The cryptocurrencies They take profits this Monday, November 9 after the recent increases. Bitcoin falls and stands at $98,3000, while Ethereum stands at $3,800.
The rest of the altcoins lost up to 9%, led by Polkadot, Hedera (-8.1%) and Cardano (-8.03%). Among the 20 largest cryptos by market capitalization, only USDC is trading with a slight rise of 0.3%.
Expectation with cryptocurrencies, according to Citi analysis
Digital assets are coming off a great week, spurred by the appointment of Paul Atkins as the new chairman of the United States Securities and Exchange Commission (SEC). Atkins, a well-known crypto advocate, could take a much more favorable stance towards digital assets than his predecessor, Gary Gensler, who filed numerous lawsuits against large and important players in the sector during his tenure.
In a recent analysis, Citi specialists point out that the new political appointment represents an additional boost for cryptocurrencies, which have rapidly gained ground since Donald Trump’s electoral victory in the United States. Added to the expectation of more favorable regulation for crypto assets in the country is a positive macroeconomic outlook, with the expectation that the Federal Reserve (Fed) will continue to reduce interest rates in the coming months.
However, Citi believes that Some cryptocurrencies have greater potential than bitcoin in this context. This is because the main cryptocurrency is already consolidated as a regulated asset, classified as a commodity, with products such as Spot ETFs and futures contracts, giving it less room to grow versus tokens that still face greater regulatory challenges. In the long term, according to Citi, the value of a network will depend on its practical use, its links to the macroeconomic environment and the costs associated with its production.
On the other hand, the Bitcoin ETFs have emerged as a key bullish signal in the market. Javier Molina, senior analyst at eToro, highlights thatThese funds manage more than 1.1 million bitcoinsvalued at approximately $110 billion. This volume, he points out, evidences both increasing institutional adoption and the consolidation of bitcoin as a central element in the global financial system.
“Bitcoin has evolved from being an alternative and decentralized asset to becoming a regulated and trusted option for large investors. Products like the iShares Bitcoin Trust have facilitated the integration of bitcoin on Wall Street, boosting its price and raising its relevance as a strategic tool for diversification and preservation of value in portfolios,” says Molina. Besides, advises that its inclusion in portfolios be proportional to its volatility, suggesting that it does not exceed 10% of the total.
A novelty from Amazon
In the business field, a Amazon shareholder group proposed that the company allocate at least 5% of your reserves bitcoin as a diversification strategy. The initiative, promoted by the National Center for Public Policy Research, has also been presented to Microsoft, which will put the proposal to a vote at its General Shareholders’ Meeting.
Bitcoin’s $100,000 as support?
From the technical analysis, Molina points out that, Although bitcoin has exceeded US$100,000, it failed to consolidate that level as definitive support. “Currently, we are in a consolidation phase that began last month. It is key to observe the evolution of the equity market and the Fed’s upcoming decisions on interest rates,” he explains.
Molina emphasizes that, as long as the price remains above $90,000, the outlook remains bullish, although he warns of market euphoria at all-time highs. “It is a favorable time for the distribution of assets between strong and weak hands, with an inflow volume into cryptocurrencies of US$11 billion in the last month. Furthermore, certain divergences in indicators suggest the need to act with caution,” he concluded.
Source: Ambito
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