Bitcoin saw a brief surge in price over the weekend but has since slipped below $50,000 at the start of the week.
Other leading cryptocurrencies are also struggling to recapture the momentum they saw last month, which took them to new all-time highs.
Ethereum (ETH), Solana (SOL) and Ripple (XRP) all dipped by around 5 per cent on Monday, while the overall crypto market is down by a similar margin.
Despite the stagnation, several leading analysts are confident of a resurgence before the end of the year, with some even predicting a record-breaking end to 2021.
The market could be buoyed by positive news – such as WhatsApp’s new cryptocurrency pilot in the US – or by the supply squeeze that continues to hit the market, as investors continue to hold and withdraw BTC from exchanges.
You can find all the latest news, analysis and expert price predictions right here.
The market has taken a slight tumble over the last hour, wiping nearly $100 billion from the overall cryptocurrency market cap.
The price slide has seen bitcoin (BTC) fall below $47,000, while Ethereum (ETH) also slid below the $4,000 mark it had managed to hold so well in recent days.
The reason for the downturn is not immediately clear, but further downward momentum could risk bitcoin falling below its 200-day moving average – a key point of resistance for the cryptocurrency. We’ll have some expert analysis on the dip shortly.
Twitter hack sees India PM declares bitcoin ‘legal tender’
Narendra Modi declared bitcoin “legal tender” on Twitter over the weekend, in what was quickly revealed to be a hack on the Indian Prime Minister’s account.
Prime Minister Modi has more than 70 million followers on the platform – more than any other world leader – and it remains unclear how his personal profile was compromised.
The tweet was removed before it could have any major impact on the crypto market, with any such news likely to be monumental for the price of the cryptocurrency. When El Salvador announced that bitcoin would be legal tender earlier this year, it prompted a market-wide rally that led to new all-time highs.
Crypto market down by over 3 per cent in last 24 hours
The prices of several cryptocurrencies, including bitcoin, ethereum, and solana have slipped by 3 to 5 per cent over the last 24 hours with the overall crypto market dropping in value by over 3 per cent during the period.
Bitcoin has slipped by nearly 3 per cent in the last day and by over 13 per cent in the last week with no signs of recovery yet.
Ethereum, solana, and cardano have dropped in value by nearly 5 per cent in the last 24 hours.
Meme coins dogecoin and shiba inu have slipped by over 3 per cent in the last day, and by over 15 per cent in the last 7 days.
The global crypto market is still down with no signs of recovery yet and is currently valued at about $2.29 trillion.
With the price of bitcoin still lingering below the $50,000, investors are looking for reasons to be positive about the coming months.
Popular crypto commentator Lark Davis has laid out seven reasons to be bullish about bitcoin in the year ahead, writing on Twitter that major industry news like a spot ETF, combined with lengthening cycles, will see bitcoin’s price continue to rise into 2022.
“Make hay while the sun shines, and enjoy many more months of good market conditions,” Davis writes. “Don’t forget to take some profits along the way.”
A decentralised exchange run on the DeFi protocol Sienna Network has enabled trading with bitcoin and monero, in a move that has been endorsed by ‘Bitcoin Jesus’ Roger Ver.
Users of SiennaSwap DEX will be able to trade BTC and XMR with the Sienna token. In the two months since it launched SiennaSwap has generated over $254 million in trade volumes, attracting users through its privacy-focussed mandate.
“Maintaining privacy while enabling DeFi for monero and bitcoin is crucial and Sienna Network seems to be doing exactly that,” Ver told CoinTelegraph.
Microstrategy, the software firm probably better known as a huge holder of bitcoins, is now holding even more of them. Chief executive Michael Saylor says it has bought 1,434 bitcoins for about $82.4 million in cash at an average price of $57,477 each.
That means it now has about 122,478 bitcoins, which it has spent $3.66 billion on. They were bought for an average of about $29,861 each, almost exactly half of what today’s cost.
The CEOs of several leading cryptocurrency firms appeared before the US House Financial Services Committee on Wednesday to answer questions about digital currencies and stablecoins.
Among them were Circle CEO Jeremy Allaire, Bitfury CEO Brian Brooks and Coinbase CEO Alesia Haas, who sat through the nearly five hour hearing held by nearly 40 lawmakers.
The market appears unmoved by the event, despite some attempts from the politicians to frame crypto in a negative light. Perhaps because those critical appeared to have little understanding of what they’re talking about.