Market participants seem willing to take the risk to start a new quarter. Bitcoin traded sideways most of the week as investors returned to more cautious macroeconomics.
Although Bitcoin successfully traded above $20,000, it struggled to move above it. However, its market dominance increased to 41 percent from 39 percent on September 10, 2022.
This indicates that market participants are choosing Bitcoin over other assets due to its relatively stable nature, and the accumulation of whales and the rise of the US dollar index to a 20-year high are some of the reasons for BTC’s growth in the past few days.
The second largest cryptocurrency, Ethereum, was trading above the $1,300 level. Ethereum faced the heat of the macroeconomic factors after the merger. If Ethereum can close out the week trading above the $1,400 level, we may see an upward trend in the coming week.
On Friday, bitcoin fell below the $20,000 level as markets prepare for the release of the latest US non-farm payroll report. Bitcoin tumbled as the bearish trend returned to the markets. Ethereum continued to consolidate prior to the release.
While other major cryptocurrencies were mixed, some were trading in green and some in red. Volatility in the cryptocurrency market has increased in recent weeks as market participants reacted to rising inflation and volatility in the US dollar by staying away from riskier assets.
In an interesting turn of events, Fidelity Investments has been the flag-bearer of Ethereum investment among institutional players. The leading asset management firm has raised $5 million and is open exclusively to qualified investors.
The European Union will soon pass its historic crypto law after two strict two years. According to the head of the Committee on Economic and Monetary Affairs, the legislation should be passed in its first reading in Parliament. This step will open a new avenue for innovation.
McDonald’s began accepting Bitcoin and Tether in Lugano, Switzerland. The news comes as the crypto community has been rallying for years for the restaurant company to accept cryptocurrencies like Dogecoin on all sites.
In terms of price action, among the top 100 cryptocurrencies by market cap, here are the best and worst performing cryptocurrencies over the past week:
This week’s top 5 gainers (as of 10.00 IST on Oct 9, 2022):
1. Casper (CSPR): 19% higher
2. Maker (MKR): 18% higher
3. Convex Financing (CVX): 15% higher
4. Ethereum Name Service (ENS): 14% higher
5. Elrond (EGLD): 13% increase
The 5 biggest losers in cryptocurrency this week (as of 10.00 IST on Oct 9, 2022):
1. Reserve Rights (RSH): 17% down
2. Terra Classic (LUNC): Decreased by 13%
3. Chili’s (CHZ): 12% down
4. Algorand (ALGO): 10% down
5. Helium (HNT): 9% down
Note: The study includes only the top 100 cryptocurrencies by market capitalization included in the data source i.e. Coinmarketcap.
(Author Edul Patel is CEO and Co-Founder of Mudrex)
(Disclaimer: Recommendations, suggestions, opinions and opinions provided by experts are their own. These do not represent the views of the Economic Times)
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