US inflation figures are pushing the market south

The crypto market was initially able to recover significantly in the last seven trading days. Bitcoin rose to key resistance at $22,834 this Tuesday morning before higher-than-expected CPI inflation data from the US led to a massive sell-off in global financial markets. Within minutes, Bitcoin hurtled south from the daily high of $22,800 by nearly seven percent to $21,336.

At the time of writing, the Bitcoin price remains weak and is listed at USD 20,930, a good eight percentage points below the daily high. Ethereum (ETH) was hit even harder, falling 10 percentage points from its daily high of $1,763 less than two days before “The Merge.” On the other hand, the US dollar index DXY turned on the turbo after a price consolidation in the last few days after the publication of the inflation figures, rising by 1.6 percent against its highest level of the previous week. The continued strength of the US dollar once again prevented a sustained general market recovery.

In a weekly comparison, the Bitcoin price is still holding up relatively well with a price increase of almost eight percentage points. In the last few trading days, the BTC price has benefited from a significant increase in Bitcoin dominance back over 41 percent.

Bitcoin dominance based on values ​​of Cryptocap displayed.

Looking at the market as a whole, several top 100 altcoins show price increases in a weekly comparison. Terra (LUNA’s) comeback in particular has been hotly debated in the crypto community. In a weekly comparison, the LUNA course increased by 108 percent and thus impressively secured the week’s victory. PoW coin Ravencoin (RVN) is also bullish with a 62 percent increase in value.

Due to the impending conversion of Ethereum from POW to POS, miners are increasingly switching to other Altcoins that can be mined with the existing graphics card mining rigs. High volatility is also to be expected for the coming trading days. In addition to the Ethereum merger, investors are expecting other important financial data. You can read here which key figures from the economy are likely to be relevant this week.

Price development of top 10 altcoins

  • A look at the price performance of the top 10 altcoins again paints a mixed picture due to the sell-off in the last few hours.
  • Only half of the ten largest altcoins can generate a price increase in a weekly comparison.
  • Solana (SOL) tops the list of gainers, up 10 percent. Solana is the only top 10 altcoin that has recovered more than Bitcoin.
  • Ripple (XRP) and Binance Coin (BNB) may also increase in value, each with a rise of just over two percent in value.
  • The losing side is led by Cardano (ADA) with a five percent price correction. Ahead of the long-awaited Vasil hard fork on September 22, it seems that investors are still not convinced about this important update. You can read about which price markers will be important at Cardano shortly before the update in the current Cardano price analysis.
  • MEME coins Dogecoin (DOGE) are also weak with a 3 percent price correction and Shiba Inu (SHIB) with a 2 percent drop in value.
  • Polygon (MATIC) also slid a good two percentage points south in a weekly comparison.

Stability of the top 10

  • The comeback of Bitcoin’s market dominance slowed the positive price development of many top cryptocurrencies in the last few trading days.
  • Despite its relative outperformance, trading volume for the key cryptocurrency is still too low to expect a durable bottom.
  • The last few hours of trading showed again how fragile the price recovery in the crypto market is at the moment.
  • As soon as the classic stock indices Nasdaq100 and S&P500 head further south, the crypto market will be taken into the custody of the clan.
  • Bitcoin needs to defend the price mark of USD 20,500 at the end of the day in order not to lose the chance of another attack towards USD 24,000.
  • Should Bitcoin again break below USD 19,892 at the daily close in the coming days, further price corrections are very likely.
  • As always, you can find out which Bitcoin price levels are likely to be relevant in the coming trading days in the current Bitcoin analysis.
  • As in the previous week, there are no ranking changes among the top 10 altcoins to report.

This week’s winners and losers

  • Despite the current price drop in the crypto market, around 50 of the top 100 altcoins show a price increase in a weekly comparison.
  • The list of weekly gainers is led by Terra (Luna) with a price increase of 108 percent, followed by Ravencoin (RVN) with 61 percent.
  • Radix (XRD) and last week’s weekly loser Helium (HNT) may also be up by double digits, each with a 22 percent price increase. Helium can thus at least compensate for part of the sell-off of recent weeks.
  • Rocket Pool (RPL) is new to the top 100 altcoins and continues to be bullish with a 19 percent increase in value. Rocket Pool is a relatively new provider of Ethereum 2.0 staking solutions.
  • As in the previous week, the best performers are completed by Cosmos Hub (ATOM) with a price increase of 16 percent and Evmos (EVMOS) with a value increase of 11 percent.

Many price increases are still unsustainable

  • The list of weekly losers is led by last week’s winner DeFiChain (DFI) with a value correction of 30 percent. So far there has been no more than a technical counter movement.
  • NEXO (NEXO) was also weak with a price drop of 11 percent. Investors appear to have used the price rally of the previous week for increased profit taking.
  • Lido DAO (LDO) also seems to be out of breath shortly before the Ethereum merger. With a price drop of 11 percent in a weekly comparison, the correction is still within limits.
  • The bullish trend in Ethereum Classic (ETC) in the previous weeks seems to be over for now. The ETC price corrected around 10 percentage points in the past seven trading days. It remains to be seen if the Ethereum miners will start mining the Ethereum little brother again after the merger.
  • Investors should continue to watch bitcoin dominance closely in the coming days. If this stabilizes above 41 percent and can subsequently increase further, this should result in increased price corrections for the top 100 altcoins in the current market environment.

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

The map images are made using TradingView created.

USD/EUR exchange rate at time of printing: EUR 1.00.

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