What Happened To Bitcoin Over The Weekend?

For most investors, this has been a happy Christmas. The US stock market hit new highs amid rumors that the Omicron strain may not be as dangerous as previously thought. The cryptocurrency market appears to be on the same path despite the holiday season’s low trading volumes and low liquidity. 

BTC finally won the weekly battle for significant momentum, successfully breaking through the psychological barrier of $50,000. The price of the first cryptocurrency has been holding at about $50 thousand for the last four days. The Bitcoin price today is $51,333. Bitcoin is up 1.7% in the last 24 hours.

This situation repeats the situation from December 6 to 8, when the Bitcoin price kept at the same level, but then went down and dropped to 46 thousand dollars.

The decline in the price of Bitcoin has been going on since the period when in mid-October – early November the price held on a plateau with peaks in the region of 66-67 thousand dollars. Since then, the value of bitcoin has dropped by almost 30%.

In 2021, the value of Bitcoin was at its highest. In previous years, from 2017 to 2020, the price of one token did not exceed 15 thousand dollars.

ETH seems to be sensitive to BTC’s bullish move. Also, the top altcoins were growing so hard all week. LUNA and SHIB, for example, were able to show double-digit percentage gains in just a few hours. 

But that’s not all the good news. The dominance of BTC’s market capitalization has been checking support every now and then and is approaching a level that was last seen back in January 2018. If support is still broken, the market will enter a legendary phase called “alt-season”, during which there will be even more significant altcoin surges. Assets in global cryptocurrency funds rose from $24 billion in 2020 to $63 billion in 2021, Bloomberg reported last Tuesday. Bloomberg Intelligence data shows that the number of investment vehicles tracking cryptocurrency globally climbed to 80 in 2021, up from 35 the previous year.

However, there is something else worthwhile. If BTC continues to rise, it will be very important to keep an eye on funding rates. If they stay within negative or neutral territory, the crypto market will have a good opportunity to start the first quarter of 2022 with a rally. However, if funding rates go the other way, another long-term cut could well occur.