Bitcoin continues its soft landing towards the lower end of the upward corridor, losing around 0.5% since Tuesday and returning to $ 23,000. Ethereum strengthened 2.7% to $ 1630 in the past 24 hours. Major altcoins fell from 3.8% (Solana) to 2.6% (BNB).
The total market capitalization of the cryptocurrency, according to CoinMarketCap, increased 1.1% to $ 1.06 trillion overnight. The Cryptocurrency Fear and Greed Index added 3 points to 34.
Cryptocurrencies are awaiting new signals from politicians or the macro economy, with a total capitalization hovering around $ 1 trillion. The market managed to stay above the 2018 highs. The market came out of the extreme lows and removed the oversold conditions.
However, from previous cryptocurrency market cycles we conclude that even if the low is broken, there may be a prolonged pause and a very erratic recovery in sight. A powerful one-year wave, as has been the case since early 2017 and October 2020, only follows after a long hiatus.
Due to falling real incomes (wages growing slower than inflation) across much of the global economy, people will be less inclined to be adventurous enough to start investing in cryptocurrency. This indicates that the industry is entering a stress test period in which only the most viable projects will survive. For cryptocurrency enthusiasts, the more cautious approach may be to focus on more global projects, such as BTC, ETH and products that have become business, not just industry hype.
Stablecoin USDT capitalization increased for the first time in three months, indicating consolidation and further growth of cryptocurrencies. However, it could also prove to be a sign of growing interest in transactions bypassing the traditional banking system due to both the sanctions against Russian banks and the diminished confidence in traditional finance in the world’s least developed countries.
Meanwhile, Glassnode questioned bitcoin’s continued rally, citing that on-chain indicator data hasn’t substantially improved in recent days. Online activity remains subdued, suggesting that few new requests are arriving.
According to the CEO of Morgan Creek, bitcoin will not enter a new phase of growth until 2024 when the halving takes place. However, the current cryptocurrency price is too low; a fair price for BTC should be around $ 30,000.