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Friday, December 9, 2022

Bitcoin Price Steady At $29K

Despite another upward surge in markets, Bitcoin (BTC) and other cryptos fell down on Friday. Bitcoin is reclaiming its position as the world’s most valuable cryptocurrency.

According to CoinGecko statistics, it currently accounts for 44 percent of overall crypto market value, the highest since October, shortly before the last bull market crested. The fall of the TerraUSD stablecoin earlier in the month has destroyed lesser tokens like Avalanche and Solana, reinforcing Bitcoin’s power.

Bitcoin Is Performing Better Than Most Cryptocurrencies

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After nearly nine weeks of negative returns, cryptocurrency traders are still on the defensive. BTC is expected to drop 27% this month, however, it is still up 10% from its previous extreme low of $25,840 on May 12.

The cryptocurrency is still down 40% this year, compared to a 13% decrease in the S&P 500 and a 22% drop in the Nasdaq 100 during the same time period. All speculative assets have had a difficult year thus far. Prices may, however, stabilize in the short term.

On the macro front, MRB Partners, a worldwide investment research organization, predicts a comeback in equities markets if global growth conditions remain stable. The company is assuming interest rate forecasts and bond rates remain stable for a period of time, which is likely as inflation slows, first in the United States and subsequently globally. In turn, central banks are likely to temper their newfound hawkishness for a time, the MRB stated.

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If the significant connection between the two assets continues intact, a short-term gain in equities might be a tailwind for crypto. In contrast, while risk-off sentiment dominates, the decrease in cryptos may suggest a limited upside in stocks. After BTC temporarily went below $28,000 on Thursday, option traders expected price movements to level off. Bitcoin is currently trapped in a narrow range as volatility has returned to normal levels.

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