This week’s sideways trading pattern continues on Friday, with Bitcoin and Ethereum values remaining relatively unchanged. Surprisingly, trade activity for Bitcoin and Ethereum is up significantly this Friday, indicating a strong market. Let’s take a look at the important news affecting prices this week.
Key Notes:
- Prices for Bitcoin and Ethereum are still holding steady.
- Since its volatility has decreased, Bitcoin has become more stable than the NASDAQ and S&P 500.
- Elon Musk discusses the state of the economy and predicts that the bear market may continue until the spring of 24.
- An indication that support will likely continue until next week is the rise in trade volume, which is optimistic for the weekend.
- Following the network merge, Ethereum’s tokenomics are now deflationary; over the coming months, we’ll probably start to notice its impacts.
General Market News
The main story from yesterday is that the CEO of Grayscale is suing the SEC for preventing the conversion of the Grayscale Bitcoin Trust into a Spot ETF. To influence the court’s decision in Grayscale’s favor, we saw business leaders unite and submit an amicus brief in support of the company.
In other developments, a CNBC report notes that Bitcoin’s volatility fell below that of the NASDAQ and S&P 500 for the first time since 2020.
Given that crypto markets continue to be the wild west of international finance, who would have believed that Bitcoin could technically trade in a narrower range than regular stocks.
Elon Musk expressed his views on the world economy on Twitter. “How long you think the recession will last?” was a tweet made by Tesla Owners Silicon Valley, and Elon responded, “Just guessing, but probably until spring of ’24.”
Just guessing, but probably until spring of ‘24
— Elon Musk (@elonmusk) October 21, 2022
In the sense that we should anticipate 2023 to be another dismal year throughout, the guess is fairly extreme. Even if most people don’t want to think that the market will remain bearish for at least another year, that might be the unpleasant truth that lies ahead.
Ethereum News Update
The evolving tokenomics of the crypto asset were among this week’s most significant news stories about Ethereum. Eth is becoming deflationary due to the network merging, where more Ether is being burned than created.
This suggests that as the economy changes and supply declines, there will be more support for ETH prices in the coming months.
Today’s crypto fear and greed index is 23 points, roughly unchanged from one month ago. The market is still in extreme fear, but if Bitcoin and Ethereum maintain their support levels, things may start to level off in the upcoming months.
With a loss of 0.53% over the previous 24 hours, the current global crypto market cap is $916 billion. Ethereum is currently worth $1,297, while Bitcoin is trading at $19.132. The good news is that the market activity is robust, and the trading volume for BTCUSD and ETHUSD is up over 30%, indicating that support will likely persist through the weekend.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
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