Blockchain projects are pulling up the crypto market
Bitcoin formally closed last week lower, ending at close to $ 21,100. At the time of writing, the upside momentum has built up, taking the price to 21,800, the upper part of last month’s consolidation area.
Ethereum jumped 14.1% last week, adding another 6.7% since the start of the day on Monday, rising to $ 1430. When ETH found itself one step ahead of BTC this time, ETH broke the upper limit for last month’s trading area on Friday. The steady increase in the second cryptocurrency underlines the increased demand for risk among crypto enthusiasts.
Leading altcoins have increased in the last 24 hours, from 1.8% (Dogecoin) to 16% (Polygon).
The total capitalization of the crypto market, according to CoinMarketCap, rose 9.5% during the week to $ 998 billion. Bitcoin’s dominance index fell by 1.1 percentage points to 41.7% in the same period.
The Crypto Fear-and-Greed Index was unchanged for the week, returning after falling to 24 points (extreme fear). On Monday, the index was down to 20, but recent market dynamics suggest that the market is set to leave the territory with “extreme fear”.
Bitcoin picked up again in the second half of the week from all the early declines. BTC has consolidated below its 200-week moving average for almost a month, and is now running around $ 22,550. The first cryptocurrency is not yet able to move significantly away from the $ 20,000 level (the highest in the previous cycle). Optimists can look for a sequence with higher local lows in the last four weeks.
Ethereum showed remarkable gains after ETH developers approved the blockchain migration to PoS for September 19, 2022. Ethereum broke above its 200-week average late last week, which may encourage early buyers to trade on technical signals.
And we also draw attention to increased investor interest in blockchain networks, as seen in the overperformance of Ethereum, Solana, Polygon and Avalanche last week. At the same time, the NFT market continues to fade. This can be described as investors focusing on long-term projects instead of gathering short-term speculation.
Bloomberg highlights the weakened correlation between bitcoin and US stock indices, which has fallen to its lowest levels since January. If BTC’s dependence on the stock market weakens in the coming weeks, the expert community will discuss bitcoin as “digital gold” again.
According to CryptoCompare, the spot trading volume for cryptocurrencies fell to its lowest level since June 2020. Fairlead Strategies estimates that the bearish phase of the market may drag on for several months.
The UN has recommended that developing countries ban advertising for cryptocurrencies and require all cryptocurrency wallets and exchanges to register with regulators.
