FXTM information and reviews
OctaFX information and reviews
XM information and reviews
FXCC information and reviews
Libertex information and reviews
FxPro information and reviews

The Crypto market won't rush to growth

3 August 2022 Written by Alex Kuptsikevich  FxPro Senior Market Analyst Alex Kuptsikevich

Bitcoin continues its soft landing towards the lower end of the upward corridor, losing around 0.5% over Tuesday and retreating to $23K. Ethereum has strengthened by 2.7% to $1630 in the past 24 hours. Leading altcoins moved from down 3.8% (Solana) to up 2.6% (BNB). Total cryptocurrency market capitalisation, according to CoinMarketCap, rose 1.1% to $1.06 trillion overnight. The Cryptocurrency Fear and Greed Index added 3 points to 34.

Cryptocurrencies await further signals from policymakers or the macro economy, with a total capitalisation hovering around $1 trillion. The market managed to stay above the 2018 highs. The market has moved out of the extreme lows and removed oversold conditions.

However, we conclude from previous crypto market cycles that even if the bottom is passed, there could be a prolonged lull and a very uneven recovery ahead. A powerful year-long surge, as it has been since early 2017 and October 2020, follows only after a long lull.

The Crypto market won't rush to growth

Due to falling real incomes (wages are growing slower than inflation) in much of the global economy, people will be less inclined to be quite adventurous to seed investments in cryptocurrencies. This means that the industry is now entering a stress testing period in which only the most viable projects will survive. For crypto enthusiasts, the most prudent approach may be to focus on the most global projects, such as BTC, ETH, and products that have become businesses, not just industry hype. 

Stablecoin USDT's capitalisation has risen for the first time in three months, indicating consolidation and further growth in cryptocurrencies. However, it could also prove to be a sign of an increasing number of people's interest in transactions bypassing the traditional banking system due to both the sanctions against Russian banks and the declining confidence in traditional finance in less developed parts of the world.

Meanwhile, Glassnode questioned the continuation of bitcoin's recovery rally, citing that on-chain indicator data has not improved fundamentally in recent days. Online activity remains subdued, suggesting little new demand is coming in. According to the Morgan Creek CEO, bitcoin will not enter a new growth phase until 2024, when the halving will take place. However, the cryptocurrency's current price is too low; a fair price for BTC should be around $30K.



The Ethereum Merge is Complete: the Details and the Implication for the Cryptocurrency Market and the Blockchain Industry
The Ethereum Merge is Complete: the Details and the Implication for the Cryptocurrency Market and the Blockchain Industry

Big news from the world of crypto. A successful upgrade of major scale has been carried out on the Ethereum network, which could prove to be a pivotal point for the entire industry. Anyone who’s even remotely familiar...

1 Oct 2022

BTC did try to grow and even reached $20,381
BTC did try to grow and even reached $20,381

Yesterday, the BTC did try to grow and even reached $20,381, but couldn’t keep the momentum and dropped to $18,759. The key market driver for cryptos is the correlation with the American stock market...

28 Sep 2022

Has the crypto market first felt the risk appetite?
Has the crypto market first felt the risk appetite?

Bitcoin rose 1.1% on Monday, and on Tuesday morning, it "shot up" another 5.5%, adding 7.5% over the past 24 hours. This growth momentum has brought the price of the first cryptocurrency...

27 Sep 2022

Crypto as a safe haven. Finally?
Crypto as a safe haven. Finally?

Bitcoin is down 4.1% over the past week, ending near $18,900. Ethereum lost 5.8% to $1290. Other leading altcoins in the top 10 showed mixed dynamics, ranging from a 3.7% decline...

26 Sep 2022

The flight of XRP and the crypto market uptick
The flight of XRP and the crypto market uptick

Bitcoin has gained 3.8% in the last 24 hours to $19.4K. Quotes have stabilised near the lower bound of the three-month range. Ethereum gained temporary support after falling below $1300...

23 Sep 2022

The crypto market has chosen the downward path
The crypto market has chosen the downward path

Bitcoin is losing 2% over the past 24 hours, hovering near $18.7K at the time of writing. Attempts at intraday gains have been shattered by the adverse market reaction...

22 Sep 2022

HFM information and reviews
IronFX information and reviews
FXCM information and reviews
NordFX information and reviews
Vantage information and reviews
FP Markets information and reviews
FP Markets

© 2006-2022 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.