Crypto news: Bitcoin is trying to maintain bullish momentum

Cryptocurrencies are trying to maintain gains although Bitcoin and Ethereum are retreating from local peaks. The key event for risky assets will be Thursday's inflation reading from the US. Risk assets would like to finally see that the Fed's restrictive monetary policy is already yielding visible reslutions, and that inflationary pressures in the US economy are waning:

• Bitcoin was unable to stay above $21,000 for much longer, and Ethereum retreated below $1,600.  Currently, the cryptocurrencies are trading at $20,700 and $1580, respectively. Litecoin is doing slightly better, with it 'waiting' halving as early as the first half of next year;
• Polygon continues its euphoric rise after Meta Platforms named the network as a 'partner' in processing NFT token trading on one of Meta's main portals, Instagram. The cryptocurrency is approaching the top 10 largest cryptocurrencies in terms of market capitalization, falling just 1 spot short of the ranking. Its nexty 'rivals' in the ladder are projects described as 'ethereum killers' Solana and Cardano. Polygon is closely tied to the Ethereum blockchain;
• Binance announced the sale of $2.1 billion worth of FTX tokens belonging to the exchange run by Sam Bankman-Fried. The decision had to do with the controversy over Bankman-Fried's FTX-related investment firm, Alameda Research. The information provided by Binance negatively affected the FTX token, which scored a dynamic sell-off. According to Chanpeng Zhao, owner of Binance investment vehicle Frieda, Alameda Research is hedged with FTX tokens which may create systemic risk. After Binance, the FTX exchange ranks second in terms of daily user trading volume;
• Alameda Reserach has referred to Binance's information and offered to buy back from Binance all tokens sold at a price of $22. If Alameda actually does so, the value of its token holdings will increase by more than $2.1 billion from $5.8 billion to nearly $8 billion. According to Alameda's recently published report, the company has $14.6 billion in assets and $8 billion in liabilities, of which $7.4 billion are loans.

Polygon's number of daily active users has nearly doubled since the beginning of August. The network's average number of daily users reached 248,000. On October 25, the network peaked in terms of the volume of transaction fees, their value reaching nearly $132,000 at the time. However, looking at the partnership with the partnership, these results could improve significantly thanks to the popularity of NFT. Instagram has nearly 1.45 billion users. Source: CointelegraphCryptocurrency market sentiment remains negative. The Fear and Greed Index indicates 'Fear', but in October it was 'Extreme Fear', the improvement in sentiment is noticeable. Source: alternative.meDespite the general slowdown in the cryptocurrency market, bitcoin adoption in some countries around the world is still doing well. The number of ATM bitcoins in Canada has increased by 28% year-over-year, adding some 400 new machines over the past 12 months. Currently, there are already 2,549 of them in Canada. source: CoinATMRadar

Bitcoin's mining difficulty is at historic highs, with the market expecting it to continue to rise steadily. The so-called 'hash rate difficulty' shows the still high interest in Bitcoin mining and the technological evolution of the chips responsible for validating transactions. Source: CoinglassThe 'Bitcoin Yardstick' chart entered the 'cheap' zone marked in green, after Bitcoin's market capitalization in relation to mining difficulty (hash rate) began to show divergence. Previous levels marked in green heralded an impending unwinding. An increase in the difficulty of mining is usually associated with increasing competition in the miner market, and the sheer activity of miners and the available computing power of the entire Bitcoin network are one of the fundamental indicators of Bitcoin market analysis. Its organic growth has usually heralded a reversal of the downward trend. Source: Glassnode

Polygon chart, H4 interval. The cryptocurrency is in a dynamic uptrend. The RSI has cooled down, however, it still holds near 70 points signaling overbought conditions. Source: xStation5Bitcoin chart, H4 interval. The price of the major cryptocurrency remains above major support at the SMA 200. A drop below it could break the uptrend line and trigger a retest of $20,000. Source: xStation5