The weekly update of the crypto market in Luno

The weekly update of the crypto market in Luno

Luno has published the 49th weekly update of the crypto market, which shows that December 2020 for now is a month of difficult interpretation.

In fact in these first days of the month there is not a clear movement of the prices, so much to have to define „undecided“ the direction that will be taken within the end of the year.

All the Bitcoin Revolution indices are near to the point with which they have concluded last month, and also the price of bitcoin has remained rather firm in the past 7 days, with a volatility clearly inferior to that of November.

In fact, the past few weeks have been „crazy“, so much so that the first few days of the month are decidedly calm in comparison. It is possible that the growth trend may have been halted by an excess of enthusiasm on the crypto markets, which however has been continuing since November.

However, this 2020 has been the year of institutional investors for BTC and their purchases are continuing. Stablecoins also grew enormously in 2020, with an overall market cap increase of almost 400%.

One of the difficult things to understand is whether the price of bitcoin will remain around $19,000, or will exceed $20,000, or if the maximum has already been reached in recent days.

Luno, enthusiasm in crypto markets

The report commissioned by Luno, produced by Arcane Research and published yesterday, however, shows that premiums on futures and funding rates have fallen over the past week, indicating a much healthier situation for bitcoins than the previous week.

Correlations with S&P500 and gold are also decreasing, showing a decoupling of bitcoins from traditional markets.

However, we are in a moment of great enthusiasm, with sentiment still at its highest level, at least until yesterday.

The spot trading volumes on crypto exchanges have also set new records in recent weeks, so much so that they are now falling.

The report reveals, however, that the volatility of the bitcoin price remains high, despite having been reduced, so it is difficult to imagine that the period of lateralization could continue for much longer.

In fact between the various hypotheses that it proposed there was also that one that the price would have been able to go down just over 18.000$, thing then avveratasi today, with the successive support to quota 16.000$, in case of breaking.

In other words, the current situation must be considered uncertain, so much so that the growing trend that started in October, and continued in November, could also have been temporarily interrupted. However, it is difficult to establish how it could evolve.