Bitcoin, Ethereum, Dogecoin Have a ‘Terrible’ Start To 2022 — Why This Analyst Thinks Short-Term Is Looking ‘Ugly’
The latest data on the value of cryptocurrencies.
Bitcoin has not changed in value due to a drop in the capitalization of the global market by 1.2% to $ 1.9 trillion. Over the past day, Apex has increased by 0.1 percent to $41,778.88. Over the week, BTC declined by 11.45 percent. Ethereum ETH increased by 1.4 percent to $3,149.96 per day. But in a week, this coin has lost 17.4 percent in value. Dogecoin DOGE fell 0.6 percent to $0.15. During the week, the value of this coin decreased by 13 percent. Shiba Inu (SHIB) rose by 1.35 percent to $0.000028 per day. During the week, the values of this currency decreased by 16.6 percent.
According to CoinMarketCap, the best players over the past day were Chainlink (LINK), UNUS SED LEO (LEO) and Internet Computer (ICP).
LINK jumped 7.8% to $27.89, LEO rose 7% to $3.84, and ICP rose 6.4% to $33.78 during this period.
Economist and trader Alex Kruger said on his Twitter account that the policy of the US Federal Reserve System during the easing due to the Coronavirus has lost relevance. About $ 120 billion a month has been allocated for it, Alex believes that costs need to be reduced by at least $ 50 billion. If the central bank cuts $80 billion, they will need an additional $120 Million to withdraw the necessary amount ($200 billion). All this can have a detrimental effect on cryptocurrencies. Cryptocurrencies benefit from a softer monetary policy, and they may suffer from a tougher one.
The “fear and Greed index” reached level 10 over the weekend, which is its lowest level since July 21 last year. According to the latest data, this index, ranging from 0 to 100, showed the level of “Extreme Fear” and was at level 23.
Edward Moya, senior market analyst at OANDA, believes that such a depressing start to the year for the cryptosphere is due to the growing interest in other products, in particular NFT. If the Bitcoin level is broken, it may affect Ether. In the long term, both leading currencies will grow, but at the moment the indicators are disappointing. According to the co-author of Ethereum, Buterin, the project was not fully finalized and because of this, mass use affected the situation with the value of coins.
According to Glassnode, the share of unused Bitcoin transactions (UTXO) in profit (7-day moving average) has fallen to a 17-month low of 83.9 percent. UTXO indicates the number of coins remaining after the transaction is completed; while higher percentages indicate the tops of the market, lower values may indicate the bottom.