In the wake of Terra’s devastating collapse, the cryptocurrency market is taking a shot at recovery. In the past seven days, the total capitalization is up to $1.350 trillion, gaining roughly around $70 billion. Most cryptocurrencies trade well in the green, so let’s unpack.
From Bitcoin, the cryptocurrency appears to range between $28,000 and $30,000. As of this writing, it is trading slightly above the latter on fragile volume where buyers appear undecided. Bulls made a more convincing attempt to push the price forward and even took it above $31,000. Unfortunately, their push was not good, as the sellers halted the advance and pushed BTC back towards $29,000.
The price action of Bitcoin and of most altcoins, for that matter, can be categorized as an unfavorable chop where a direction is yet to be convincingly determined.
Speaking of altcoins, most top trades will be in the green. Ethereum is up 3.8% in the past seven days and BNB has gained 16.4%, like Solana. The biggest weekly gainer appears to be Decentraland’s MANA, which is up 56%, followed by KuCoin’s native token – KCS (up 43%). At the other end of the spectrum we have LUNA and UST (unsurprisingly) – down 88% and 81%, respectively.
Elsewhere, Wall Street also saw a week full of tumultuous and unconvincing price action where major indices shed some value. The S&P 500 is down 2.55% since Monday, while the DJI is down 2.69%. Correlation between traditional markets and crypto remains at multi-month highs, which indicates that the relatively new industry continues to be completely unable to decouple.
It’s been a quieter week than the previous one, but it’s undoubtedly very exciting to see what the next seven days have in store for us.
Market Data
Market Cap: $1,341B | 24H Vol: $88B | BTC Dominance: 42.8%
BTC: $30,151 (+3.5%) | ETH: $2,029 (+3.2%) | ADA: $0.52 (+11.2%)
This week’s crypto stocks you can’t miss
First time in history: Bitcoin closes in red for 7 consecutive weeks. For the first time ever, the price of Bitcoin has closed seven consecutive weeks in the red. It also pushed the general market sentiment into extreme fear. In fact, the metric has fallen to a low we haven’t seen since the COVID crash in March 2020.
Global Watchdogs to Regulate Stablecoins Following TerraUSD (UST) Fiasco. The sudden collapse of the entire ecosystem of the Terra protocol wreaked havoc on the broader cryptocurrency market. This, in turn, caused global regulators to consider taking steps to regulate stablecoins.
The high correlation between Bitcoin and Ethereum with Wall Street continues. The decline in cryptocurrency over the past few weeks has not been an isolated event – in fact, it has followed the broader stock market. The data shows that the correlation between the two is currently at a multi-month high.
SEC Chair Predicts Other Cryptocurrencies Will Mimic Terra’s Downfall and Harm Investors. The Chairman of the United States Securities and Exchange Commission (SEC) – Gary Gensler – thinks that there might be more cryptocurrencies like LUNA that will collapse in the near future. This would, in turn, harm more investors the way many people were burned throughout the Terra fiasco.
FTX US launches stock trading for select users. One of the leading cryptocurrency exchanges – FTX – has revealed its latest expansion intentions. The company aims to allow users to trade stocks outside of cryptocurrencies, and they have already launched the service, which is only available to certain traders.
Bitcoin is the Internet’s Only Money, Jack Dorsey Says. The former CEO of Twitter and current chief of financial services company – Block – Jack Dorsey, said that Bitcoin is the only money for the internet. The tech mogul and multi-billionaire has long been a BTC bull, and his latest comments further cement his position.
