Ethereum cryptocurrency price lead rebound, Solana, Polkadot.


Yesterday, the total capitalization of the cryptocurrency market was about to fall below the $ 2 trillion mark for the first time since September.

It has gained more than 4% in the last 24 hours to avoid this fall, thanks to Ethereum (up 8%), Solana (8%), Binance Coin and Polkadot (both up 11%). The other top 10 medals are also doing well. All Bitcoin (4%), Cardano (7%), XRP (6%) and Terra (10%) recorded record gains.

So suddenly it’s a bull market again, as FTX Founder and CEO Sam Bankman – Fried tweeted?

Ethereum is down 33% from the full-time high of $ 4,878 achieved two months ago, nothing says it can’t go back there, the market is still uncertain.

But markets around the world are changing. The US Federal Reserve plans to raise interest rates three times this year to curb inflation. The result, according to co-founder Delphi Digital, Kevin Kelly, a reduction in the amount of money available for borrowing and spending. ” When liquidity is abundant and increasing, $ BTC and crypto-assets tend to do better; when liquidity tightens, they are in trouble“, he confirmed.

It also contributed to the volatility of US stock markets. The S&P 500, which posted a return of 26.9% last year, is down just over 1% for the start of 2022. The NASDAQ is down more than 3% this year after rising 21.4% in 2021. About the Dow Jones , has moved aside since the beginning of the year after recording gains of 18.7% in 2021.

Why are we mentioning this, since these are completely different markets? Well, because they really are not. Both stocks and cryptocurrencies are considered risky assets due to their volatility. In addition, they have behaved the same recently. According to a recent report from crypto-asset data firm Kaiko, the correlation between bitcoin and US stock indices is at its highest level since July 2020. Meanwhile, the correlation of BTC with gold is lower than 0, which means that there is a tendency to move in the market. reverse direction of inflation hedging.

In turn, Ethereum has a coefficient of 0.72 with Bitcoin over the past year, according to data from Cryptowatch where 1 corresponds to a synchronous movement.

So crypto as a whole is on the rise. For today. Come back tomorrow to see how things stand.

Solana victim of her own success!

Solana victim of her own success!

Bitcoin hits a six-month low below $ 34,000

Bitcoin hits a six-month low below $ 34,000