Crypto Market Review, September 23
The cryptocurrency market remains in the red while Cardano shows outstanding performance
Despite the mild uptick we saw in the cryptocurrency market just a day ago, most digital assets remain in the red. Bitcoin has lost 14% of its value in a week of trading, which, however, is not a number that experienced crypto traders are afraid of.
Cardano gains traction against Bitcoin
The price performance of one of the most notable assets on the market against Bitcoin has been more than successful in recent weeks and even months. The main reason behind it is the upcoming Vasil hard fork and the questionable future of Ethereum which turned off the PoW mechanism for good.
From a technical standpoint, Cardano is also showing outstanding price performance, gaining over 8% to its value over the past seven days. At press time, it breaks the upper boundary of the ascending triangle for the third time this month.
The breakthrough is an important step towards the trend reversal at ADA. The cryptocurrency lost over 60% of its value since the ATH and hasn’t had a chance to recover, especially with the market conditions we’ve experienced over the past few months.
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Cardano is also showing that it is not only rallying against Bitcoin, but is also showing a better than average performance against the US Dollar despite strengthening against a bracket of foreign currencies.
Regulators create toxic environment around Ether
Another important factor is the regular lack of clarity around Ethereum, which became extremely similar to a security, which is why regulations can affect investors and cause many problems for projects willing to start working on the network.
If new regulatory guidelines are released for Ethereum, the asset’s value could start to drop rapidly, especially due to the lack of network adoption we are seeing now, considering the poor performance of the DeFi and NFT industries.
Unless building on the network becomes popular again, both the profitability and revenue of Ethereum remain at an extremely low level, which is why selling pressure on it increased exponentially in recent days despite the Merge update.
Bitcoin awaits monetary policy easing
Despite the relief in the cryptocurrency market, Bitcoin is still moving through correction cycles after another interest rate hike started at the September 21st FOMC meeting.
Unfortunately, the uncontrollable inflation shows us that the regulator is still going to increase the policy rate in the country despite the critical conditions of the stock market, which, as we know, dictates the movement of digital assets.
At press time, Bitcoin is changing hands at $18,900 and is still hovering around the lows of the year. Another breakdown would send the first cryptocurrency to the next support level at about $16,000.
