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⚡Bitcoin Faces Dip🦕

Croxroad

27 Dec 2023 — 3 min read

☕️ GM Dear Plebs!

Here is Crox Road, your daily dose of orange pill that will turn you into a Bitcoin Maxi.

The menu for today:

🐌 Bearish Trends

On Tuesday, the cryptocurrency market experienced a marginal downturn, witnessing a 0.3 percent decrease in market capitalization, settling at $1.73 trillion. Bitcoin, the frontrunner in the crypto sphere, displayed a 1.3 percent decline over the past 24 hours, reaching a value of $42,622. This resulted in a dip in Bitcoin's market capitalization to $834.6 billion, and its performance over the last seven days consistently showed a 1.3 percent decrease.

As of 1110 hours GMT, Bitcoin is at a critical juncture, with the potential for a breakthrough above the $43,600 level, which could propel it to the $44,300 mark. Currently, the support level is holding firm at $42,600. Despite recent fluctuations, Bitcoin has demonstrated resilience throughout the year, boasting a remarkable 162 percent gain year-to-date. Since achieving its 18-month high on December 8th, Bitcoin has been in a consolidation phase, with both bullish and bearish sentiments in a state of dormancy, eagerly anticipating a decisive breakout in the near future.

⏬ Market Volatility Takes a Toll

Between December 25th and 26th, the crypto market witnessed liquidations surpassing $166 million. CoinGlass reports that a significant portion of these losses is attributed to altcoins. Currently, the daily liquidation volume stands at $166.2 million, primarily involving long positions.

The impact extends beyond Bitcoin and Ethereum, with trading pairs involving Solana (SOL) and ORDI experiencing notable loss volumes. The most substantial liquidations occurred on exchanges such as Binance, OKX, and Bybit, predominantly affecting long positions, which make up over 60% of the market.

This series of liquidations unfolded against the backdrop of a 2% decline in Bitcoin's value, reaching $42,750. Notably, Bitcoin exhibited remarkable performance in 2023, outperforming global stock markets and gold with a growth rate of 163%. Analysts foresee continued growth in the crypto market in 2024, fueled by expectations of declining interest rates, easing regulatory pressure in the U.S., and potential approval of a Bitcoin ETF by the SEC.

🩱 What is the Cost to Send Bitcoin?

Sending Bitcoin from one address to another, regardless of physical distance, incurs only a transaction fee. This fee is added to each transaction and serves as compensation for miners, who play a crucial role in validating and verifying transactions before adding them to a block.

Compared to traditional means of money transfer, the cost of sending Bitcoin is notably economical. The transaction fee is variable, and many digital wallets automatically calculate the minimum required fee. Generally, a higher fee results in a faster transfer, prioritising the transaction for miners. At the time of writing, the transaction cost for most Bitcoin transactions is less than $1.

Illustrating the cost-effectiveness, a transaction of $101,000,000 was executed with a mere $121 in fees, approximately 0.00001% of the total amount sent. This example underscores the efficiency and cost savings associated with large-scale Bitcoin transactions.