<a href="https://en.bitcoinhaber.net/bitcoin-mining-and-its-environmental-impact-under-scrutiny”>Bitcoin‘s price experienced a temporary correction, falling back to $43,200 after profit-taking, while altcoins like SOL and MINA remained relatively positive, indicating sustained investor appetite for risk in altcoins as the year-end approaches. Despite significant developments in network growth, mining difficulty, and hash rate reaching all-time highs, Bitcoin’s price has not mirrored these metrics, with the leading cryptocurrency seeing a 160% increase this year and reaching a 19-month high of $44,730, though it failed to surpass this level over the Christmas holiday.
Analysts including Credible Crypto, Crypto Ed, and Crypto Chase have provided their perspectives on the market. Credible Crypto remains optimistic, expecting year-end highs due to strong support in order books and less resistance upwards. Crypto Ed suggested that current levels should trigger a reversal, while Crypto Chase warned that lingering around $43,000 could exhaust the bulls’ strength and believed that the local peak was in sight as the market prepared for ETF approvals.
QCP analysts, on the other hand, mentioned the “sell the news” phenomenon in their latest analysis shared the same day, cautioning that while it may not lead to a long-term decline, it could trigger a few weeks of pullback. They also acknowledged the possibility of being wrong about the last major rally and suggested the same could happen this time.
On the macro front, things are looking up with the Personal Consumption Expenditures (PCE) coming in significantly low, exciting news as it suggests the Federal Reserve members’ year-end inflation targets have been undershot. This raises the question of why we shouldn’t expect more than the anticipated 75 basis point reduction next year.
US markets are closed today, and many other countries’ exchanges will remain closed for the rest of 2023. The last data of the year, US unemployment claims, will be announced on December 28, contributing to cautious optimism in the markets about major macro policy changes for the coming year. Recent US data has consistently supported the narrative of declining inflation.