CRYPTOCURRENCIES BREAK KEY SUPPORT LEVELS, XBIT DATA SHOWS SURGE IN STABLECOIN TRADING

November 14, 2018 (CoinWorld.com), the global cryptocurrency market is under pressure, and today Bitcoin prices dropped below 98,000, and this is the third occasion that the cryptocurrency has dropped below the 100,000 mark. Such a drop is causing a new wave of anxiety in the markets. According to industry information, with the decline in prices, more than 700 million long positions were liquidated, and market panic escalated at an alarming rate. The Crypto Fear & Greed Index dropped to 15 points, which is almost the lowest level in seven months, indicating a significant decline in investor confidence. It is in this context that XBIT decentralized exchange data indicated that the volume of trading in stablecoins is increasing by a large margin, which is indicative of an increase in the market demand for safe-haven assets.

Cre: Twitter: XBITDEX

The market capitalization of Bitcoin equals approximately 2.11 trillion despite the rise in volatility in the short term. A number of market analysts indicate that this is mostly adjusted by changes in the expectations over the Federal Reserve interest rate policy, where market expectations that the Federal Reserve would cut interest rates in December are slowly declining. According to the remarks of the financial institutions, the essence of the current volatility of the market is macroeconomic factors, a stronger dollar, and reversal of ETF fund flows. The market sentiment indicators on the XBIT platform show that in the short-term, the market sentiment is dominated by the bearish side, though long-term holders are still optimistic.

CoinWorld claims that, in addition to Bitcoin, XRP is also a hot place in the market. The first XRP spot ETF was officially launched in the market, which was a major milestone in the market. Statistics indicate that the ETF registered 26 million dollars of trading volume in 30 minutes of inception, which implies that institutional investors are growing increasingly interested in non-Bitcoin crypto assets. In the meantime, the SEC analysis of the Ethereum staking amendment and Solana ETF of Franklin Templeton has reached an important phase, and the outcome is likely to be announced shortly. These regulatory changes can introduce new unknowns to the cryptocurrency market, and the XBIT decentralized on-chain trading platform is keen on observing these changes to maximize the user experience.

It is also worth mentioning that the flow of institutional funds is a major market indicator. According to Glassnode data, older Bitcoins are being claimed as profits by senior holders, which released about 104,000 Bitcoins into the market this month, and new buyers are taking a wait-and-see stance. It is a common phenomenon in bull markets to reach a mid-stage and not the conclusion of a bull market because of its characteristic of cooling down. The dynamics of trading based on the XBIT platform also support this opinion, with the largest holders slowly moving their assets out of volatile assets and into stablecoins and liquidity mining initiatives.

The consensus in the industry is that the performance of Bitcoin in the month of November will dictate its overall performance throughout the year. According to historical data, November has the highest performance of Bitcoin, and its historical average of more than 40 percent represents the best month of the year. Nonetheless, this seasonal trend has been tested by the peculiarities of the present market. XBIT data indicates that the long/short ratio in the exchange has reached a 3-month low, which indicates a more cautious approach by traders.

In the meantime, the cryptocurrency market is also being influenced by the uncertainty of the international policy environment. The report of the pending shutdown of the US government crisis has had minimal effects on the cryptocurrency market, unlike the recovery in stocks and gold. According to some analysts, the relationship between the cryptocurrency market and the traditional financial markets is becoming less, which can also signify that the market is getting to a new level of development. XBIT is one of the major decentralized trading platforms that assists users to better adjust to volatile financial situations in the market through improving liquidity and streamlining trading processes.

Cre: Twitter: XBITDEX

According to technical analysis, Bitcoin has the capacity to recover to an upward trend before the year ends in case it is able to sustain the support level of $95,000 in the short run. Most traders in the market feel that the current support level of about 88,000 is a major level of support over the medium term; the level may be broken to affect a further decline. The long-term positioning schemes of institutional investors, however, seem to be in no way changed; only changes in the timing of entry and position management are executed. Intellectual capital (IC) deployment data of the XBIT platform also reveals that long-term investors are adding to their allocations at the current prices.

The data published by CoinWorld shows that the market of cryptocurrency trading is experiencing some minor shifts. The revenue of the decentralized exchanges has been continuously growing during the last three months, with such platforms as XBIT recording a growth of about 25 percent each day in terms of trade volume. This underscores the growing interest in non-custodial trading solutions, particularly in a world where the uncertainty in the market is at a high level. According to the industry observers, the prevailing market conditions are filtering out any speculative projects, and only the ones that have practical applications and strong technological backgrounds will be given more consideration. XBIT is flexible to this trend, and the decentralized infrastructure offers a more transparent and secure trading environment to users. In prospect, in the short term, volatility can be expected; nevertheless, the underpinnings of the market are strong.

Cre: Twitter: XBITDEX

Even following this recent correction, a number of leading analysts believe that the price of Bitcoin may continue to hit the $114, 500 to 150, 000 mark by the year 2025. With institutional participation, the cryptocurrency ecosystem will expand as the market matures, and it gives more room to financial innovation.

It should be mentioned that the new market correction has also offered the industry the chance to look back at itself and improve. As the regulatory system becomes more transparent, projects that are compliance savvy with tech innovativeness potential will gain an edge over the following market cycle. Such decentralized platforms as XBIT are already following this trend, being innovative, also paying attention to risk management, and bettering user experience. To the market participants, the best course of action to take about the existing volatility in the cryptocurrency market could be a rational wait-and-see position based on the understanding of the nature of the ongoing correction.