Cryptocurrency markets are again in the red, with the trading volume decreasing this Saturday significantly. After little change on Friday for Bitcoin and Ethereum, prices are down today as the market is taking a break. Bitcoin is trading at the low $19,000s while Ethereum is still below the $1,300 support range.
Crypto Market Update
The 24- hour trading volume for BTCUSD is down 54%, while ETHUSD is down 49% in the past 24 hours. A decrease in trading volume is expected during the weekend.
To recap this week, some notable news this week includes:
- Reports that North Korea is quietly amassing millions in cryptocurrency via unsavory methods like hacking and exploitation of smart contracts
- The stock market is underperforming due to the Fed’s aggressive monetary policy.
- SEC started a probe into Yuga Labs, ApeCoin, and their NFTs.
- Google Cloud began to accept Bitcoin, Ethereum, and Dogecoin via Coinbase.
- Ethereum’s network is becoming deflationary after the merge as more Ether is burned via transaction validation than is minted via staking.
- A new protocol aims to incentivize the sustainable mining of Bitcoin by offering SBCs (Sustainable Bitcoin Certificates) to interested investors looking to meet their sustainability quota.
Regarding the economics of the cryptocurrency markets, the global crypto valuation remains in the $900 billion range. As long as it’s below $1 trillion, we can safely assume that the short-term sentiment for the market is bearish.
Today’s fear and greed index is at 24 points, not as bad as the 20 points earlier in the week but lower than last month’s 28 points. The market remains in extreme fear, the same level it’s been in for the past several months.
One positive news despite the bear market is the decreased volatility for Bitcoin and Ethereum, which might be a sign that the market bottom is near. While it’s improbable that we will see a trend reversal this year, next year is another story.
If you’re still brave enough to buy the dip and have cash on the side, now isn’t a terrible idea to dollar-cost average long-term position to prepare for insane gains when the bull market hits. However, at the same time, it could take until Q2 or Q3 of 2023 before we really see another bull run, so prepare to be patient.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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