Bitcoin Price Remains Muted as Crypto Traders Digest Developments

23 Nov 2021 · 3rd Party Analysis

Bitcoin Price Remains Muted as Crypto Traders Digest Developments

WRITTEN BY ThorFX

In Summary:

  • Bitcoin price remains muted and trading sideways near $57,000 per coin
  • Traders use the time to digest recent developments while many jump in to buy the dip

What’s Trading in the Markets?

The price of bitcoin is trading fairly flat to slightly lower early Tuesday as market participants digest recent developments. In more detail, crypto asset prices began falling last week after almost two months of uninterrupted gains.

As a result of the weekslong rally, the original cryptocurrency peaked at $69,000 per token on Nov. 10. Since then, however, buyers have been looking for fresh news to support the upside momentum. With this in mind, leading cryptocurrencies have slipped due to the lack of any major price catalysts.

Despite the recent fall, traders are unfazed. Not only that, but they are increasingly looking to buy the dip. They continue to pile into various digital assets with the belief that the rally will resume.

El Salvador Continues to Innovate with Bitcoin

Several important developments have highlighted this week’s crypto market environment. First, El Salvador is planning a Bitcoin City. Nayib Bukele, El Salvador’s President, announced the city would be powered by a volcano and would feature a giant Bitcoin symbol. Also, the city would have the shape of a circle, like a coin.

To attract foreign investments, the city will collect no taxes. To pay for its creation, the government of El Salvador will issue $1 billion in bitcoin-backed bonds.

Australia’s Financial Services Minister Praises Crypto

Another important milestone in crypto this week is the stance of the Australian financial services minister. As the crypto industry is growing, it is becoming increasingly more difficult to be ignored by governments. On that note, the Australian financial services minister, Jane Hume, said cryptocurrency is “no passing fad.”

“So as an industry, and as a government, we need to acknowledge this is not a fad. We should tread cautiously, but not fearfully,” she said at a summit on Monday.

“Don’t be the person who thought the iPhone would never take off because people would prefer to have their music and telephone on separate devices. Don’t be the person in 1995 who said the internet was just a place for geeks and criminals and would never become mainstream. And don’t be the person who argued that email was a passing fad.”

Dive Deeper in the Financial World

Meanwhile, stocks and pairs are going through some jitters after President Biden tapped Jerome Powell for a second term at the Fed. On Monday, Joe Biden nominated the current Fed Chairman Jerome Powell for another four-year term. This said, Mr. Biden said he wants the US central bank to continue with the fulfilment of current monetary policies.

Reaction in stocks was highly positive as the S&P500 pushed to a new session high. Later, however, major indexes declined from their peaks and turned lower on the day. The Dow Jones Industrial Average finished just above the flat line.

In individual stocks, shares of Tesla gained nearly 1.8% after more details appeared over the JPMorgan lawsuit. As it turned out, JPMorgan is suing Tesla for $162 million over a trade the bank helped arrange in 2014.

Elon Musk’s response, however, was rather straightforward. “If JPM doesn’t withdraw their lawsuit, I will give them a one-star review on Yelp,” Mr. Musk told The Wall Street Journal. “This is my final warning!”

What to Expect in the Markets?

Looking ahead, US traders will enjoy Thursday as a day off in observance of Thanksgiving Day. Friday’s market session will be shortened to 1pm.

Economic News Today (EST time)

On Tuesday, forex traders are looking to New Zealand’s central bank interest rate decision at 08:00 pm. It will be followed by a press conference at 09:00 pm. The event could create increased volatility in the New Zealand dollar.

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