CryptoMentor

In the Avalanche ecosystem, users burned 439,000 AVAX (worth $16.7 million) last week, reducing the circulating supply. In the Avalanche network, like the Ethereum ecosystem, all transaction fees are burned. Transaction fees on the network are based on the EIP-1559 design, which introduces a mechanism to burn transaction fees. The difference between Ethereum and AVAX is that the Ethereum ecosystem pays part of the transaction fee to validators and burns the rest, while the Avalanche ecosystem burns both. The increase in transaction fees burned is notable; While only a few thousand AVAX were burned each week between May 2022 and October 2023, the ecosystem peaked in April 2023, burning 39,000 AVAX in one day. By the end of November, 85,000 AVAX were burned, followed by a jump of 40,000 AVAX two weeks later. However, this week's burn amount hit a record high. This significant increase is largely attributed to the craze for inscriptions, which started on the Bitcoin network and spread to Avalanche and other blockchain networks. According to the Dune Analytics data table created by researcher Hildobby of Dragonfly VC, more than 75% of transaction fees paid and burned on Avalanche last week Most of it was due to operations related to inscriptions. Avalanche ecosystem users paid $13.8 million in fees for these transactions. Inscription-based tokens are created by writing code into ordinary blockchain transactions and using the external chain numbering system. They were introduced as a temporary solution since there is no native token support on the Bitcoin network. This craze quickly spread to other blockchain ecosystems for various reasons, including their low cost and the fact that they are revolutionary in the blockchain space. A total of 3.4 million AVAX has been burned through transactions made on the Avalanche network so far, worth $129 million at current prices.

As we approach the end of the year, crypto enthusiasts are eagerly awaiting the possibility of a Santa Claus rally in the market. Recent dovish comments from the US Federal Reserve on maintaining current interest rates have boosted confidence. The prospect of approval of a regulated ETF could bring increased institutional participation. Additionally, the recent decline in crypto prices presents an opportunity to buy the dip, as suggested by market analysts. As we approach the end of the year, crypto enthusiasts are eagerly awaiting the possibility of a Santa Claus rally in the market. Meanwhile, many positive and risky factors are at play shaping the potential tragedy of digital assets. In particular, the crypto market is preparing for significant moves with the recent dovish statements from the US Federal Reserve and Bitcoin Spot ETF speculations. Let's examine the expectations and potential sticking points for the festive rally. The crypto market, similar to traditional financial markets, is abuzz with speculation about a Santa Claus rally. Recent dovish comments from the US Federal Reserve about maintaining current interest rates have boosted confidence. Investors are optimistic about positive market conditions, as predictions of three interest rate cuts in 2024 are in line with the Fed's 2% inflation target. Simultaneously, speculation about the approval of the Bitcoin Spot ETF sparked a rally, building confidence among investors. The prospect of approval of a regulated ETF could bring increased institutional participation. Additionally, the recent decline in crypto prices presents an opportunity to buy the dip, as suggested by market analysts. Investors are eyeing potential gains during the festive season, which could trigger a Santa Claus rally. Finally, the anticipated Bitcoin halving event has boosted investor confidence. This could be a positive catalyst, contributing to the expected Santa Claus rally in the crypto market. What is the Santa Claus Rally? A Closer LookAs December opens, the crypto community is abuzz with speculation about a potential 'Bitcoin Santa Claus rally', drawing parallels to the notable rallies seen in 2013 and 2017. This concept, which has gained popularity especially on social media, compares the holiday season increase in Bitcoin's market value to the "Santa Claus Rally" observed in the traditional stock market. Let's take a look at the historical data that made this term popular. In December 2013, the value of Bitcoin rose from under $1,000 to $1,147. Similarly, during the 2017 holiday season, Bitcoin experienced an impressive rise, jumping from $8,500 to almost $20,000. But skeptics remember the 2021 holiday season, where although Bitcoin reached $69,000 in November, it faced a decline in December. It finished the year at $46,000, casting doubt on the credibility of a sustained Santa rally. Still, the appeal of the Bitcoin Santa Claus rally remains and continues to excite the crypto community as the year comes to an end. A Look at the Crypto Future Looking ahead to 2024, optimism looms on the economic horizon with the Federal Reserve's positive outlook. If the Fed's projections come true, the influx of cheap money could trigger a sustained rally. Additionally, the return of whales from holiday mode could serve as an additional catalyst for price increases. In addition to these expectations, the highly anticipated Bitcoin Spot ETF approval and the upcoming Bitcoin halving event have also increased market confidence.

ADA, SOL, and DOT show bullish momentum as Bitcoin strengthens. Bitcoin faced a sharp correction on December 11, falling 8 percent to $40,150, its lowest level in the last four months. This decline in Bitcoin price has triggered a market-wide reassessment and led to a debate about the potential of altcoins to lead the cryptocurrency rally. Market analysts believe that the recent price collapse is part of the ongoing price cycle and that a correction is inevitable after two months of rally. He believes that.Analysts' views on Bitcoin's latest pullbackCrypto analyst and co-founder of Reflexivity Research Will Clemente interpreted the market correction as a tool to reduce the highly leveraged crypto market and eliminate weak positions. He pointed out that this volatility is necessary. Kaleo, the co-founder of the LedgArt NFT project, expressed his belief that the recent pullback "is nothing but a healthy correction after a tremendous parabolic expansion." According to Kaleo, the leading cryptocurrency has identified a “new range” where consolidation is likely over the next few months before scaling further. Santiment noted that there has been a significant increase in social media posts advocating buying the dip. "Although Bitcoin has rebounded from its lowest levels in the last few months, altcoins have experienced a high level of buy-the-dip calls, which generally means there is FOMO and overzeal for low-priced assets." Most of the coins outperformed BTC. Altcoins are on the riseAltcoins have outperformed Bitcoin in the last seven days, making significant gains. Some altcoins have performed better in the long term. According to data from CoinMarketCap, Bitcoin is down 1 percent in the last seven days, while ADA is up 49 percent. Similarly, AVAX, DOT, SOL, and BNB also outperformed BTC. More importantly, the leading cryptocurrency managed to surpass $44,000, increasing by 60 percent in the last 90 days. Many altcoins outperformed BTC during the same period. AVAX has entered into a fierce competition with BTC and has nearly tripled in the last three months. SOL and ADA increased by 267 percent and 150 percent, respectively. ADA led the largest cryptocurrencies in terms of market value, increasing by 12 percent in the last 24 hours. While SOL ranked second with an increase of 10 percent, DOT increased by 9.2 percent in the same period. Although Bitcoin regained the $42,000 level, it increased by only 3 percent on December 13. This shows that it still follows altcoins. So can we really talk about the beginning of another altcoin season? Is the altcoin season here? Crypto trader Remen noted in his X post that he believes the recent decline could push altcoins into another bull rally. As Bitcoin dominance has peaked, the leader noted that the crypto's continuation of its uptrend may face an interruption. While there are some signals, it may be too early to say altcoin season has arrived. The community considers the period when the top 50 cryptos outperform BTC for 90 days as the altcoin season. This has only been true for a few altcoins and time will tell if it continues. According to data from Blockchain Center, only 53 percent of the largest altcoins outperformed Bitcoin in the last three-month period. Although this is a positive sign, it is still not enough to declare an altcoin season. Additionally, Bitcoin dominance is still above 50 percent.BTC dominance dropped to 52 percent on December 11, and the crypto community claimed that the beginning of the altcoin season had arrived. You can follow our account CryptoMentor to be informed about the latest developments.#ADA #SOL #AVAX #DOT #BTC $BTC 85 738111027$ADA

Bitcoin bulls' $50,000 target remains valid, according to BTC futures and options markets. Bitcoin price continues to trade below its 2023 high, a sign that investors may have underestimated the strength of the $44,000 resistance. Even though BTC price is trading below $42,000, this does not mean that reaching the $50,000 target is no longer possible. In fact, the opposite seems more likely to happen. Looking at Bitcoin derivatives data, it is clear that investors ignored the 6.9 percent decline and remained optimistic, but is this optimism enough to prove that further increases will occur? Although the liquidation of $127 million in long positions on December 11 seems significant, this amount does not even constitute 1 percent of open positions. However, it is undeniable that liquidations triggered a 7 percent correction in less than 20 minutes. Bitcoin's decline was accelerated by derivatives in the short term. Derivatives markets can be said to have played a significant role in the recent downward price movement, but this assessment does not take into account the fact that the price of Bitcoin, which fell as low as $40,200 on December 11, rose by 4.2 percent in the following six hours ignores. Essentially, the impact of strong liquidations has long since disappeared, disproving the idea of ​​declines caused solely by futures markets. To determine the trend of Bitcoin whales and market makers, investors need to examine the Bitcoin futures premium, also known as the base rate. Professional traders prefer monthly contracts because of their fixed rates. In neutral markets, these instruments trade at a premium of between 5 percent and 10 percent to account for extended contract periods.Data reveals that BTC futures premium barely fluctuated despite the 9 percent price drop on December 11, remaining above the neutral-bullish threshold of 10 percent. If there was significant oversubscription for shorts, this metric would have to drop to the 5 percent to 10 percent range. Investors should also analyze the options markets to understand whether the recent correction has dampened investor optimism. The 25 percent delta skew is an important indicator when arbitrage institutions and market makers charge excessive fees for upside or downside protection. If investors expect a decline in Bitcoin price, the skew rate will increase above 7 percent. In the opposite case, this value will be 7 percent in the negative direction. As shown above, BTC options have been trending neutral since December 5, providing a balanced cost for both call and put options. Although this situation does not seem as optimistic as previous weeks when put options were traded at a 10 percent discount, it at least shows that the correction experienced since December 10 has been resisted. Individual investors are bullish despite fluctuations in Bitcoin. After considering the two most suitable indicators for institutional investment, it should be analyzed whether individual investors using leverage influence the price movement. Perpetual contracts, also known as inverse swaps, contain an embedded rate that is recalculated every eight hours. A positive rate indicates increased demand for leverage among long positions. Note that the data shows a small increase to 0.045 percent between December 8 and December 10, equivalent to a weekly increase of 0.9 percent. At this rate, most investors have no reason to hedge their positions. Considering that the Bitcoin price has increased by 52 percent since October, this data looks quite healthy. This shows that the leverage of individual investors did not trigger the rally and subsequent liquidations. Whatever caused the price to rise to $44,700 and then drop to $41,300, it appears to be mainly due to the spot market. Although this does not mean that the bottom has been reached, it significantly reduces the possibility of gradual liquidation due to excessive optimism due to the spot exchange-traded fund (ETF) expectation. Essentially, this is good news for Bitcoin bulls. Derivatives show that the positive momentum is not lost despite the price correction. You can follow our account CryptoMentor to be informed about the latest developments. #Bitcoin #BTC #CryptoMentor #Crypto #Bulls $BTC

Work continues for the Spot Bitcoin ETF. The US Securities and Exchange Commission (SEC) held a meeting with asset management companies on spot Bitcoin ETF applications. Officials from Gary Gensler's office also attended the talks. The regulator welcomed representatives from BlackRock on Dec. 14 to discuss rule changes that would allow the crypto investment vehicle to be traded on major exchanges, according to court documents. According to Bloomberg ETF analyst James Seyffart, this was the third meeting between the parties. Meetings between asset managers and the SEC also gained intensity in previous weeks. The regulator received representatives from Grayscale, Franklin Templeton and Fidelity on December 8. Genler's staff also met with the Hashdex team at the end of November to address concerns about market manipulation and investor protections. The discussion focused on purchasing spot Bitcoin from physical exchanges on the Chicago Mercantile Exchange market. Several asset management companies, including WisdomTree, BlackRock, Invesco, Fidelity and Grayscale, are looking to launch a spot Bitcoin ETF product. Although the SEC has rejected all proposals over the years, analysts expect an approval at the beginning of 2024. If approved, products affiliated with the leading cryptocurrency exchange will be traded on Wall Street exchanges and BTC will reach more people with the product supported by the world's most authoritative investment companies. Spot Bitcoin ETF directly tracks the price of BTC. SEC approved the first futures BTC ETF in 2021. You can follow our account CryptoMentor to be informed about the latest developments.#Bitcoin #ETF #BTC #CryptoMentor #Crypto $BTC

Circle CEO Jeremy Allaire supported Bitwise's assessment, predicting that the sector will explode due to a "huge appetite" for US dollar-pegged stablecoins. Bitwise senior research analyst Ryan Rasmussen said Bitcoin is on track to reach an all-time high of $80,000 in 2024. He stated that it was prepared and that stablecoins would transfer more money than payment giant Visa in the same year. In an X (formerly Twitter) post on December 13, Rasmussen outlined ten bullish predictions for the crypto industry in 2024, with one of the main themes being the explosive growth of the stablecoin industry. According to Bitwise, stablecoins will have more volume than Visa payment volume, and dollar and other fiat pegged coins will become one of the most important elements of the crypto market. By the third quarter of 2023, Visa had processed more than $9 trillion in payments, while stablecoin transaction volume had exceeded $5 trillion. Rasmussen pointed out that stablecoins have increased from a near-zero market value to $137 billion in the last four years, and given this growth trend, by 2024 He claimed that stablecoins will have more transaction volume in 2018. Bitwise is not alone in expecting stablecoin-focused growth. Circle CEO Jeremy Allaire said in an interview with CNBC on December 13 that the demand for stablecoins will explode in the coming years as investors' need for the reliability of internet-backed digital dollars increases. Rasmussen also predicts 80,000 coins in 2024. He said it will be a strong year for Bitcoin, which he predicts will trade above the dollar, and stated that the approval of the first spot Bitcoin ETF and the halving event in April will be important catalysts for the price increase. However, Bitcoin predictions for 2024 vary widely. In November, Bitcoin commentator Plan B said he expected the average price of Bitcoin to be at least $100,000 between 2024 and 2028. BitQuant, on the other hand, has set a target of around 250 thousand dollars after the halving in 2024. Some commentators have even raised the possibility of Bitcoin eventually rising to $1 million. Bitwise predicted that the spot Bitcoin ETF would not only be approved, but would become the most successful ETF launch of all time, hitting $72 billion in assets under management over the next five years. Bitwise is among 13 financial institutions that have filed with the SEC for a spot Bitcoin ETF. It was stated that Ethereum will also develop significantly in 2024. Bitwise added that revenue will increase by 100 percent to $5 billion and that the EIP-4484 upgrade could reduce transaction costs to less than $0.01 on the mainnet. Outside of crypto assets, Coinbase appears to be the TradFi platform that will gain the most from 2024's bull market, and Bitwise said Wall St. It is forecasting a 100 percent increase in revenue next year, exceeding its expectations by a factor of ten. To be informed about the latest developments, you can follow our account at CryptoMentor.#CryptoMentor #Coin #Crypto #Bitcoin #BTC $BTC