Why the crypto market is getting volatile now

The trading week started with a significant recovery in the US stock indices Nasdaq100 and S&P500. The crypto market may also benefit from this recovery movement and partially break away from the previous week’s lows. Key cryptocurrency 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 in the face of difficult economic developments. The fact that the so-called future open interest, i.e. the total number of long and short bets, according to the blockchain analysis company glassnode, is at a record high level, and at the same time the settlement of leveraged bets has fallen to an all-time low, indicates an imminent increase in the volatility of the crypto market there.

Quarterly numbers in the US are likely to cause volatility

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

Can Bitcoin Follow Mining Company Marathon Digital’s Leaps?

The price development of the major 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 recent summer months, the Bitcoin mining stock indicated at an early stage a bullish price development, which Bitcoin followed with a short delay.

The total market capitalization recovered in recent trading days from a one-week low of USD 833 billion and is trading in the same range as last week at USD 889 billion.

Total market value based on values ​​of Cryptocap displayed.

Price development of top 10 altcoins

  • As in previous weeks, a look at the price performance of the top 10 altcoins over the past seven trading days paints a mixed picture.
  • Polygon (MATIC) tops the list of gainers with about five increases in value. The MATIC price had already increased by eight percentage points in the last week’s 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 two percent.
  • The losing side is led by Cardano (ADA) with a course correction of nine percentage points. The previous weeks outperformer, 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 rate suffered more significantly as a result of a $100 million hack of 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

  • Given 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 seen as positive for the rest of the crypto market.
  • If the bulls manage to stabilize the overall market further with increasing trading volume in the coming days, an attack to the upside becomes increasingly likely. After that, the bitcoin bulls could target the resistance at $20,400.
  • However, should there be another sell-off in the classic financial market over 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 equity indices.
  • Polygon’s bullish price performance over the past few trading days has pushed the tier-2 token past Shiba Inu (SHIB) into ninth place.

This week’s winners and losers

  • Similar to the top 10 cryptocurrencies, the top 100 altcoins show a mixed picture.
  • About half of the 100 largest cryptocurrencies can register 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 major Asian crypto exchange to a Hong Kong investment company 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 could also win a dazzling crypto personality as an external consultant should also have had a positive effect on the HT rate.
  • Casper Network can also convince with a price increase of 35 per cent. Frax Share (FXS) was also bullish with a 30 percent increase in value, followed by Quant (QNT), which was able to rise again by 28 percent after a strong performance last week.
  • The list of outperformers among the top 100 is completed by Ethereum Name Service (ENS) and Trust Wallet Token (TWT), each with a value increase of around 15 percent.
  • In addition to the double-digit price corrections in cryptocurrencies Klaytn and Apecoin, Chain (XCN) also lost 12 percentage points in value.
  • The persistent price weakness of Ethereum Hardfork EthereumPoW (ETHW) is also not surprising. Also this week, the ETHW rate loses a double-digit value by 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 just an assessment by the analyst.

The map images are made using TradingView created.

USD/EUR exchange rate at time of printing: EUR 1.02.

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