitcoin is increasingly seen as an effective hedging tool.
According to a report published by Cryptocont, by 2024, the price of Bitcoin may exceed $160,000. Cryptocont is a company that provides on-chain data services for cryptocurrencies. The report highlights six key factors, including market volatility cycles, network activity (such as the popularity of NFTs), Bitcoin halving, the expected significant drop in U.S. interest rates in the mid to late 2024 from a macroeconomic perspective, the launch of Bitcoin spot ETFs, and the growth of stablecoin liquidity. It is expected that as more funds flow into the cryptocurrency market, the quantity of stablecoins will increase significantly, making it more convenient to obtain stablecoins.
As the stablecoin market matures, traditional financial institutions will find it easier and cheaper to borrow funds from various banks, and the speed and cost of obtaining funds through the cryptocurrency field will be superior. For the launch of spot Bitcoin ETFs, he believes it is a significant event that will make it easier for traditional market investors to participate in the cryptocurrency market. With the growth of the stablecoin market, it provides more opportunities for investors looking to increase leverage or willing to take on more risk. Another key point is the growth of stablecoin liquidity, and as more participants enter the cryptocurrency market, obtaining stablecoins will become more convenient, and borrowing costs may also decrease. Although these topics may not be frequently discussed in other media, he believes macroeconomic factors will become extremely important in the future, which is one of the reasons he likes to discuss macroeconomics. He is |
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Post time 25-12-2023 12:34:20