First Mover Americas: Bitcoin Soars by Nearly 160% as New Year Approaches

• Recent Developments in Cryptocurrency Markets
• Decline in Privacy Tokens
• Consideration of Meme Coins by the Avalanche Foundation
• US Dollar Index and Bitcoin Performance
• Noteworthy Incidents

Recent Developments in Cryptocurrency Markets

During the European morning trading hours, Bitcoin$42,260 -0.64% recuperated towards the $43,000 mark after decreasing to $42,173.76 in the Asian session. Currently, Bitcoin trades at $42,884, experiencing a minor 0.45% drop over the past 24 hours. By the end of 2023, the cryptocurrency is projected to conclude the year with about 158% increase compared to its rate of approximately $16,500 a year ago. Over the year, the Market Index reflecting the weighted performance of the digital-asset market has increased by 139%.

Decline in Privacy Tokens

Privacy tokens such as Dash, Monero$165 -5.77%, and ZCash experienced as much as 10% slump after the crypto exchange OKX announced it would delist their trading pairs on January 5. The decision was influenced by feedback from users and the OKX Token Delisting/Hiding Guideline, according to a statement on the OKX website. Many privacy coins provide enhanced transaction privacy, which makes it challenging to trace transaction activities. Consequently, they are not favored by regulators.

Consideration of Meme Coins by the Avalanche Foundation

The Avalanche Foundation, a supporter of the Avalanche blockchain ecosystem, stated that it is contemplating the purchase of meme coins. This is part of an initiative recognizing the unique sectors of the cryptocurrency market. Meme coins such as COQ, Husky, and Shibx, based on Avalanche, have seen up to a 25% increase in the past day, mainly fuelled by the foundation's announcement. The choice of meme coins will rely on various factors, including the number of holders, liquidity thresholds, project maturity, and overall social sentiment.

US Dollar Index and Bitcoin Performance

The US dollar index (DXY) which determines the exchange rate of the US dollar against a set of fiat currencies, including the Euro, has witnessed a 4.7% decrease in the fourth quarter. This weakening in the DXY has likely contributed to the positive performance of Bitcoin and other risk assets during these three months, with Bitcoin rising by nearly 60% this quarter.

Noteworthy Incidents

In recent news, a 'Sell The News' event is anticipated to follow Bitcoin ETF approval. Additionally, Indonesian authorities are clamping down on Bitcoin miners who are illicitly drawing electricity from the national grid. Lastly, Crypto Exchange Catalyx has halted trading and withdrawals due to a 'security breach'.

Edited by Jonathan Stoker