BTC is trading at over $30,000/= after a bear run streak that started a week ago after the Federal Reserve increased the lending rate by 0.5 basis points. This triggered a capital flight from the stock market. The consequential shocks to the financial system led to the Crypto bear cycle, which led to a market capitalization plunge to almost $1 trillion from a high of $1.9 trillion days ago.
The bears have, however, cooled off as BTC is now trading at $30,588.62 as of 6: 08 GMT. The Bitcoin market capitalization is now at $584,397,693,966, and its dominance has risen to 44% after some altcoins saw a deep plunge, with some losing 50% of their token value over the last seven days.
Investor Confidence in BTC is High
On most Crypto exchange platforms such as Binance, BitFinex, KuCoin, Kraken, and more, investors have high confidence in BTC pairs against Crypto and Fiat Currencies. The positive sentiments will give the market an upward momentum, which determines a rally.
Some BTC pairs that have increased trading activity include BTC/USDT, BTC/USD, and BTC/BUSD, with trading volume up by about a range of 2% to 8%. ETH/BTC and XRP/BTC pairs are also in the green, indicating that the negative sentiments that triggered the selloffs are waning.
7 Day Analysis Shows That the Market Is Still in The Red
Although the last 24 hours have seen a rebound in Crypto prices, the 7-day analysis paint a different scenario. BTC has shed off 16% of its value in the last seven days from $36,409 on the 6th. However, the intraday range of $26,350.49 to $30,921.27 shows that the BTC price is still volatile, having tested a new low. However, the fact that the daily trading volume is up by 22% shows that sell and buy orders are in equilibrium and that a rally could be in the offing.
The Crypto market, in general, is still in the red, with most Cryptos showing a sharp decline in their values in the last seven days. For instance, ETH is down 23%, BNB has slid 20%, ADA has shed off 25%, SOL lost 37%, and the trend is replicated for most other Cryptos. Stablecoins such as USDC, USDT, and BUSB are relatively stable with marginal changes in the period under review.
Will the Current Rally Be Sustained?
It is hard to tell how the Crypto market will trend in the short term as the Fear and Greed index still shows a value of 10, representing fear. However, with BTC making positive headlines, such as the Finland donation to Ukraine, ten major Crypto is set to become more stable. Its dominance will influence the Altcoins and attract more risk-averse adopters, making Crypto a true currency in the foreseeable future.
Sam Mitchell is a Freelance Writer & Fitness Instructor from South Africa, living in Australia. She comes to the team with extensive writing and Social Media experience, covering a wide variety of genres from blog posts, book reviews, Whitepapers, blogs and guides to news pieces…and more. Sam has been Freelancing for over 17 years, working with many different clients. You can get in touch with Sam at www.stmwritingsolutions.com