Crypto Wrapped: July 4th-10th
Crypto charts finally headed upwards across the first full week of July. While one swallow doesn’t make a spring, it’s a welcome change to the doom and gloom that has been felt over recent weeks. While caution should of course be heeded — especially on the back of the start of this week — July 4th-10th was a better period for the industry when viewed in isolation. The market, however, is still bearish.
Some positive news, finally!
Well, it looked that way last week didn’t it. Bitcoin was up approximately 7% across the week, and had moved towards mid-$21k at some points, before settling back down in the mid-$20k region. Ethereum had stabilized close to $1.2k, up 9% on its week on week position, and Avalanche & Polygon were up by double figures too.
A note, however. We have seen over the course of yesterday that markets are back in a tailspin, so just hold that positivity for now. Almost every position that was looking good last week isn’t looking so good right now.
Let’s take last week in isolation — what was behind this good week?
A lack of news, I’d say! Markets traded steadily overall, albeit from lower bases than they have been over previous weeks. That wasn’t to last though, as yesterday was a heavy news day — and most of it wasn’t in the market’s favor. Developments across the stock market have had a ripple effect through crypto, and it appears that crypto and stocks catch a cold together these days.
Is there any news coming from the industry?
The latest inflation data is expected out of the United States on Wednesday, and it’s not filling the market with confidence. Figures are expected to be just as bleak as those published most recently, so hold onto your hats.
There are also concerns being demonstrated in the stock market about China’s COVID figures, which appear to be increasing again.
The UK is in the midst of a leadership battle too, with Prime Minister Boris Johnson resigning from his position last week. These events may seem a million miles from crypto on the surface, but they have global consequences.
You mentioned stocks before — how are they doing?
They had a steady week last week, but they’ve opened up poorly this week — down over 10%. As mentioned, there’s a lot going on on the global stage, from a business, political and economic perspective. With both stock and crypto markets intertwined as much as they are at the moment, what impacts one market ripples straight through the other.
Where does crypto go from here?
Well, there’s another storm to contend with now, so all focus will turn towards this. This week will be a case of the short term traders looking to take advantage of the volatility of the markets they trade in, and HODLers holding their nerve. Sentiment is still bearish…this will be an important week.