Why the crypto market is becoming volatile now

The trading week started with a significant recovery in the US stock indices Nasdaq100 and S&P500. The crypto market can also benefit from this recovery movement and partially break away from the lows of the previous week. The key crypto currency Bitcoin stabilized again last Thursday at USD 18,150 and subsequently recovered towards the psychologically important USD 20,000 mark. Despite an unchanged strong US dollar index DXY, the crypto sector continues to show remarkable resilience to the difficult economic developments. That according to blockchain analysis company glassnode In addition, the so-called Future Open Interest, i.e. the total number of long and short bets, has reached an all-time high and at the same time the liquidations of leveraged bets have fallen to an all-time low, indicating an imminent increase in volatility on the crypto market.

Quarterly figures in the US are likely to cause volatility

In addition to new inflation data from Europe tomorrow, Wednesday, investors are currently waiting for the quarterly figures from major US industry leaders such as Netflix and Tesla. If the latest quarterly reports are positively received by the market and the classic financial market expands its recovery movement, this should also have a positive effect on the crypto market.

Can Bitcoin Follow Mining Company Marathon Digital’s Jump?

The price development of the large Bitcoin miners Marathon Digital Holdings Inc. was also positive. Starting from the weekly low last Thursday, the price was able to gain a remarkable 29 percentage points within three trading days. Even before the last Bitcoin price rally in the past summer months, the Bitcoin mining share indicated a bullish price development at an early stage, which Bitcoin followed with a short delay.

Total market capitalization recovered in the last few trading days from a week low of USD 833 billion and is trading in the same range as last week at USD 889 billion.

Total market capitalization based on values ​​of Cryptocap shown.

Price developments of the top 10 altcoins

  • As in the previous weeks, a look at the price development of the top 10 altcoins in the last seven trading days paints a mixed picture.
  • Polygon (MATIC) tops the list of winners with around five increases in value. The MATIC course had already increased by eight percentage points in the last week of trading. Interestingly, it is followed by Ethereum (ETH) with a price increase of almost three percent and Bitcoin with a price increase of at least a good two percent.
  • The losing side is led by Cardano (ADA) with a nine percentage point course correction. The outperformer of the previous weeks, Ripple (XRP), is also one of the biggest losers with a good five percent discount. The list of underperformers is completed by Solana (SOL) with a price loss of four percent. The SOL course suffered more significantly as a result of a USD 100 million hack by the data oracle Mango Markets on the high-speed blockchain.
  • Overall, five of the ten largest crypto projects show an increase in value in the last seven trading days.

Crypto Market: Top 10 Stability

  • Considering a difficult market environment, some of the top 10 altcoins are holding up well this week.
  • The fact that Bitcoin and Ethereum are showing a positive trend can also be viewed as positive for the rest of the crypto market.
  • If the bulls succeed in further stabilizing the overall market with increasing trading volume in the coming days, an attack on the upside becomes increasingly likely. Then, the bitcoin bulls could target the resistance at $20,400.
  • However, should there be another sell-off on the classic financial market in the next few trading days, it is important for crypto investors to keep a close eye on whether the Bitcoin price can continue to buck the bearish trend in the stock indices.
  • Polygon’s bullish price development in the last few trading days has pushed the layer-2 token past Shiba Inu (SHIB) to ninth place.

Winners and losers of the week

  • Similar to the top 10 cryptocurrencies, the top 100 altcoins show a mixed picture.
  • Around half of the 100 largest cryptocurrencies can record a price increase for themselves.
  • The list of outperformers is led by the Huobi token with a value increase of almost 50 percent. The sale of the large Asian crypto exchange to an investment company from Hong Kong caused a noticeable price increase in the last seven days after a significant price increase in the previous week.
  • The fact that Tron inventor Justin Sun was also able to win a dazzling crypto personality as an external consultant should also have had a positive effect on the HT course.
  • The Casper Network can also convince with a price increase of 35 percent. Frax Share (FXS) was also bullish with a 30 percent increase in value, followed by Quant (QNT), which was able to increase again by 28 percent after a strong performance last week.
  • The list of outperformers among the top 100 is completed by the Ethereum Name Service (ENS) and the Trust Wallet Token (TWT), each with an increase in value of around 15 percent.
  • In addition to the double-digit price corrections in the cryptocurrencies Klaytn and Apecoin, Chain (XCN) also lost 12 percentage points in value.
  • The persistent price weakness of the Ethereum Hardfork EthereumPoW (ETHW) is also not surprising. This week, too, the ETHW course loses a double-digit value with 10 percentage points.
  • The fact that only four of the top 100 altcoins show a double-digit price discount also confirms the relative strength of the crypto sector.

Disclaimer: The price estimates presented on this page do not represent buy or sell recommendations. They are merely an assessment by the analyst.

The chart images were created using TradingView created.

USD/EUR exchange rate at the time of going to press: EUR 1.02.

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