The Sideways Trend in the Crypto Market Continues
Over the past week, the crypto market has remained relatively stable, with Bitcoin (BTC) starting at $26,000 and briefly reaching above $27,000. However, it faced resistance at around $27,500 and subsequently declined. Currently, BTC is trading at approximately $26,600. If the decline continues, it may retest the support zone at $25,400. Despite a 60% decrease from its all-time high, BTC has gained 2.34% this month and an impressive 60% this year.
Influence of Federal Reserve Meeting and Rising Bond Yields
This week, the U.S. Federal Reserve held a meeting to discuss interest rate hikes. Fed Chair Jerome Powell mentioned that additional rate hikes would be considered if the economy continues to outperform expectations. The benchmark interest rate remains between 5.25% and 5.50%. Meanwhile, market participants are reacting to the U.S. benchmark 10-year note yields reaching 4.490%, the highest level since November 2007. These events have caused some bearish sentiments in the markets.
Ethereum’s Movement and Traditional Financial Institutions’ Involvement
Ethereum (ETH) has followed a similar pattern to BTC. It faced bearish momentum below $1,600 and needs to break above the $1,620 resistance level to reach $1,650. Failure to clear immediate support may result in a decline towards $1,565. In other news, Deutsche Bank announced a partnership with Swiss startup Taurus to establish digital asset custody and tokenization services, highlighting traditional financial institutions’ increasing involvement in the crypto space.
Integration of Crypto Market with Traditional Finance
Nomura, a prominent Japanese investment bank, has introduced a Bitcoin-based fund catering to institutional investors. Additionally, Grayscale, a significant player in the crypto investment space, has submitted an application to the U.S. SEC for a new Ethereum Futures ETF. These developments demonstrate the continued evolution of the crypto market and its integration with traditional finance.
Hot Take: Best and Worst Performers in the Crypto Market
Here are the best and worst-performing cryptocurrencies among the top 100 by market cap over the past week:
Top 5 gainers:
- Immutable: +32%
- Toncoin: +20%
- Aave: +16%
- GMX: +11%
- Terra Classic: +8%
Top 5 losers:
- IOTA: -10%
- Gala: -9%
- Klaytm: -8%
- Axie Infinity: -6%
- Rocket Pool: -6%
(The author is CEO and Co-founder of Mudrex, a Global Crypto Investment Platform)
Closing Thoughts
The crypto market has experienced a sideways trend this week, influenced by various factors such as interest rate discussions and rising bond yields. Bitcoin and Ethereum have both faced resistance levels and bearish momentum. However, traditional financial institutions continue to show their involvement in the crypto space through partnerships and new investment products. Despite recent declines, BTC has shown significant gains year-to-date. As the market evolves, it remains important to monitor the performance of different cryptocurrencies and their potential for growth.
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