Trading was light across different crypto exchanges on Christmas day and Boxing Day in the U.K.; ether’s price was roughly flat.
Good morning. Here’s what’s happening:
Market moves: Bitcoin moved little, as the market activity was muted over the holiday weekend in the U.S.
Technician’s take (Editor’s note): Technician’s Take is taking a holiday hiatus. In its place, First Mover Asia is publishing the fourth in a series of stories on the year in cryptocurrency markets by CoinDesk markets analyst Damanick Dantes.
Catch the latest episodes of CoinDesk TV for insightful interviews with crypto industry leaders and analysis.
Bitcoin (BTC): $50,818 +0.4%
Ether (ETH): $4,077 -0.2%
S&P 500: $4,725 +0.6%
DJIA: $35,950 +0.5%
Nasdaq: $15,653 +0.8%
Gold: $1,807 +0.1%
Bitcoin, the No. 1 cryptocurrency by market capitalization, retreated to below $50,000, after a “Santa rally” sent it above $51,000 Friday. At the time of publication, bitcoin had regained ground and was hovering around $50,800.
Crypto trading activity was mostly muted on Christmas day and the day after, Boxing Day in the U.K. Bitcoin’s trading volume across major centralized exchanges was low.
Ether and other major alternative cryptocurrencies also moved little over the weekend: At the time of publication, ether was changing hands at about $4,070, slightly down from Friday’s rally to above $4,100.
Although still down from its 30-day high, polkadot (DOT) was one of the top gainers over the weekend, up over 8% in the past 24 hours.
Year-end market wrap
Market Wrap Year In Review: Remembering Bitcoin’s FUD-Fueled Crash: As crypto markets moved through April and May, many buyers began to cash out as fear, uncertainty and doubt (“FUD”) overwhelmed traders. Concerns included U.S. capital gains taxes on digital assets, bitcoin’s environmental footprint and an outright ban on crypto mining in China.
Hello, Market Wrap readers! During the final two weeks of 2021, we’re using this space to recap the year’s most dramatic moments in cryptocurrency markets – and highlight the key lessons from this fast-evolving corner of global finance. Over a series of eight posts starting on Dec. 20 and running through Dec. 30, we’ll recap what shook crypto markets this year. (For the latest digital-asset prices and news headlines, please scroll down.)
On Wednesday, we recapped how Tesla’s bitcoin acceptance and Coinbase’s direct listing helped send bitcoin’s price to a new all-time high near $65,000, which turned out, in hindsight, to be the market peak. Today, we’ll show how some traders and investors began to cash out in April and May as concerns mounted over U.S. capital gains taxes, bitcoin’s environmental footprint and an outright crypto ban in China. It seemed like the fear, uncertainty and doubt – FUD, or crypto-speak for negative news – was coming all at once.
All it took was a New York Times headline in mid-April that U.S. President Joe Biden was planning to roughly double the tax on capital gains or proceeds earned from selling assets – with provisions deemed unfriendly toward cryptocurrencies – to end hopes of a rally back toward bitcoin’s all-time high near $65,000. After a powerful bull run earlier in the year, bitcoin’s price decline suddenly accelerated.
“The cryptocurrency was already on the defensive,” Pankaj Balani, co-founder and CEO of the Singapore-based Delta Exchange, told CoinDesk in an email at the time. “The tax news invited more profit taking.”