Daily Crypto Signals: Bitcoin Faces Volatility Near $88K, Uniswap Fee Switch Proposal Gains Support
The cryptocurrency market remains in a state of uncertainty as Bitcoin trades around $88,000 with analysts divided on whether a relief rally
Quick overview
- The cryptocurrency market is currently uncertain, with Bitcoin trading around $88,000 and analysts divided on its future direction.
- Uniswap's fee switch proposal has received overwhelming community support, with nearly 62 million votes in favor, paving the way for significant token burns.
- Bitcoin has been trading within a $5,000 range for eight days, with predictions of potential upward or downward movements depending on market conditions.
- US policymakers are proposing tax breaks for stablecoin transactions and new regulations to protect against abuse in the crypto space.
The cryptocurrency market remains in a state of uncertainty as Bitcoin BTC/USD trades around $88,000 with analysts divided on whether a relief rally or further decline toward $70,000 lies ahead. Meanwhile, Uniswap’s UNI/USD transformative fee switch proposal has secured overwhelming community support with nearly 62 million votes, setting the stage for significant token burns and improved supply-demand dynamics.
Crypto Market Developments
The crypto community is still unsure about the future because they are debating whether the current conditions point to an approaching bottom or more losses. Maksim Balashevich, the founder of Santiment, said that crypto traders haven’t shown enough concern on social media to show that the market has hit a bottom. His research shows that Bitcoin might yet drop to around $75,000, which would be a drop of about 14.77% from where it is now.
The traders that think the decline will finish soon are quite optimistic, which is why there is hesitancy. In the past, this kind of feeling has not been common at actual market bottoms, which usually happen when a lot of people give up and are scared. Some people in the crypto world think the market will bounce back quickly, while others are getting ready for it to be weak for a long time.
Meanwhile, US policymakers are working on laws that are good for cryptocurrencies. Representatives Max Miller and Steven Horsford put forward a discussion draft that suggests tax breaks for stablecoin transactions up to $200 and new ways to delay staking and mining payments. The plan is to stop recognizing low-value gains from regular customer payments made with regulated stablecoins that are tied to the US dollar. The plan include protections against abuse, such as not letting brokers and dealers get rewards and giving the Treasury the power to make regulations against abuse.
Bitcoin’s Rangebound Trading Continues
Bitcoin has been stuck in a $5,000 range for eight days, fluctuating between $88,000 and $93,000 as of Sunday. People in the market are becoming more and more sure that an attempt to break out is coming soon, but there is a lot of disagreement about which way it will go. Ted Pillows, a crypto analyst, said that a relief rally might send Bitcoin up to the $98,000-$100,000 level before it goes down again. Captain Faibik, a trader, confidently declared that a positive breakout would happen within days, causing sidelined investors to rush in.
But there are still bearish scenarios to think about. CryptoQuant analyst CryptoOnchain said that the $70,000–$72,000 area is the next big downside target, when more buyers are expected to show interest. One thing that makes people worry about the downside is that more and more Bitcoin is coming into Binance. About $1.4 billion worth of BTC has been added to the exchange. The combination of a technical breakdown below $90,000 and a lot of money coming into exchanges makes it far more likely that the market will go back toward the high-demand zone. Some analysts are even utilizing Elliott Wave theory to guess that Bitcoin may go as high as $150,000, although these guesses are based on the idea that Bitcoin will finish its present corrective phase first.
Uniswap Community Approves Fee Switch Proposal
The community has overwhelmingly supported Uniswap’s major fee flip proposal, called “UNIfication,” which will go into effect later this week. Since voting began on December 20, approximately 62 million votes have been cast in favor of the governance proposal as of early Monday. This is considerably more than the 40 million votes needed to pass. Voting will end on Christmas Day, and thus far, only 741 votes, or around 0.001% of all votes cast, have been against the idea. around 1.5 million votes have not been cast.
If the vote passes, there will be a two-day timelock period before the Uniswap v2 and v3 fee changes go live on the Unichain mainnet. The plan calls for burning 100 million UNI tokens from the Uniswap Foundation’s treasury and setting up a Protocol Fee Discount Auctions system to boost the rewards for liquidity providers. Since voting started, UNI has gone up almost 25% and is now trading at $6.08, up from a seven-month low of $4.88 during the market collapse. Several well-known people in the crypto world, such as Jesse Waldren from Variant, Kain Warwick from Infinex, and Ian Lapham, a former engineer of Uniswap Labs, have supported the idea. The Uniswap Foundation has promised the community that protocol development will continue to be a top focus. They plan to give out 20 million UNI tokens through a Growth Budget to help builders and the ecosystem grow.
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