On Sunday, November 20, the total cryptocurrency market cap is $821 billion, 1.93% lower than yesterday. The market cap of DeFi coins has decreased by 1.83%.
Bitcoin, the leading cryptocurrency, has remained mostly unchanged, up 6% from a recent low of $15,828. Since Bitcoin has been trapped below $17,000 for days, there has been no significant movement in the asset.
With trading volumes being so low, this was to be expected to some degree. This has a domino effect on the alternative coins, with Ethereum (ETH) in particular struggling to maintain above $1,200.
Let’s have a look at the fundamental events impacting the cryptocurrency market today.
Grayscale Avoids Proof-of-Reserves, Creating Collapse Fear
Grayscale’s impending collapse is of greater concern now that the Bitcoin fund has refused to release proof of reserves.
When asked why it couldn’t publish its wallets on November 18, the investment firm used a Twitter thread to blame security concerns for the uproar. As Grayscale and Genesis are both owned by Digital Currency Group, skepticism regarding the company’s financial stability has increased.
The crypto world wondered how this could influence Grayscale and its key product, GBTC. Reports that Genesis was unable to gather $1 billion before stopping withdrawals also fuelled the flames.
On its Twitter thread, Grayscale claims to create a separate company for each product. It claimed that sales of the underlying assets could not occur due to regulations surrounding its digital asset offerings. It was also mentioned that Coinbase Custody Trust Company is the custodian.
Neither Grayscale nor its parent business owns the Bitcoins used to back the GBTC product.
Grayscale’s Twitter thread further mentioned:
“Because of security concerns, we do not make publicly available such on-chain wallet information and confirmation information through a cryptographic Proof-of-Reserve, or other advanced cryptographic accounting technique.”
Exchanges like Binance, Huobi, and Crypto.com have issued proof of reserves in an effort to gain the community’s trust.
Hence, Grayscale’s impending collapse is keeping the crypto market’s uptrend limited.
Kraken Founder Jesse Powell Predicts Next ‘Big Event’
After the collapse of FTX, industry veteran Jesse Powell is sharing his thoughts on the current climate of the crypto sector and offering a forecast for what will pull the market out of its bear market.
As Powell explains in a new interview for the Bankless podcast, the sector will need time for recovery from the FTX catastrophe due to the loss of billions of dollars and the need to rebuild its reputation.
The halving of Bitcoin (BTC), which is expected to occur in the first half of 2019, has been cited by the founder of Kraken as a potential next bullish driver for cryptocurrency markets.
Bitcoin Price Prediction
The current Bitcoin price is $16,553, and the 24-hour trading volume is $18 billion. Bitcoin has fallen by over 0.50% in the previous 24 hours. CoinMarketCap now ranks first, with a live market cap of $318 billion. It has a total quantity of 21,000,000 BTC coins and a circulating supply of 19,212,587 BTC coins.
Bitcoin’s price is currently consolidating within a wide trading range, ranging from $15,800 to $17,200. Since Bitcoin’s price has fallen below the 23.6% Fibonacci level of $17,250, the likelihood of a downtrend remains high until the next support area of $15,800.
On the downside, Bitcoin’s immediate support is at $14,530, and the price could fall as low as $13,850 if the bearish trend continues. Because the RSI and 50-day moving average indicate a bearish bias, Bitcoin’s price may fall below $15,830 if current support fails to hold.
Today, however, the selling bias is still strong below $17,250. Increased BTC demand, on the other hand, may push the BTC/USD price above $18,250 and toward $20,000.
Compiled by Coinbold