According to the cryptocurrency charts, it is evident that there has been a decreasing outlook on bitcoins. The bitcoin prices keep decreasing consecutively after reaching the highest $69,000 on November 10, 2021. On November 10, when we can reach the highest price of $69,000, the United States also announced its inflation crisis. The prices were highest for commodities in the United States of America, and the currency was also facing the risk of inflation. The inflation is as high as more than 30 years but, the condition is likely to reverse because of the China-based real estate developer. A real estate developer in China will default its launch, and it will have a massive impact on the broader market structure.
Traders on stable-coin regulations
First, there has been a massive effect of the bitcoin price fluctuations in the other coins. There have been considerable fluctuations in the prices of bitcoins in the past few months. Therefore, the policymakers are very much concerned about the same. The stable coins of the financial market are looking forward to getting a fair share of the market, but cryptocurrencies are restricting them. First, the rejection of the bitcoin ETF by the United States securities exchange commission on November 12 led to further pressure on the stable coins. Also, the rejection came from the view that stable coins are not solvent and, therefore, they can never take the place of financial currencies. However, bitcoin price manipulation remains the most matter of concern.
After the November 12, 2021 rejection of bitcoin ETF, the United States banking, housing and urban affairs committee also held a meeting. In this meeting, the primary concern was consumer protection and risk talks. Stable coins are not very suitable for the consumers, and therefore, it became a matter of days for the United States authorities. Also, on December 17, 2021, the FSOC said it was worried about stable coin adoption and other cryptocurrencies. There has been a constant increase in the fair share of these Fiat currency alternatives in the market. Therefore, the country’s financial structure is being undermined to a large extent. According to the report, the main idea of holding the meeting mentioned above is to advise the state and federal regulators to look at the available tools that can help the regulation of stable coins and cryptocurrencies.
The investors have a worsening situation, reflected in the bitcoin futures contract premium. The mood of investors is changing regarding the cryptocurrency market due to the high uncertainties. When there is a negative turn towards the futures contract’s premium in the cryptocurrency charts, the indicator turns down and says that there will be a bearish phase in the market. If you have never heard about the bitcoin future contact premium, you need to know about it first.
These are the fixed month contract, and they come with a little bit of premium. This is because the seller has to request a little bit of higher money to settle a deal for the cryptocurrency that he is selling. However, the future rate should be just 0.5% to 2% higher premium to have a good market situation. However, this rain has been neutral all along December till now. Also, now the bitcoin is trading at $49,000 on the Official Website Bitcoin System, and it is the neutral phase for the future contracts premium. However, it indicates that the institutional traders lack confidence in the market even if there is no bearish market phase yet.
About top traders
According to the data provided by different cryptocurrency exchanges, the traders who trade on large scales are increasing their bullish market bets. Yes, the vast players are accumulating many bitcoins and other cryptocurrencies to get the opportunity to play when the time is right. The main reason for accumulating many bitcoins is nothing else but strengthening the cryptocurrency portfolio. When the portfolio is more robust, you have the upper hand in the market, and you get to control many things happening in the cryptocurrency world. For example, it is assumed that the regulatory pressure imposed by the United States government will not control the country’s inflation. However, some companies are moving out of the United States to maintain their yearly revenues. Due to the falling price of BTC of the market, some investors are selling. However, others are purchasing the dip.