Finally Some Stability In Bitcoin Prices: What This Means

by 99Crypto

The Bitcoin price has found some stability on the currently lower levels, falling below $50,000 numerous times in recent weeks before bouncing back up. Prices have been very volatile lately as investors and traders try to figure out how to best take advantage of what we now know was an unsustainable bull run.

Although Bitcoin markets are often seen as a barometer of market uncertainty, prices have mostly followed an almost linear upward trajectory since the extraordinary peak a few months ago this year. As the cryptocurrency markets approach the end of the trading, most experts feel that an even bigger Bitcoin bull run is not likely. Even if Wall Street enjoys a Santa Claus rally despite the coronavirus pandemic continuing to cause economic uncertainty, Bitcoin may not lock step this time around.

Here’s what you need to know about Bitcoin for the next couple of weeks:

BTC/USD is currently trading around $48,000, with altcoins and tokens showing very similar behavior. The entire cryptocurrency markets are down from the high levels they enjoyed earlier in 2021. Even after two months of somewhat stable trading, there are still a large number of investors who are unable to take full advantage of the price action in the markets.

In general, Wall Street has been more bullish about the cryptocurrency markets. The Federal Reserve Chairman Jerome Powell said that cryptocurrencies should have a place in the global financial system, and the Chicago Mercantile Exchange, the largest exchange for BTC futures in the world, took advantage of the Fed’s statements to cement its position and launch Micro Bitcoin Futures in May 2021. A few months later, two BTC exchange-traded funds made their Wall Street debut, and they both track the performance of CME cryptocurrency instruments.

Thanks to Wall Street and CME, Bitcoin has been enjoying some much-needed stability. Now that the market is less volatile, we can look at CME trading volumes and figure out the direction BTC could be taking in the near future. As of mid-December, Bitcoin futures traders seem to be bearish, and this is the major reason a Santa Claus rally could be a hard sell this year.