Cardano (ADA) experienced a remarkable surge, reaching 57 cents, its highest price since August 2022, showing a 25% increase and maintaining almost 20% gains throughout the day. The boost in native tokens tied to layer 1 blockchains was driven by a steady Bitcoin price, leading to capital rotation into altcoins.
Cardano ADA price (CoinDesk)
Bitcoin Consolidates Around $43,800: Altcoin Rotation Resumes
Bitcoin hovered between $43,000 and $44,000, demonstrating resilience after a minor dip following a stronger-than-expected U.S. employment report. Altcoins, following the trend of early November’s “altcoin rotation,” witnessed substantial gains. Notable performers included Polkadot (DOT), Algorand (ALGO), Avalanche (AVAX), and Solana (SOL), posting gains between 7% and 11%.
The CoinDesk Market Index (CMI), consisting of nearly 200 cryptocurrencies, outperformed Bitcoin with a 1.5% increase throughout the day. This highlights the ongoing altcoin outperformance, particularly during periods of Bitcoin consolidation.
Bitcoin Analyst Eyes Potential Pullback: CME Gap at $39,000-$41,000
Bitcoin-focused analyst Willy Woo speculates on a potential pullback for Bitcoin to retest lower price levels, particularly in the $39,000-$41,000 range. This analysis is based on a price gap in the Chicago Mercantile Exchange (CME) Bitcoin futures market, suggesting that Bitcoin might “fill” this gap in the future.
The #Bitcoin CME Gap at 39.7k…
By my count 28 out of 30 gaps have been filled on CME daily candles (93%). The other unfilled gap is pictured in the lower left of this chart also. pic.twitter.com/EyccaJTTkr
— Willy Woo (@woonomic) December 7, 2023
Despite short-term speculation on a pullback, the outlook for Bitcoin remains positive. Hany Rashwan, CEO of digital asset management firm 21.co, notes that market observers are “underappreciating” future institutional inflows into Bitcoin. Rashwan emphasizes the potential impact of a spot-based exchange-traded fund (ETF) approval in the U.S., attracting prospective buyers currently restricted by regulations.
Bitcoin’s Bullish Future
Rashwan anticipates Bitcoin surpassing all-time highs in the next 12-18 months, emphasizing a change in sentiment among institutional players. He notes the growing interest in crypto investments, with 75% of digital asset fund inflows occurring in the past 60-90 days.
Bitcoin’s consolidation, altcoin strength, and institutional interest collectively shape a dynamic landscape in the cryptocurrency market.
