As the bear market continues, the volatility of cryptocurrency markets is beginning to decline. This week, Bitcoin and Ethereum have been trading in a constrained range as they appear to have found their support levels. Let’s review the news that affected the values of Bitcoin and Ethereum this week in the crypto market.
Weekly Review
This week’s top news for the cryptocurrency markets includes the following:
- Mastercard is developing a program to allow financial institutions to provide cryptocurrency trading services.
- For abusing a price bug on their site, Coinbase threatened to sue about a thousand users.
- Over $740 million in Bitcoin just left exchanges, according to a report, showing an optimistic sign that traders may be planning to retain BTC for a while.
- Shanghai, the following Ethereum network upgrade, has already launched a testnet and is anticipated to go live in 2023.
- Data show that the UK’s inflation is at a 40-year high, indicating that the global economy isn’t doing very well.
- Ethereum developers disagree with the discussion of blockchain censorship, which might lead to a fork.
- Because the SEC rejected its request to convert the Grayscale Bitcoin Trust into a spot Bitcoin ETF, Grayscale is suing the agency.
- Elon Musk discusses the state of the economy and predicts that the bear market may continue until the spring of 24.
- Following the network merge, Ethereum’s tokenomics are now deflationary; over the coming months, we’ll probably start to notice the result of this.
General Market Thoughts
Although there has been a lot of activity and news in the markets this week, it is remarkable that the total value of all crypto assets has mostly not changed.
Ethereum maintains a price above $1,300, while Bitcoin sells at $19k. Although today’s trading activity is substantially lower than usual, that is to be expected as markets will likely drop even further on Saturday.
The good news is that the lack of volatility encourages new investors to open long-term investments since they feel more confident doing so. After all, a market that is trading sideways rather than down is always preferable because it denotes the beginning of a trend reversal.
BTC’s market dominance is at 39.9%, while Ethereum’s is at 17.4%. Although ETH has historically outperformed BTC, it now appears that the two digital currencies are moving in lockstep.
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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