Bitcoin continues to face resistance at the psychologically important $100,000 threshold, and there has been a shift in investor focus from BTC to altcoins. In particular, tokens that rallied in the 2021 bull run and metaverse tokens like Decentraland (mana) and Sandbox (sand) have seen a resurgence in trade volume across centralized exchanges such as Upbit.

Ethereum and ETH Derivatives Market Trends

Ethereum (ETH) has experienced a spike in open interest driven by an increased demand among derivatives traders. This is supported by metrics indicating a growing bullish sentiment among market participants. With institutional interest broadening, there is an expectation of an ETH price rally in the short term, as traders diversify their portfolios to include tokens with potential gains in this market cycle.

Altcoins and Institutional Shift

Institutional investors have pulled capital from Bitcoin ETFs, recording significant outflows. In contrast, altcoins such as Cardano (ada), Ripple (xrp), Stellar (xlm), Sei, Polkadot (DOT), and Dogecoin (doge) are gaining relevance among market participants.

Trade activity on South Korean exchanges is typically a precursor for spot trading, with recent spikes observed in trade volume across the fiat pairs of metaverse tokens and altcoins.

Influence of Legal and Regulatory Developments

Recent legal developments, such as the U.S. court of appeals overturning sanctions against Tornado Cash, signal a potential win for crypto and could catalyze Ethereum’s price. The shift in regulatory stance under the new administration may further impact the market dynamics.

Long-term Bitcoin Holders and Market Sentiment

Long-term Bitcoin holders have decreased their BTC holdings by nearly 3% in November, which has raised concerns about selling pressure on the asset. However, the demand has so far absorbed the supply of BTC being sold by these long-term holders.

Strategic Considerations for Bitcoin and Ethereum

Bitcoin is consolidating, with the closest support at $88,722, while Ethereum could rally towards a range between $3,709 and $3,760. Traders are advised to monitor technical indicators closely for signs of a reversal for Bitcoin, which could impact Ethereum.

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Key Tips for Investors

  • Monitor Bitcoin’s consolidation and Ethereum’s momentum indicators.
  • Stay informed about legal and regulatory changes that could affect market sentiment.
  • Be aware of the impact of long-term Bitcoin holders’ selling on supply and demand dynamics.
  • Consider diversifying portfolios to include altcoins with potential growth.

This article provides an overview of current cryptocurrency trends and should be read with a professional lens as part of a broader investment strategy. SEO keywords such as ‘Bitcoin’, ‘altcoins’, ‘Ethereum’, and ‘derivatives traders’ are highlighted to ensure relevance and visibility.

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