As market activity picked up following the New Year’s festivities on Tuesday, Bitcoin made substantial improvements toward the $17,000 milestone. The Federal Open Market Committee (FOMC) minutes report is scheduled to be released tomorrow, and as traders prepare for its release, there has been a resurgence in interest in Bitcoin trading.
In addition to Bitcoin’s progress, Ethereum also maintained its value above $1,200 during Tuesday’s trading session
While investors awaited the relaunch of the Federal Open Market Committee’s (FOMC) minutes report on Wednesday, Bitcoin (BTC) edged closer to the $17,000 level on Tuesday. After dropping to a low of $16,666.92 below 24 hours earlier, the BTC/USD exchange rate rose to a high of $16,760.45 throughout the trading period.
With this most recent development, Bitcoin was getting close to a crucial resistance level of $16,800, which it has previously had trouble breaking through. Recently, there has been a lot of market volatility, especially after the New Year’s festivities
The chart clearly shows that Tuesday’s movement was brought about by the 14-day RSI reaching a resistance level. The index is currently at 47.18, barely under the 48.00 resistance level. The price has been unable to increase further and pass through the $17,000 level because of this barrier.
Only 20% of the weekly staked ETH is in money, causing it to fall to its lowest levels ever.
The statistics that were published on January 4 also revealed that 80% of the ETH invested is currently experiencing losses. Those that risked ETH at lesser prices than the present values are the stakes that just so occur to be a portion of the 20% still in the money.
The data below shows that a sizeable amount of Ethereum (ETH) that has been staked was committed to staking when the price of ETH was still around $600. This time frame began in December 2020 with the introduction of the Beacon Chain. A startling 80% of the ETH that is currently staked was committed to staking at values equivalent to or over $1,200, even though the price of ETH has since climbed to a level that is now 50% greater than its price in 2020.
It has been a rough few months for Ethereum stakers, as the amount of ETH being staked every week has seen a significant decline following the massive losses that were recorded in the final quarter of 2022. Before this period, an average of around 150,000 ETH was being staked per week. However, over the past week, that number has plummeted to just 25,000 ETH.
This decline in staked ETH can likely be attributed to the extreme market conditions that have caused many investors to become cautious. If Ethereum’s downward trend continues, there is a possibility that we could see a mass withdrawal of ETH from staking contracts once the withdrawal mechanism is implemented later this year.
While it is impossible to predict exactly how the market will behave in the future, it is clear that the current situation has caused many Ethereum stakers to rethink their investment strategies. Some may choose to hold onto their ETH in the hopes of a market recovery, while others may opt to withdraw their funds and look for more stable opportunities.
Regardless of the path that individual stakers choose to take, it is important for all investors to carefully consider their options and make informed decisions that are in line with their own financial goals and risk tolerances. With a bit of careful planning and a little bit of luck, it is possible to weather even the most volatile market conditions and come out ahead.
Ken Emmanuel is a Blockchain Content writer, a Web3 Enthusiast and a Social Media Management Strategist, he likes writing educative contents to help people gain more knowledge and get inspired. The growth of any organization he work with is always his priority. He is a Geographer by profession and loves reading.