The crypto market turns green and reaches a one-month high market cap
After the turbulence of the first half of 2022, the cryptocurrency market is trying to maintain the recent short-term gains recorded in July.
In particular, the sector is witnessing capital inflows that have reached a new monthly high led by high-market cap cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH).
As of Aug. 8, the global crypto market capitalization rose to a one-month high of $1.13 trillion, adding about $18 billion from $0.95 trillion recorded on July 8, according to CoinMarketCap data.
Bitcoin and Ethereum lead the crypto market in gains
In general, major cryptocurrencies turned green after appearing to falter in early August. For example, at press time, flagship cryptocurrency Bitcoin was again trading just above $24,000 after gaining nearly 3% in seven days.
Furthermore, second-ranked Ethereum is also on a bullish streak as the community prepares for the Merge upgrade that will transition the blockchain to a Proof-of-Stake (PoS) protocol. At press time, the asset was valued at $1,743, up over 3% in a week.
Bitcoin maintains its price above $23,000
Bitcoin appears to have support above $23,000 after the position appeared threatened with the risk of correcting below $20,000.
It is worth mentioning that Bitcoin fell below $23,000 early Friday before the report from the US Department of Labor. The figures indicated that the US recorded growth in new jobs, dismissing fears that the economy was slowing further.
A prolonged downturn would have triggered the Federal Reserve to implement a sharp increase in interest rates that could throw the economy into a recession. The more than 500,000 new jobs highlighted the economy’s resilience despite soaring inflation.
Despite the ongoing tough economic times, the market has also seen a resurgence in the number of institutions taking a stake in the crypto sector. For example, asset manager Brevan Howard completed largest crypto hedge fund launch involving over $1 billion in funds under management.
Elsewhere, BlackRock (NYSE: BLK ) partnered with crypto exchange Coinbase to facilitate institutional cryptocurrency investment.
Market is less affected by Solana wallet hack
Overall, the past week has been a mix of good and bad news for the cryptocurrency market. For example, the market has seen capital inflows despite the high-profile hack of the Solana (SOL) network wallet, which resulted in a loss of over $4 million.
However, the crypto industry received some relief after preliminary evidence indicated that the hack may not have been Solana’s fault. The root cause of the exploit was identified as compromised private keys.
Disclaimer: The content of this page should not be considered investment advice. Investment is speculative. When you invest, your capital is at risk.
