Bitcoin Steady at $61K as Whales Accumulate Amid Tensions

Important Highlights

Bitcoin remains resilient above $61,100, backed by notable whale purchasing activity.
XRP sees a decline of over 10% following the SEC’s appeal against a previous regulatory ruling.

Bitcoin (BTC) has firmly held its place above $61,100 amidst escalating geopolitical tensions, whereas Ethereum (ETH) dipped 4% to $2,390. The cryptocurrency landscape grapples with the aftermath of recent Iranian airstrikes on Israel, causing a decline in risk asset enthusiasm.

Despite the widespread market downturn, notable Bitcoin whale accumulation points towards a potential upcoming rally. CryptoQuant’s founder, Ki Young-Ju, has emphasized this trend, indicating that significant players continue to make considerable purchases despite the unfavorable macroeconomic context.

The overall cryptocurrency market witnessed an over 3% drop as traders opted to sell off mainstream cryptocurrencies. Bitcoin ETFs saw a depletion of $91.76 million during the US trading session on Wednesday, in contrast to Ethereum ETFs which experienced a positive influx of $14.45 million, breaking a previous two-day outflow trend.

XRP encountered a substantial blow, falling more than 10% within the last 24 hours after the SEC decided to appeal a court ruling that had limited its regulatory authority over the cryptocurrency market. The SEC plans to request the 2nd U.S. Circuit Court of Appeals to review the July 2023 decision that determined XRP tokens traded on public exchanges do not classify as securities.

Within the meme coin segment, MOG, the second-largest cat-themed token after POPCAT, experienced minimal price fluctuations despite being referenced on Donald Trump’s social media account. A Polymarket prediction market tracking Trump’s mentions of “mog” or similar terms before December 31 remained static at a 13% probability.

Lido’s LDO token saw a nearly 9% decrease, correlating with Ethereum’s decline. Meanwhile, artificial intelligence tokens exhibited limited movement, despite OpenAI’s announcement of a $6.6 billion funding round at a valuation of $157 billion. The AI token sector, which includes NEAR, TAO, and ICP, reported a slight 1.8% decline according to CoinGecko data.

Worldcoin, launched by OpenAI’s Sam Altman but functioning independently, also succumbed to market pressures, witnessing a 4% drop. Overall market sentiment remains cautious as investors navigate the intricate dynamics of geopolitical events, regulatory changes, and news specific to various sectors in the cryptocurrency ecosystem.