A comprehensive overview of the latest developments in the (crypto) markets. Concisely summarized in a market commentary by the CVJ.CH editorial team.
After reaching the new all-time high of around $58,000, a sharp correction (-25%) followed, taking the bitcoin price back to the $45,000 zone. In the last two weeks, it recovered quickly and we are back at the all-time high.
For the trend of higher highs and higher lows to continue, Bitcoin would now need to be able to prevail. A rejection from the all-time high could lead to a potential double top - a fundamentally bearish pattern. The next few days will show whether the bulls prevail.
The picture here is similar as well. Ether (ETH) corrected after the bull market to $2,000 at the same time as Bitcoin (BTC) almost -30%, which led the price back to the all-time high of 2017/18 (blue line). A rapid recovery can also be seen in ETH, which was halted before the high.
The move was certainly influenced by the signing of a $1.9 trillion bill by US President Joe Biden. The entire market reacted positively to the news, as it is possible that many of these funds will flow back into securities. The first US citizens could receive "stimulus checks" of $1,400 as early as this weekend.
This week looks very mixed. Basically, many altcoins consolidated, some managed to put down a decent performance, while others suffered slight losses. The winners of the week are: Binance Coin (BNB) +24.22%, Litecoin (LTC) +15.04% and Dogecoin (DOGE) +11.13%. Taking losses were: Cardano (ADA) -6.03% - a slight correction after a strong run, Stellar (XLM) -2.76% and Ripple (XRP) -1.51%.
Two things have been particularly noticeable in recent weeks. The stable-coin Tether (USDT) was knocked out of its third place by market cap for the first time in a very long time. This is taken over by BNB, the token of leading crypto exchange Binance. In addition, Uniswap (UNI) was the first DeFi coin to establish itself in the top 10. The decentralized exchange is currently the clear market leader in terms of volume and was able to replace the credit platform Aave (AAVE) as the top DeFi token.
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Investing in cryptocurrencies, is fundamentally associated with risk. The total loss of the invested capital cannot be excluded. Cryptocurrencies are very volatile and can therefore be exposed to extreme price fluctuations in a short period of time.