Since the second half of November, Bitcoin has continued to trade within a narrow sideways range. The uncertainty surrounding the price trend was unaffected by the Fed meeting and high-profile regulatory relaxation. The SEC publicly refused to classify tokens and memecoins as securities, while the CFTC permitted the launch of prediction markets based on binary smart contracts with cryptocurrency bets.
Bitcoin is not yet perceived by the market as a “safe haven” asset, remaining in the high-risk category. In an environment of declining risk appetite, capital is flowing into bonds and metals, leaving digital currencies behind.
CryptoQuant analytics confirm these negative dynamics: demand for the asset is falling and the SOPR indicator suggests that short-term holders are locking in losses, putting excessive pressure on any attempts at a rebound.
While macroeconomic conditions throughout the year have supported the rise in the price of gold and silver, which is catching up with this trend, the internal structure of demand in the crypto market remains weak.
The lack of a functioning legislative framework in the US is limiting Bitcoin's movement. In the long term, there is a risk of cryptocurrencies being persecuted after Donald Trump's presidential term expires.
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Posted by tornavec