Despite new lows for the year in the US stock indexes Nasdaq100 and S&P500 and a persistently strong US dollar, the crypto market is still holding its own. Unlike the major stock markets, the crypto sector appears to be increasingly bottoming out.
Although the Bitcoin price was unable to regain the psychologically important $20,000 mark on Friday and turned south along with the stock indexes after the US unemployment rate was announced, the price drop can still be considered relatively manageable in light of the new yearly lows in the stock market classified. At the start of the week on Monday afternoon, the key cryptocurrency also asserts itself significantly better than the classic financial market.
New inflation data may make a decision
Investors should therefore pay particular attention to the release of the latest US inflation figures on Thursday 13 October at 14.30 (CET). A positive surprise in the form of a sharper-than-expected fall in consumer prices can translate into a bullish price increase. Ideally, the classic financial market will then start a recovery rally, which can subsequently have a particularly positive effect on the crypto market.
It is also notable that the continued strength of the US Dollar Index (DXY) appears to be increasingly leaving the crypto sector cold. Despite a persistent bearish situation in the global financial markets, some altcoins were able to hold their own this week, increasing in value by double digits. As in the last few weeks of trading, the token from Tokenize Xchange (TKX) with a value increase of 27 percent and Ethereum Name Service (ENS) with a price increase of 22 percent are among the biggest winners.
Quant (QNT) is bullish again with a further 16 percent price increase in a weekly comparison. In terms of total market capitalization, the relative price strength of the crypto market is confirmed. At $897 billion, the crypto sector’s market capitalization remains well above its low for the year. However, to shake off the correction in the short term, the total market capitalization must first regain $1 trillion.
Price development of top 10 altcoins
- In terms of the price development of the top 10 altcoins, this week a mixed picture emerges, as was the case recently.
- While Binance Coin (BNB) corrected by almost four percent, also due to the hack on the BSC blockchain, the majority of the top 10 altcoins held up well. Mem-only coin Shiba Inu (SHIB) also lost about 2 percentage points on a weekly basis.
- Ripple (XRP) has outperformed its peers by a wide margin, gaining 15 percent in value in the last week’s trade.
- Polygon (MATIC) is also bullish with a price increase of 8 percent.
- After several bearish weeks, the second largest cryptocurrency Ethereum (ETH) is holding its own in the current market environment, gaining well over two percentage points in the last seven trading days. The ether price is thus stronger than Bitcoin, which can only increase by one percentage point in a weekly comparison.
- Overall, nearly half of the major altcoins rose more than Bitcoin in the past trading week.
- As in the last few weeks, the crypto market can continue to hold its ground despite significant price drops in the global financial markets.
Crypto Market: Top 10 Stability
- Despite continued strength in the US dollar and new annual lows in many major stock indexes, many of the top 10 altcoins are trading well above their annual lows this week.
- However, to start a new attempt to rise in the coming days and weeks, the trading volume for Bitcoin must also increase gradually. Only then should the price increase be of a sustainable nature.
- As long as Bitcoin, and with it the other altcoins, are able to assert themselves bullishly against the US stock indices, a short-term recovery is more likely than a return to the annual lows of June this year.
- Looking at the ranking of the top 10 altcoins, there is a change of place to report. Dogecoin (DOGE) moves past Polkadot (DOT) into seventh place.
This week’s winners and losers
- Bitcoin’s continued sideways movement with a concomitant narrowing of the trading range over the past few days suggests a timely price breakout.
- An attack on the top of the USD 20,400 trading range is currently favored.
- Looking at the top 100 altcoins, the picture is a bit positive this week. Almost 60 of the top 100 cryptocurrencies show a price increase in a weekly comparison.
- As mentioned at the beginning, the list of outperformers is led by Tokenize Exchange with a price increase of 27 percent.
- Huobi (HAT) also had double-digit gains with a 26 percent increase in price, followed by Maker (MKR) with a 24 percent increase in value. The biggest loser in recent weeks, Evmos (EVMOS), is also recovering, up 16 percent each, along with Elrond (EGLD) and Quant to the north.
- The list of weekly losers is led by Celsius (CEL) with a correction of 23 percent. In light of Celsius’ insolvency and the latest data scandal, this price drop can still be described as relatively small.
- Algorand (ALGO) and Chiliz (CHZ) should also pay tribute to their bullish previous weeks, each correcting around eight percentage points in a weekly comparison.
- Interestingly, the Lido DAO (LDO) price is also down by six percentage points, even though Ethereum itself is up for the week.
- The fact that despite the turbulence in global financial markets, only one cryptocurrency has again slipped double digits in value further supports the relative strength of the crypto sector in the past few weeks of trading.
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 1.03.
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