Following Friday’s support hold, cryptocurrency markets are currently trading sideways with little to no movement from Bitcoin, Ethereum, BNB, and other significant crypto assets. Due to Bitcoin’s link to the stock market and the fact that all international markets are closed today, we aren’t seeing any price movement today. For now, BTC is simply waiting for the next move.
Key Notes:
- As BTC falls below $20k and ETH holds above $1,300, cryptocurrency markets are losing their bullish steam.
- The biggest stories this week for the cryptocurrency markets included the Binance Bridge Hack and Kim K. receiving a fine from the SEC.
- The merging of Ethereum has some drawbacks and is increasing block control.
- Before a reversal next week, the price will probably decrease a little this weekend.
Bitcoin Market News Update
A modest bearish momentum over the weekend is to be anticipated, despite Bitcoin’s price dropping by about 1% and sliding below $20,000.
This week’s notable bearish news on the cryptocurrency market includes The SEC penalizing Kim Kardashian over $1.2 million for advocating cryptocurrency security and the $120 million Binance Smart Chain bridge attack forcing BSC to stop its chain and freeze the stolen assets to ensure recovery attempts.
With so many hacks, legal proceedings, and advancements in blockchain technology, a week in the bitcoin world is never boring. We’ve had our fair share of bad news this week, but the cryptocurrency market remained steady despite the bad news.
We can only pray for some good news to come our way next week so that the cryptocurrency markets can have a chance to gain momentum for a bull run.
Ethereum Market News Update
Since Bitcoin appears to be beating ETH this weekend, there are also no advancements from Ethereum. Even though Ethereum’s network merger significantly improved the network, there were certain downsides.
In particular, the SEC currently asserts that ETH is a security because the chain uses proof of stake, and more than half of the validators are located in the US. Additionally, the merge has exacerbated the problem of block censorship in ETH, giving validators and nodes additional capacity to actually censor transactions.
It’s debatable whether or not that’s a good thing, but crypto maximalists would tell you that blockchain is built on decentralization, which in their eyes, is a sacred notion that shouldn’t be in a gray area.
Additionally, it appears that cryptocurrency is largely ineffective as a hedge against inflation when compared to the dollar, as the majority of crypto assets have seen considerable value losses this year.
Several factors, including a stronger dollar, cryptocurrency’s high volatility, and the fact that most investors still view cryptocurrencies as digital gold, which only serves to maintain crypto’s peg to conventional stocks and assets, are cited in a Forbes report as reasons why cryptocurrencies aren’t serving as an effective inflation hedge.
ETH is still trading above $1,300, but because of the fast-decreasing trading volume, it may drop as low as $1,200 by Sunday before rising again the following week.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
Follow us on Twitter @thevrsoldier to stay updated with the latest Metaverse, NFT, A.I., Cybersecurity, Supercomputer, and Cryptocurrency news!
Image Source: ipheung/123RF // Image Effects by Colorcinch
