Bitcoin and Major Cryptos Steady as December Trading Sets In
02 Dec 2021 · 3rd Party Analysis
- Early December deals kick off with bitcoin price trading near $57,000
- Ether sits near $4,600 with a weekly high of $4,800, or just 2% from record
What’s Trading in the Crypto Markets?
The month of December kicked off already and with it, the first deals in the cryptocurrency market. On that note, as traders and investors in the digital asset space shift into gear, major crypto tokens prepare for a volatile month.
Bitcoin, the world’s biggest cryptocurrency, did not begin December with gains. In fact, the leading crypto asset jumped about 5% on Wednesday but later gave up the gains. As a result, the price of bitcoin finished the day virtually flat near $57,000 per coin.
Ether, the second-largest cryptocurrency, also attempted to go higher on the day. Efforts, however, fell short of expectations and the Ethereum coin slipped in the red for the day. More precisely, the price of Ether declined about 1% to close near $4,600.
It’s important to highlight that Ether tried to reach its current record set Nov. 10. In more detail, the token’s price advanced over 4% and reached a session high of $4,800 per coin. The price was roughly $60, or less than 2%, from the all-time high.
What’s the Outlook for Digital Assets?
Still, expectations for the cryptocurrency market remain strongly positive. To this end, analysts and market participants even anticipate a new record high for bitcoin this year. In other words, the leading crypto would need to gain about 18% to break its current record of $69,000 per coin.
Despite slight jitters in the digital asset market in recent weeks, the yearly performance of cryptos is more than remarkable. Bitcoin, for example, doubled in price as it gained 100% since January to current levels.
Furthermore, Ether has skyrocketed this year with a gain of over 540% as traders have been increasingly favorable to the token.
Overall, the entire crypto market has grown from a valuation of $770 billion in January to over $2.6 trillion today. That makes a growth rate of nearly 240% for the year.
Looking ahead, broader crypto adoption is expected to continue rising. On this note, many market participants use the current period to buy the dip.
Dive Deeper in the World of Financial Markets
In the wider financial markets, stocks and pairs remained choppy for another day. Persistent Covid-19 concerns have weighed on the market. This, coupled with increasing inflation and uncertainty, is likely to lead to elevated volatility in December.
Regardless, traders are optimistic to find new opportunities to enter stocks or currency pairs.
What to Expect in the Markets?
With this in mind, they will be watching closely the release of the US non-farm payrolls report this Friday. More precisely, the data will reveal how many new jobs were added to the US economy in November. The NFPs, for short, are among the most important indicators showing the health of the US labor market.
During the time of the release, increased volatility could present opportunities for traders to open positions.
Economic News Today (EST time)
On Thursday, market participants will be looking for the initial jobless claims report scheduled for 08:30 am.