Blockchain projects are driving the cryptocurrency market to the top

Bitcoin officially closed lower last week, closing near $ 21,100. At the time of writing, the bullish momentum has grown, taking the price to 21,800, the upper end of last month’s consolidation range.

Ethereum jumped 14.1% last week and added another 6.7% since the start of trading on Monday, reaching $ 1,430. Finding one step ahead of BTC this time around, ETH broke through last month’s trading range upper limit on Friday. The steady rise of the second cryptocurrency highlights the growing demand for risk among cryptocurrency enthusiasts.

Main altcoins earned in the last 24 hours, ranging from 1.8% (Dogecoin) to 16% (Polygon).

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The total market capitalization of cryptocurrencies, according to CoinMarketCap, increased 9.5% over the week to $ 998 billion. The Bitcoin Dominance Index fell 1.1 percentage points to 41.7% over the same period.

The Crypto Fear-and-Greed Index remained unchanged for the week, returning after dropping to 24 points (extreme fear). On Monday, the index was down to 20, but recent market momentum suggests the market is about to move out of “extreme fear” territory.

Bitcoin rebounded in the second half of the week after all of its first declines. BTC has been consolidating below its 200-week moving average for nearly a month, now standing at around $ 22,550. The first cryptocurrency cannot yet significantly deviate from the $ 20,000 level (the high of the previous cycle). Optimists may be looking for a series of higher local lows over the past four weeks.

Ethereum posted substantial gains after ETH developers approved the blockchain migration to PoS for September 19, 2022. Ethereum surpassed its 200-week average at the end of last week, which could prompt early buyers to trade on technical signals.

And we also draw attention to the increased investor interest in blockchain networks, as evidenced by the outperformance of Ethereum, Solana, Polygon and Avalanche over the past week. At the same time, the NFT market continues to fade. It can be described as investors who bet on long-term projects instead of picking up short-term speculation.

Bloomberg calls attention to the weakening correlation between bitcoin and US equity indices, which has fallen to its lowest levels since January. If BTC’s reliance on the stock market weakens in the coming weeks, the community of experts will once again discuss bitcoin as “digital gold”.

According to CryptoCompare, the volume of cryptocurrency spot trading has fallen to its lowest level since June 2020. Fairlead Strategies believes that the bearish phase of the market could last for several months.

The UN has recommended developing countries to ban advertising on cryptocurrencies and require all cryptocurrency wallets and exchanges to register with regulatory authorities.

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