The complete overview of the day's events on the (crypto) markets. Compactly summarized in the market commentary of the CVJ.CH editorial team.
Market Commentary
Bitcoin (BTC) is still in the consolidation zone between USD 37'000 and USD 45'000. After the breakout attempt of the week before last failed, the price quickly moved to the lower part of the range. Crypto markets remain very closely correlated with equity indices and this recent downward move was accompanied by a sharp correction in traditional assets (S&P 500: -5.3% in 2 days).
The volumes of the crypto markets remain exceptionally low. Many market participants seem to be waiting for a movement of the traditional markets; there has been no initiative since the high at USD 69'000. A break of the support zone around USD 37'000 will likely see a rapid move towards the 30'000 level. The macro range between 30'000 USD and 64'000 USD defines the price action since the end of 2020. Thus, the lower zone represents a seminal support.
Ethereum shows relative strength
Ether (ETH) is also in a long-term range between USD 1'800 and USD 4'000. Similar to Bitcoin, Ether formed a consolidation zone after last year's gradual sell-off wave. This is between USD 2'500 and USD 3'200 and a breakout would likely push the price to the limit of the macro range.
Currently, Ether is moving in line with Bitcoin, with a long-term uptrend evident in the Ether vs. Bitcoin (ETH/BTC) trading pair. However, without a catalyst, which could come in the form of positive news on the Ethereum merge, Ether is unlikely to decouple from the rest of the market.
STEPN (GMT) continues its run
The only coin in the top 100 that has managed to deliver a consistent positive performance for over a month is the GMT governance token of the curious "STEPN" project. The protocol's motto is "Step and Earn" as a derivative of the "Play to Earn" movement in the crypto gaming sector. Instead of tokenizing video games, STEPN users are rewarded for their number of steps in real life.
For many, the project came out of nowhere and went on an inexplicable run. With a Fully Diluted Valuation (FDV) of around $20 billion, STEPN would enter the top 10 cryptocurrencies by market cap after issuing all tokens (10x the current circulating supply).
Disclaimer
All information in this publication is provided for general information purposes only. The information provided in this publication does not constitute investment advice and is not intended as such. This publication does not constitute and is not intended as an offer, recommendation or solicitation to invest in any financial instrument, including cryptocurrencies and the like. The contents contained in the publication represent the personal opinions of the respective authors and are not suitable or intended as a basis for decision-making.
Risk notice
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.
