The cryptocurrency market rallied positively over the past 24 hours, giving a boost to the overall cap trading above the $1 trillion mark after an extended dry spell. All of the popular crypto tokens like Bitcoin and Ethereum have been in the green, surging as much as 8 percent over the past 24 hours. Total cryptocurrency trading volume in the last 24 hours was $81.3 billion. Experts believe this rally will not last, but the trend will gradually recover over the next months. That means investors can breathe easy, at least for now.
Traders are cheering after the BTC price surged 7% to $21,800, but analysts say the macro downtrend is likely to continue for the foreseeable future. The green day in markets comes on a backdrop of rising jobless claims in the US, which according to Jamie Cox, managing partner at Harris Financial Group, is a possible sign that “pressure on wages may have peaked”. According to market analysts, a continuation of this trend could result in financial conditions “strained enough to allow the Federal Reserve to scale back rate hikes”. In a recent report, analysis reveals that activity on the Bitcoin network shows that “all speculative companies and market tourists have been completely removed from the asset.” That means it’s largely the long-term investors who are sticking with Bitcoin.
Ether losses threat in detail, investors have locked just over 13 million ETH in the Ethereum 2.0 Smart Contract since it went live in December 2020. ETH to become more pronounced on unfavourable technical and macro indicators. In particular, the weekly average of 32 ETH deposits in Ethereum 2.0 has fallen to 122 per day, compared to 500 to 1,000 per day in 2021. This indicates investors’ reluctance to lock in their ETH holdings amid a bear market. Meanwhile, macro risks remain the main threat to ETH price; namely, the potential 75 basis point rate hike by the Federal Reserve in July. Ethereum has now completed its penultimate merger test on the Sepolia public testnet, paving the way for the transition to the Proof-of-Stake (PoS) consensus mechanism. While largely considered a success, it was not without incident. The final test of the fusion is scheduled to take place on the Goerli network in the next few weeks before the official fusion can be released on the Ethereum mainnet.
On the macroeconomic front, The U.S. Treasury Department has provided President Joe Biden with a framework for crypto to allow U.S. government agencies to collaborate with their overseas counterparts. According to the Treasury Department, the framework was intended to encourage the development of digital assets while respecting the core democratic principle of the United States – ” Values” and ensure the stability and security of the global financial system and the international monetary system. The Indian crypto market is currently under enormous pressure. As the global macro situation continues to plague cryptocurrency trading in India, the government’s recently introduced one percent TDS rule has caused an adverse surge. Since every crypto transaction is now taxable, traders are not so inclined. This has led to a decrease in the average trading volume. But experts assume that the dominant market pause will end soon.
BITCOIN made a couple of Doji candles around $19,000 early this week and started moving up and made the weekly high of $22,527 but with low volumes. Currently, the asset is trading at its resistance zone ($22,000 to $23,000). If the bulls manage to push the prices above $23,000 then we can expect the prices to further surge up to $28,500 whereas if it resists here then it may continue to trade in a range and can drop to $19,000. On a broader time scale, BTC is still trading sideways in a range from $23,000 to $18,000. Breakouts on either side will further decide the trend for the asset.
ETH after taking support around the psychological level of $1,000 has started to rise by forming a ‘Higher High Higher Low’ pattern but with low volumes. The asset can face stiff resistance at $1,275. Once it gives a daily closing and sustains above the resistance then we can expect the prices to surge $1,600 levels. If it resists here then we can expect some correction or profit booking. $1,000 and $860 will act as a strong support for the asset.
Matic has made a small ‘Cup and Handle’ pattern with the neckline of $0.65. Once the breakout occurs above the neckline with good volumes then we can expect the prices to surge up to $0.8 – $1. The pattern fails if the asset breaks the support of $0.40.
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- Embattled lending platform Celsius has transferred nearly 25,000 Wrapped Bitcoin (wBTC), worth $528.9 million to crypto exchange FTX.
- Content aggregation, ranking, and discussion website Reddit announced a new blockchain-backed avatar system on Thursday. Though no official date was revealed, the company suggested that the avatars will be available to the general public in the next few weeks.
- The Moscow Exchange (MOEX) is the best match for hosting a regulated crypto exchange in Russia, according to Anatoly Aksakov, head of the Russian Banking Association and a financial committee within the State Duma.
- Solana Labs is the latest crypto company to be hit with a lawsuit accusing it of promoting an unregistered security.
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