Bitcoin (BTC) saw a fresh hint of volatility at the December 27 Wall Street open as US stocks began the last trading week of the year.
Bitcoin achieves new volatility
Data from Cointelegraph Markets Pro and TradingView followed the BTC/USD pair as it fell around 1% at the open.
Despite implying a move of just $150, the event was still notable on the lower time frames, Bitcoin having avoided any form of volatility for several days.
The move came in response to a 0.6% drop in the S&P 500 at the open, with the Nasdaq Composite Index falling 1.4%.
The US Dollar Index (DXY) responded in kind, regaining previously lost ground and returning to its December 25 position.
With BTC movements still comparatively muted, Analysts’ attention turned to potential catalysts, with BNB (BNB) still a source of concern amid ongoing “FUD” over its issuer, the world’s largest cryptocurrency exchange Binance.
“The biggest risk for the cryptocurrency market is BNB”, reiterated Matthew Hyland on December 26.
“It currently has a market capitalization of USD 38.4 billion. It could potentially lose over $20 billion if support doesn’t hold. What amount is used as user collateral to back other currencies? A BNB breakdown would move elsewhere.”
The BNB/USD pair still traded above the $240 mark on the day, which represents an important line for bulls to hold.
Outside of cryptocurrencies, the news that China would end the COVID-19 quarantine for international arrivals effective January 8 did not have a significant impact on risk asset performance.
Opinions diverge on contagion from Bitcoin miners
In other places, concerns still focused on Bitcoin miners, with opinions diverging on the impact of current price action on their activities.
Analyzing the popular hash ribbons metric, Charles Edwards, CEO of asset manager Capriole, had a clear warning.
“This is by far the most brutal Bitcoin miner capitulation since 2016 and possibly ever,” declared.
“Hash Ribbons capitulation has captured the lowest Bitcoin hash rate reading of 2022 as miners filed for bankruptcy and defaulted under the great pressure of tight margins globally.”
As Cointelegraph reported, taking the opposite camp, ex-BitMEX CEO Arthur Hayes previously dismissed miner issues as a major potential source of contagion for BTC price action.
Even if they sold their reserves en masse on the open market, he claimed in early December, it would be like a drop in the ocean in terms of supply versus demand.
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