Daily Crypto Signals: Bitcoin Struggles Below $106K, xStocks Surpass $10B in Trading Volume
Bitcoin continues to face resistance at the $106,000 level as long-term holders increase selling pressure and the US dollar strengthens
Quick overview
- Bitcoin is struggling to maintain prices above $106,000 due to increased selling pressure from long-term holders and a stronger US dollar.
- The xStocks platform has achieved over $10 billion in transaction volume within four months, highlighting significant growth in blockchain-based stock trading despite regulatory uncertainties.
- Morgan Stanley strategists suggest that Bitcoin may be entering a 'fall season' in its four-year cycle, advising investors to consider profit-taking.
- Recent developments indicate that XRP and Chainlink ETFs could soon launch, potentially benefiting the exchange-traded fund market.
Bitcoin BTC/USD continues to face resistance at the $106,000 level as long-term holders increase selling pressure and the US dollar strengthens, while Morgan Stanley strategists warn investors may be entering a “fall season” requiring profit-taking. Meanwhile, tokenized equity platform xStocks has surpassed $10 billion in total transaction volume just four months after launch, signaling explosive growth in blockchain-based stock trading despite ongoing regulatory uncertainty.
Crypto Market Developments
The cryptocurrency market is going through a time of change and consolidation as a number of factors come together to affect how trading works. Two brothers are accused of employing MEV (maximal extractable value) bots to steal $25 million from the Ethereum blockchain. Prosecutors want a retrial in February or March. This case might have big effects on how people trade on the network. Anton and James Peraire-Bueno are brothers who are accused of conspiracy to commit wire fraud, money laundering, and receiving stolen property. If they are found guilty, they could spend decades in prison.
Final filings show that XRP and Chainlink ETFs could be ready to start soon, which is a good thing for the exchange-traded fund market. Canary Capital sent a Form 8A for its XRP ETF to the Securities and Exchange Commission. Eric Balchunas, a senior ETF analyst at Bloomberg, said that the fund might start trading as early as Thursday. The Depository Trust and Clearing Corporation registration shows that several spot XRP ETFs are waiting for approval from big issuers like 21Shares, ProShares, Bitwise, and Franklin Templeton. Bitwise’s spot Chainlink ETF is also listed on the DTCC registry under the symbol CLNK.
What’s the Next Move for Bitcoin?
Since early November, Bitcoin has had trouble keeping prices over $106,000. On November 5, it fell below $99,000 and broke its 365-day moving average. Even though Bitcoin spot ETFs saw $524 million in net inflows, buyer sentiment is still low as traders switch to privacy cryptocurrencies like Zcash (up 99% in 30 days) and Decred (up 74%). Long-term investors are feeling more pressure to sell. For example, arbitrage trader Owen Gunden sent over 1,800 BTC worth more than $200 million to the Kraken exchange in only the previous week.
Morgan Stanley strategists say that Bitcoin is in the “fall season” of its four-year cycle and tell investors to take their profits before a possible crypto winter. Diaman Partners’ statistical analysis shows that Bitcoin’s usual cycle may be altering in a big way. For example, annual volatility has gone down from over 140% to about 50%, and there haven’t been any moments of exponential growth in the last few cycles. The introduction of US Bitcoin ETFs, especially BlackRock’s IBIT, which has $100 billion in assets under management, has changed the way Bitcoin grows. It is now more stable, with less volatility and more reasonable gains.
Tokenized Stocks (xStocks) Gain Traction
The xStocks platform, which was made by Backed and Kraken, has already done more than $10 billion in transactions in just four months. This shows that there is a lot of demand for tokenized financial goods. The platform has more than 60 tokenized stocks, including as Nvidia, Amazon, Tesla, and Meta Platforms. Each xStock token is completely backed by the underlying equity or ETF at a ratio of 1:1. xStocks works on Ethereum, Solana, BNB Chain, and Tron. It has more over 45,000 on-chain holders and $135 million in assets under control. There have been almost $2 billion in on-chain transactions.
The fast rise happens even if tokenized stocks are in a hazy area when it comes to rules. John Murillo of B2Broker stressed that investors own tokens issued by middlemen instead of real shares. These tokens may give them the right to rewards based on how well the underlying asset performs. According to industry data, there are about $666 million in tokenized public stocks being housed on the blockchain. Securitize and Robinhood Markets are also adding more tokenized securities to their offerings.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save