Bitcoin's value fell even further on Wednesday, adding to the year's overall struggles. The leading cryptocurrency by market capitalization fell 1% in the last 24 hours, bringing it just above the $16,500 level. Bitcoin has remained close to $16,900 in recent weeks as the market grapples with macroeconomic uncertainty and the possibility of further interest rate hikes by the US Federal Reserve.
According to Konstantin Titov, a trading analyst, the market's downward trend is likely to continue into 2023. Titov predicted that the markets would reach their low point in the second or third quarter of the year, and that negative sentiment would last for another six to eighteen months. Titov, on the other hand, added that he believes the long-term outlook will be more positive, with better developments on the horizon.
Ether remained around $1,200 for a second day in a row, a decrease of over 2% from Tuesday. Other major cryptocurrencies, including SOL and APT, saw similar declines, with drops of more than 11% and 10% respectively. This is typical for most assets during the end-of-year period, with slow trading activity.
As investors considered the impact of China lifting its Covid lockdown restrictions, US stock indexes saw a slight decline. The Nasdaq and S&P 500, both heavily influenced by technology, fell 1.4% and 1.2% respectively. It is common for stocks to have sideways movement at this time of year, but the significant sell-off of Tesla shares and mass cancellations by Southwest Airlines could potentially change this trend.
Amid the ongoing crisis at crypto exchange FTX, there were a couple of slightly positive stories in the industry headlines for at least one day. Bitcoin miner Argo Blockchain (ARBK) was able to avoid bankruptcy by agreeing to sell its mining facility in Dickens Country, Texas to Galaxy Digital for $65 million and obtaining a $35 million loan from the cryptocurrency-focused financial services company.
During the day (Hong Kong time), it was reported that MicroStrategy, a business software company co-founded by cryptocurrency advocate Michael Saylor, has increased its bitcoin holdings. The company's subsidiary, MacroStrategy, purchased approximately 2,395 bitcoins for $42.8 million between November 1st and December 21st.
Konstantin Titov, a well-known figure in the cryptocurrency industry, recently commented on the current state of the market and its impact on options trading. Titov noted that the recent improvements in macroeconomic conditions and the stability of cryptocurrency prices have been troublesome for options traders.
"If you're an options trader, not a lot of volatility," Titov said. "Whenever there's any price movements, they're not going to be sustained long enough form some notable trend." He explained that the lack of sustained price movements makes it difficult for options traders to make informed decisions and profit from the market.
In addition to this, Titov stated that the current market conditions are not ideal for investing in cryptocurrency assets. "It's just not the best time for investing in crypto assets," he said. This may be due to the lack of significant price movements and potential for profit.
Overall, Titov's comments highlight the challenges that options traders are facing in the current market environment, as well as the potential risks of investing in cryptocurrency assets at this time. It is important for investors to carefully consider their options and make informed decisions based on their own financial goals and risk tolerance.