CryptoDigest. 05.11

Bitcoin dominance declines in November. This trend is the result of increased investment in altcoins. According to CoinMarketcap, the share of the largest digital currency fell to 42.7%. On the other hand, the Ether Dominance Index has risen to 19.6% over the past few days.

Among the rest of the news, the statement of the head of the US Securities and Exchange Commission Gary Gensler, who unexpectedly hinted at the readiness of his department to begin repressions against crypto companies, is noteworthy.

Real Vision founder Raoul Pal has doubts about the completion of the current bullish cycle. According to him, the rally in bitcoin and altcoins should last either until the end of March, or generally until June next year. However, in the next six months, we will have to go through a massive market decline again. After this, the phase of consolidation will be replaced by the next stage of the ascent.

Naked king

Bitcoin (BTC) ends the week at values ​​above $ 60,000. According to many experts, it was this mark that became the updated fundamental value for the cryptocurrency.

The WhaleMap team, for example, believes that large investors will hold BTC in the event of a massive sell-off in the market. The coin needs to rely on strong leverage from the whale addresses, which were purchased at prices above $ 60,800. If the sales are aggressive and Bitcoin does not stay at this psychological level, then it will be able to claim support in the $ 47,400 and $ 57,400 regions.

Although the risks of such a massive rollback at this stage of market development are minimal. The BTC dominance index fell to 42.7%. The share of the largest altcoins – Ether (ETH) and Binance Coin (BNB) – rose to 19.6% and 3.34%, respectively. Solana (SOL) and Cardano (ADA) each gained over 2%. Investments in alternative cryptocurrencies have grown significantly since the beginning of the fall, which has led to a weakening of Bitcoin’s dominance. For example, in September, the share of the largest digital currency fell below 41%.

“The movement of the Bitcoin Dominance Index indicates to us a shift in the interest of traders towards both ether and other altcoins,” said Matthew Deeb, representing Stack Funds.

The same expert predicts that in the coming months we will see this trend continue.

What is the likelihood of a December explosion?

The prevailing view on social media and among many traders is that the current bull cycle will not end in December, but will continue in the spring and even summer.

In general, the founder of the Real Vision Foundation, Raul Pal, adheres to the same position. However, in his opinion, before taking on new heights, we will have to go through at least one phase of the collapse of bitcoin and the entire market. And the fall of the coin may occur as early as December. After the collapse, a consolidation period awaits us, which will last approximately two or three months.

The ascent starts in March or closer to June, Raul Pal said in a recent interview. He recalled the famous BTC rise in December 2017 and questioned whether such a scenario would repeat itself next month.

“I think there will be another sale, and then there will be a spurt again. As a rule, you have to go through a lot of fear before taking the next heights, ”the expert said.

Ether may become a more valuable asset after the launch of the updated version of the ETH 2.0 network. The share of cryptocurrency in the deposit contract is constantly growing, which reduces the volume of its supply in the market and eases pressure from sellers. We will see a bullish cycle, and it will be long, but before that we will have unpleasant shocks.

According to Glassnode, more than 8 million ETH are currently accumulated in the ETH 2.0 deposit contract. – this is a new record in the history of the project.

Will the SEC become the strangler of freedom?

The head of the Securities and Exchange Commission (SEC) Gary Gensler spoke at a forum on the development of the stock market last Thursday. According to him, special attention should be paid to the regulation of the decentralized finance market. The cryptosphere attracts new investors, but this segment is not yet controlled by the American authorities.

The current situation poses great threats to companies and citizens who purchase tokens. New terms related to the blockchain industry have not yet entered our life, and they need to be integrated into the business language. The SEC is tasked with checking all projects deployed in the cryptosphere for compliance with securities legislation.

Gensler argues that digital asset products should be regulated like securities. In this regard, he touched upon the topic of the lawsuit against the crypto company Ripple. As a reminder, the SEC accuses this team of placing XRP tokens, which it considers to be unregistered securities.

There is no talk of any reprisals against the industry now. All measures taken by the American regulator, Gensler called only reasonable coercion. That is, at this stage, the SEC promises not to put pressure on the cryptosphere. However, the Commission reserves the right to influence projects that are suspicious in US jurisdiction.

Sources: CoinMarketrCap, Twitter, Glassnode, The Block, WhaleMap, CoinTelegraph, ByBt