Currently many crypto market watchers think that the bottom is for Bitcoin and Ethereum after a bad start in the new year. Bitcoin is up 6% from this time one week ago, and Ethereum is up 10% since then in about 2 weeks.
But as has happened in 2022 so far, altcoins have fared better.
In the recent past, it's been rare to see so many other projects soar while Bitcoin and Ethereum have remained stagnant. Now weeks like this have become the new norm.
As of the last seven days, traditional market leaders aren't the slowest movers, but they're definitely not moving as high as names like NEAR, Near Protocol's next-generation dapp platform token. NEAR exploded 43% in the past week to hit a fresh all-time high of $20.38 on Friday this week.
Bitcoin And Ethereum
Bitcoin (BTC) is up 6% from a week ago to $43,417. While it is still far from its previous ATH of $68,790, Bitcoin looks like it is on a steady recovery from its sharp decline earlier in the week. In the early hours of Monday morning, Bitcoin was trading around $42,178, then the price circled around and hit a low of $39,867.
Ethereum (ETH) also sank below the symbolic threshold of $3,000 last Monday. It is currently trading at $3,335, close to 11% higher than last week's time
On Monday, a new report from digital asset market data provider Kaiko concluded that the correlation between the prices of Bitcoin and the NASDAQ and S&P 500 is at its highest level since July 2020. Does that mean Bitcoin is more assimilated to the traditional financial markets it was designed to fight against? Not necessarily.
On the report Kaiko concluded that investors in Bitcoin and the stock market responded to the Fed's news last week that they were getting ready to raise interest rates for the transition to a post-pandemic economy. So Bitcoin investors and equity investors (which of course have some overlap) are monitoring the same bearish news. But no one can say for sure whether the current high correlation will last.
Cryptocurrencies are a hot topic in Washington this week. On Tuesday, Federal Reserve chairman Jay Powell, announced that the Fed will release its report on crypto digital currencies and central banks (CBDC) in the coming weeks.
It seems that many governments around the world, the Fed are very interested in researching the feasibility of implementing a CBDC in America, so the report will likely include a discussion of the possibilities of digital dollars and other crypto assets.
LUNA, DOGECOIN, MATIC, POLYGON
The LUNA Terra token forecast exploded 37% this week. It was trading at $86 at the time of writing. Terra has been climbing steadily for the past two months. It should be noted that at Christmas time, the total value locked in the Terra-based project exceeded $20 billion. Last week, as LUNA's prices took a hit, TVL dropped to around $15 billion, but higher prices meant higher value, bringing the TVL project on Terra back to around $19 billion, according to old DeFi.
And current Polygon holders are enjoying a 24% gain this week for MATIC, now worth $2.38 each.
In the end, Dogecoin exploded 27% this week. It's still only worth about 18 cents, well off the 74-cent high, the ATH meme coin made a comeback in May last year amid Elon Musk's persistent pumping and "SNL" hosting gigs.
last week, Dogecoin briefly passed 20 cents when Tesla stores began accepting it for merchandise payments.
Thus, after a rocky start to 2022, the crypto market is in the green. Will it stay like that? we talk in a week From now on.