The cryptocurrency market succumbed to widespread selling pressure as bitcoin and altcoins pared off the gains accumulated in the prior week. The majority of the crypto assets, especially in the top 100 are trading presently in red as bitcoin and ethereum downswing extends further. The widespread declines are likely to have been triggered by bitcoin’s plunge from highs of $52,100 to lows of $47,300 today.
Bitcoin faced rejection after reaching highs of $52,100 on Dec. 27, shedding nearly 9% to lows of $47,300 on Dec. 28. Nearly all the altcoins in the top 100 are in the red with several tokens, Polkadot (DOT, -10.57%), Chainlink (LINK, -11.70%), Cosmos (ATOM, -12.57%) recording double-digit losses.
Interestingly amid the downturn, selected tokens are holding in the green, IOTA (MIOTA) is up by 5.63% in the last 24 hours, Aragon (ANT, +30.56%), DigitalBits (XDB, +3.11%), DeFiChain (DFI,+3.27%), EverScale (EVER, +16.79%), Alchemix (ACX, +17.13%), Enzyme (MLN, +29.61%), Harvest Finance (FARM, +109.59%) were up.
IOTA token is up as the network announces the start of IOTA staking. Token holders can begin their staking period now to receive staking rewards from today Dec. 28 for 90 days onwards.
Aragon (ANT), a decentralized platform built on the ethereum network offering a modularized way to create and manage dApps is up 30.56% in the last 24 hours and 82% in the past 7 days. The price rise for ANT comes as the concept of Web 3.0 gains traction as we approach 2022, which aided the Aragon team in achieving its aim of supporting “organizational forms that safeguard self-sovereignty.”
FARM’s price has risen as the project moves closer to full decentralization, which will include the ability for community members, known as “builders,” to install new farming tactics and update the user interface as required.
With barely just 3 days left to the end of 2021, bitcoin is down 16.18% for December. The likelihood of bitcoin closing December positive remains quite slim. Cryptoanalyst cum Economist, Alex Kruger believes all hopes are not lost, referencing historical data. He noted that bitcoin historically produced positive gains in the first week of the year referring to it as ”The first week of the year effect”.
He says ”The first week of the year effect. BTC returns first week of: 2021 +36%, 2020 +13%, 2019 +7%, 2018 +18%. Bears killed Santa, but have you heard of the Wise Men?”
He further outlines what to expect in January ”Still expect a strong crypto up market in early Jan driven by fund inflows. Then risk-off ahead of the next FOMC (Jan/26) if the next inflation print comes in too hot (Jan/12)”.
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