Bitcoin is cautiously growing in price

Bitcoin (BTC) is in a cautious uptrend, and market sentiment is gradually becoming more positive. However, the market is still very uncertain, and currently neither bulls nor bears are taking over.

The BTC price has risen above $41,000, and held above $41,300 yesterday. Yesterday afternoon, when Bitcoin surpassed the $41,500 mark, the price made another big jump. Bitcoin briefly broke through the $42K mark, and then peaked at around $42,200.

However, Bitcoin was harshly rejected there, after which its price plummeted. At the time of writing, Bitcoin is making another attempt to climb up, and its price, according to Coinmarketrate.com, is in the range 41 000 – 42 000 US dollars.

Whether Bitcoin has enough momentum now to break through the $42,000 mark remains to be seen. And even if it succeeds, many analysts are still convinced that the BTC will be pushed back to the $40,000 mark and may fall again. However, even this is far from the case, and if we zoom out a bit, the price seems to still be in a cautious uptrend and is setting higher lows.

Bitcoin Market Trends

More positive market sentiment may also be associated with the approval in the US of a new Bitcoin futures exchange-traded fund (ETF), or a fund traded on an exchange. It seems that this gives investors optimism about the approval of Bitcoin ETFs, although many are still skeptical about this.

In addition, the price of the US dollar index (DXY) made a big dive yesterday, which is usually good news for Bitcoin.

DXY is recovering a bit this morning, and the main question at the moment is whether DXY will break through the $100 mark again or be rejected here.

Concerns were raised yesterday about the Bitcoin of Tesla, an electric car company owned by Elon Musk, the richest man on Earth. Meanwhile, new data shows that Tesla has not sold or bought a single BTC since the beginning of last year.

Developments for military technical cooperation

The so-called chain data shows that whales have accumulated a large amount of Bitcoin over the past month, according to analyst Will Clemente. This is a very bullish sign for the long term.

As a result, the number of Bitcoins on cryptocurrency exchanges is now even at the lowest level in the last four years, according to the analytical company CryptoQuant.

However, the data of analyst Cauca Oliveira shows that Bitcoin can simultaneously be in the accumulation phase and the distribution phase, or capitulation. Perhaps this indicates a great uncertainty of investors in the current market

However, expert Oguzhan Shengor reports that the phase of surrender may come to an end, based on the following diagram of the dormant state flow adjusted for entities from the analytical company Glassnode, which claims that the “weak hands” have already exhausted themselves.

Well, Whalemap adheres to a simple approach: above $42,000 – bullish, below $38,000 – bearish.

And now it’s time to talk about altcoins, as the prices of Ethereum and XRP are turning red, Dogecoin is falling the most.

What’s up with the alt-season?

While BTC continues to grow cautiously, the largest altcoins are losing ground today. Most of the 100 largest cryptocurrencies today are colored red, but overall everything remains relatively calm. The total market capitalization increased by half a percent to 2.035 trillion US dollars.

• Ethereum is Frolicking at $3,000

Yesterday morning, the Ethereum (ETH) exchange rate rose above the $ 3,100 mark, but at first it barely managed to stay on it. In the afternoon, the Ethereum price broke through this mark and briefly peaked above $3,150, but was rejected there. Then ETH dropped to the level of 3,050, but here it was able to make a small rebound. This morning, ETH has not yet managed to break through the 3,100 mark, but at the time of writing, the price is making a new attempt. This puts ETH just below the price of 24 hours ago.

ETH price movement. Source: Coinmarketrate.com

• LUNA and DOT have grown slightly

Terra (LUNA) did not reach such a strong peak yesterday, but it did not fall so much after that. Now LUNA is trading at $95 again, and is in the black by half a percent.

Polkadot (DOT) briefly dropped to $17.8, but then recovered and is hanging around $18.8 this morning, rising 0.3%.

• ADA, SOL, BNB, AVAX are slightly reduced

Cardano (ADA) is experiencing a bit more recovery issues and is currently returning to the $0.95 mark, which is slightly lower than the price 24 hours ago. Solana (SOL) follows a similar price movement, but at $107 is down 0.5% compared to 24 hours ago. The Binance coin (BNB) drops by 1% to $420. Avalanche (AVAX) also declined by 1% and has not yet been able to break through the $79 mark.

• XRP, SHIB, DOGE fall more sharply

Ripple (XRP) is down 2% and is currently trading at $0.75. Shiba inu (SHIB) is down 2.3% to 0.000025. Dogecoin (DOGE) is the biggest loser among the largest cryptocurrencies today, falling 3.5% to $0.14.

Cryptocurrency Top 100 Strongest Players and Losers

In the top 100, most cryptocurrencies are in the red by less than 3%. However, Sandbox (SAND), Harmony (ONE), Framax Share (FXS) and Arweave (AR) have already fallen by more than 4%. For the near protocol (NEAR) and waves (WAVES), it is about 5%. Loopring (LRC) is down almost 6%, while apecoin (APE) and stepn (GMT) are down about 7%. Chain (XCN) has dropped almost 10% today.

As for the greenery, today it is not numerous. However, Zilliqa (ZIL), eCash (XEC), Basic Attention Token (BAT) and Convex Finance (CVX) grew by about 4%. Monero is growing by 5%, Theta (THETA) – by 6%, Synthetix – by 7%, Eos (EOS) – by 8%, and Panakeswap (CAKE) – by almost 10%.

Crypto Investors Earned $163 Billion in 2021

According to a new study by the analytical company Chainalysis, cryptocurrency investors made a profit of $162.7 billion last year. This is more than 400% more than 32.5 billion US dollars in 2020.

2021 was another strong year for cryptocurrency prices. Who won the most? Let’s find out.

The profit from Ethereum is greater than from Bitcoin

Of course, BTC and Ethereum (ETH) accounted for the largest part of the increase – 93% of the total volume. Ether with an indicator of $ 76.3 billion even slightly exceeded Bitcoin ‘s indicator of $ 74.4 billion . The reason for this is the active development of the decentralized finance (DeFi) market in the Ethereum network, the researchers say:

“We believe that this reflects the growing demand for Ethereum due to the advent of DeFi in 2021, since most DeFi protocols are built on this blockchain, and use Ethereum as the main currency.”

The amount of profit from cryptocurrencies by country

American investors accounted for the largest share of profits – about $ 47 billion, or 29% of the total. It is followed by the United Kingdom with $8 billion (5%), Germany with $6 billion (3.6%), Japan with $5.5 billion (3.4%) and China with $5 billion (3.1%). The Netherlands is in 12th place with $3.2 billion (1.9%).

However, Chainalysis acknowledges that these are rough estimates. The company can only view blockchain data and when money is entered and withdrawn on exchanges. Chainalysis did not consider individual accounts or possible taxation. In addition, the research company reports that it was difficult to separate the data by country, since blockchain transactions do not contain geographical information.

“This method is not ideal – ideally, we would like to calculate profit at the level of an individual or wallet, and not at the service level, but this method still gives us a reasonable estimate of the total profit of cryptocurrency users in a given country.”

Whatever it was, there is a huge profit on the face and the adoption of cryptocurrencies around the world, which will contribute to an even greater growth of the crypto market.