Why did cryptocurrencies rise in price? The main events of the week

On November 24, the price of bitcoin reached $19,000 on the Binance exchange. Only $1,000 remained before the all-time high. According to analyst Larry Cermak, Binance and Coinbase have gained followers on Twitter, which demonstrates a clear increased interest in bitcoin among retail investors. Large investors also significantly revived on the cryptocurrency market: the number of bitcoin whales (addresses with a balance above 1000 BTC) has updated its historical maximum. According to Glassnode, there are already almost 2000 of them, the last time a similar figure was in 2016.

The CEO of CryptoQuant, Ki Yong-Ju, believes that stablecoins influenced the growth of the exchange rate: the whales increased their exchange balances due to stable coins, because with their help it is much easier to buy any cryptocurrency. A massive influx of stablecoins on exchanges provokes buying pressure, and this usually precedes the rise of bitcoin. However, in this situation, it is quite possible that the market will overheat, as the funding rates on the leading bitcoin futures exchanges are rising.

Yeon-Ju also expressed the opinion that the whales are preparing a new bitcoin dump. Money from large wallets flows to exchanges and indicates a future new wave of sales of the main cryptocurrency - indicators of whale bitcoin flows to exchanges have moved into the "danger zone".

In Russia, residents have become interested in cryptocurrencies much more often - the number of requests for "bitcoin" in Google Trends has increased. The trend can be traced not only in the Russian Federation, but throughout the world.

Bitcoin's rally to $20,000 came amid a year-high trading volume. The daily trading turnover reached values ​​higher than during the March collapse - $5.5 billion. Arcane Research is confident that with such price dynamics, growth above $20,000 will not be surprising.

The price of Ethereum updated its annual highs and reached $580 on the morning of November 23, here and $600 is not far off, because in just one day the increase was + 7.1%.

But the rally did not last long and on November 26, Bitcoin corrected below $17,000. Following the first cryptocurrency, others fell in price. The Ethereum exchange rate fell below $500, although two days ago it was above the $600 mark. Experts note the influx of funds to trading floors and the predominance of buying pressure, but believe in the prospects for growth to $20,000 in the near future.

Against the backdrop of a price decrease, the commission in the Ethereum network increased - $ 7.7. Most likely, the reason lies in the increased demand for transactions. Traders are confident that after the correction, ETH growth will resume, and after Bitcoin reaches the support level at $14,000, the altcoin season will begin.

Ripple (XRP) has almost tripled in price over the past week. Previously, the maximum level was recorded at $0.4974 in September 2018, this time a new maximum was reached - $0.7 per token. The capitalization of the coin has also more than tripled and amounts to $21 billion. At the moment, the number of active addresses in the network is growing and the growth in the rate may be associated with this factor.

CEX.IO Broker analyst Yuri Mazur believes that the current price increase can be explained very simply - by pent-up demand. Considering that altcoins have risen marginally compared to bitcoin and are far from their all-time highs, they will catch up and it is likely that the altcoin season has already begun.

The launch of Ethereum 2.0 will take place on December 1st. Over the weekend and Monday, the remaining amount was deposited on the deposit contract a week before the start of the zero phase. In a few days, participants will be able to take part in staking (receiving passive income from cryptocurrencies on the PoS algorithm and its variations). We are waiting for the altcoin season;)

Facebook will launch its Libra stablecoin in January 2021 in a “limited format”. The original fiat currency basket concept had to be abandoned due to regulatory pressure. Instead, the Libra Association decided to develop several fiat-pegged stablecoins. In January, with the permission of the Swiss Financial Market Supervisory Authority, a coin will be issued, the exchange rate of which will correspond to the dollar 1: 1. It is possible that in the future stablecoins pegged to other currencies will be issued. But the European Central Bank saw a threat in the planned launch for all fiat currencies.