What next for Bitcoin, Ethereum, BNB, Solana, Cardano, XRP and Terra’s Luna

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Bitcoin and cryptocurrency prices rebounded somewhat after a massive selloff this week.

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Despite the rally since Friday night’s crash, the price of bitcoin has fallen more than 10% from this period seven days ago and nearly 30% from its all-time high of nearly $ 70,000 per bitcoin fixed last month.

Meanwhile, most of the other major cryptocurrencies, including ethereum, its biggest rivals BNB, solana and cardano from Binance, as well as Ripple’s XRP and memes-based dogecoin also fell sharply, wiping out around 300. billions of dollars in value in a matter of days. A few smaller pieces, Terra’s luna and Polygon’s matic, reversed the trend and both increased by around 30% from the same time last week.

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The bitcoin and crypto market collapsed this week, losing over $ 300 billion of its total value … [+] as the price of Ethereum, BNB, Solana, Cardano, Ripple’s XRP, and Binance’s dogecoin fell.

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The crash in bitcoin, ethereum and broader crypto prices has been attributed to fears over the spread of the Omicron variant of Covid-19 and expectations that the US Federal Reserve may accelerate plans to ease policy monetary policy in the face of soaring inflation and robust jobs. Marlet.

“Digital assets were rocked by broader risk conditions linked to Omicron and expectations of a more aggressive Fed, but did not pay off properly until Friday, due to the contagion in equities,” Martha Reyes, head of research at Digital Asset Prime brokerage and exchange Bequant, said in comments sent by email.

This week, the CBOE Volatility Index (VIX) hit its highest level since January as investors retreated from perceived heightened risk, although Reyes expects the uncertainty to be short-lived.

“It is rare for the VIX to experience such large spikes and the market generally continues to have positive returns over periods of one to six months, as the panic and forced sales of OmniFed subside, as we have seen. ‘saw last January, “Reyes added.

Others have spotted similarities to the pandemic market crash of March 2020 and this week’s sell-off of stocks and cryptos, with the market rebounding quickly from panicked lows.

“The current situation closely resembles what happened in March 2020 as we see stocks plunge 5% from recent highs and negativity spreads to other markets, including digital asset markets. “Anto Paroian, COO, at crypto hedge fund Ark36, said via email, also highlighting the wild swings in bitcoin prices over the summer and” how much the market has rebounded afterward. “.

However, Paroian warned that the bitcoin and crypto market could head for more pain in the weeks and months to come as volatility scares traders.

“One of the key indicators of the bitcoin bull market – the 20-week simple moving average – has now been decisively broken, so the outlook is currently bearish in the near to medium term. short term is that the market always seems oversaturated with a leverage effect that creates conditions in which the corrections we have just seen are likely to be repeated. “

The crypto market is still largely dominated by bitcoin price movements, with bitcoin’s fortunes dictating the market at large. Bitcoin is the largest cryptocurrency by value, with a market cap of around $ 1,000 billion. Ethereum, the second largest cryptocurrency, has a combined value of around $ 500 billion, and together they make up well over half of the $ 2.2 trillion crypto market.

However, the dominance of bitcoin, a measure of bitcoin’s value relative to the broader market, has plummeted over the past year as small coins make outsized gains thanks to the craze for non-fungible tokens ( NFT) and the growing interest in decentralized finance (DeFi) – using crypto technology to recreate traditional financial services without resorting to banks.

Ethereum, the largest NFT and DeFi platform, along with its main rivals BNB, Binance’s solana and cardano, have all added triple-digit percentages in recent months, and some bullish investors expect them to continue. to climb.

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The price of bitcoin has lost around 20% over the past month, plunging bitcoin into a technical bear … [+] market and weighing on the price of Ethereum, Binance BNB, Solana, Cardano, Ripple XRP and Dogecoin.

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“Savvy investors, whether retail or institutional, know that crypto is the future of money,” said Nigel Green, managing director of the financial advisory and asset management group deVere, in comments. comments sent by email. “In times of volatility, where there are weaker entry points to complement portfolios, they typically continue to pump money into the digital asset market.”

Green expects Solana, Ethereum’s rival which has climbed nearly 10,000% since the same period last year, to outperform both bitcoin and Ethereum in 2022.

“[Solana is] likely [to] outperform both bitcoin and ethereum next year, ”Green added, noting solana’s“ profitability ”and“ the momentum driven by a booming DeFi space as retail investors seek funding opportunities alternatives and that institutional investors continue to accumulate ”.

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