What’s been happening in the crypto world this week?
Less than the previous week! Markets were generally more stable, and opportunities were there for short term traders to make some gains in the later part of the week. Bitcoin started the week heading towards $19k, but actually leveled out comfortably above $21k. Ethereum flirted with the idea of falling below $1k, but today stands over 10% up on its week-on-week position. While markets are generally operating from a low base, they are up on last week by over 10% in many cases. Looking at Shiba and Polygon, for example, they are both up +40%, so there was a bit more opportunity around.
Why the sudden improvement?
Well, there was no bad news to begin with. The previous week was awash with less than positive economic news coming out of the United States, so markets probably benefited from having a week off. Traders got back to basics and were able to make a positive impact overall. There’s a huge amount of room for further improvement, however.
Can we expect to see a bull run soon?
Hold your horses on that one. The outlook across all markets — not just crypto — is still concerning in the long term. Crypto may yet prove to be an alternative to traditional stock investments, but if we’re to go by the latest bear market, traders are taking their money out of their less ‘solid’ investments and haven’t yet seen cryptocurrencies as the potential alternative that they could serve to be. This is a pretty strong indicator of overall market sentiment.
Okay — optimism curbed. Are we still firmly in a bear market then?
Absolutely. While some short term opportunities will always pop up from time to time, markets are on a downward trajectory and have been for some time. Many cryptocurrencies are at lower value points than they were at the end of 2020. There’s a flip side to this, of course, in that crypto is generally undervalued. It’s not necessarily about that though — it’s more about keeping an eye on the road ahead, and the noises that are coming out of very influential markets.
Did anything else happen that’s worth knowing about?
Of course! A week is a long time in crypto, and plenty can go on in that time. Binance got their hands on the GOAT Cristiano Ronaldo (opinions may differ, of course) to partner with them, and he will be arguably the highest-profile partnership that the industry has managed to secure to date. In less publicized news, the founder of the Cardano coin Charles Hoskinson addressed the United States Congress about the future of crypto and blockchain in real-world settings. His address received rounded praise, as he appeared to push for public-private collaboration on its implementation, which is a sensible and realistic point of view to have. Public appearances like this will do great things for the perception of the industry.
Anything to look out for this week?
Markets are generally on high alert, so don’t be surprised to see any sudden changes in either direction. Keep an eye on any pending announcements from the US Federal Reserve, as they have huge sway on the direction of the market. It’s been a long long time since nothing happened in crypto, so there will certainly be something to have looked out for by this time next week!
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