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Bitcoin, the first and largest cryptocurrency, briefly plunged to lows of $32,950 on Jan. 24 to reach its lowest level since July. BTC has since recovered back to trade above the $38,000 mark but is still down almost 45% from a record high of $69,000 in November.
Ethereum and the majority of altcoins were posting a rebound at press time. On-chain analytics firm, Santiment believes Ethereum might maintain stable prices if utility continues rising.
It says ”Ethereum has regained the $2,550 level to end the week. With Bitcoin ending the week with a nice push of its own, and ETH’s active address remaining stable, the No.2 crypto asset by market cap should maintain stable prices if utility continues rising”.
Source: Santiment
Analysts voice out the possibilities of short term rallies in the coming weeks. Sean Farrell, head of digital asset strategy at FundStrat says “It is possible that we could see short-term rallies over the next several weeks, but overall maintain that monetary tightening will continue to present choppy waters for crypto through Q1 and into Q2.”
Mike Novogratz, Galaxy Digital founder & CEO, told CNBC ‘Closing Bell’ that he believes it’s going to be a tough year for assets due to the latest Fed resolve. The Fed left the policy rate unchanged at this week’s FOMC meeting but signaled that a rate hike was imminent come March. Uncertainty on the pace of hikes post-March remains elevated, contributing to stock market volatility this week.
The crypto billionaire had earlier stated in a tweet ”crypto will have a hard time rallying until stocks find a base. That said, crypto already had a decent sell-off and is running into some buying support. Finally, the best traders get good at gallows humor”
Positivity Remains
Cryptoanalyst, Michael Van de Poppe speaks on Bitcoin’s price outlook ”Nice try of Bitcoin to make some momentum upwards, but it’s weekend -> trappy times and below $38.5K I’m not really seeking for any longs at this point. Remaining calm”.
Crypto exchange Kraken believes that Bitcoin and Ethereum’s bull run might not be over. In its January 2022 crypto on-chain digest, Kraken says that Bitcoin’s spent output profit ratio (SOPR) and Ethereum’s market value to realized value (MVRV) Z-score indicate that ETH and BTC are trading below their fair value, but the exchange says that a rebound is possible.
Across the altcoin space, several digital assets may be significantly down from recently established highs but many are recording positivity in different developments and milestones reached.
Ripple recently reports a 46% quarter-quarter increase in sales, according to the company’s recently published Q4 report. Ripple says that it keeps seeing more global demand for the ODL product, which now boasts 20 payout markets. CEO Brad Garlinghouse recently said that his company was in the strongest financial position to date with $1 billion in the bank.
Monica Long, GM of RippleX gives a brief recap of progress made so far: ”Another quarter, another XRP Markets report! Some highlights from the past few months: 130M transactions & $113B transacted on the XRPL up from 90M transactions & $69B transacted in Q3 wow!), the launch of $WXRP on Binance/others, allbridge_io, interoperability, and more”
