Crypto ends the year on a stable note

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By Sam Blumenfeld

Over the past two weeks, Bitcoin (BTC, Tech/Adoption Grade “A-”) and the broader crypto market have been relatively stable.

Volume tends to dwindle during the holidays, so trading could remain relatively unexciting well into the New Year…unless significant market development occurs.

Despite stocks falling in the final trading hours of 2022, the crypto has for the most part continued to hold its own.

Bitcoin is down less than a percentage point in today’s trading as it seeks to establish a new bear market floor. It is currently hovering around $16,500.

The market leader’s commercial management remains neutral for the time being. But it would be a negative development if it fell below the low of its established trading range between $15,500 and $25,000.

Bitcoin hasn’t topped its 21-day moving average since falling below it on Dec. 16, but tested it 10 days ago.

The short-term momentum indicator is less important than maintaining a neutral trade direction. But it would be helpful if the market leader could distance itself from the lower end of its recent trading range.

Here is the price of Bitcoin in US dollars via Coinbase (COIN):

Ethereum (ETH, Tech/Adoption Grade “B”) largely mirrored Bitcoin’s performance over the past two weeks. It is generally stable over the past week and month, and it continues to trade close to its pre-FTX crash prices.

Ethereum’s weekly, monthly and yearly performance is in line with that of Bitcoin. However, it has outperformed the market leader with a 12% gain over the past six months against the latter’s 14% decline.

Like Bitcoin, Ethereum has not exceeded its 21-day moving average since December 16.

Even so, it is trading a little higher than two weeks ago. It is still hovering around the $1,200 mark, which is significantly above its bear market low of $880.

The relative strength of ETH could bring additional stability to altcoins that reflect its price action.

Here is the price of Ethereum in US dollars via Coinbase:

Notable News, Ratings & Reviews

Eight cryptocurrencies are currently rated “Buy” on Weiss Ratings, meaning they have “B-” ratings or better.

1. Bitcoin (BTC, overall rating “B”)

2. ChainLink (LINK, overall rating “B”)

3. OKB (OKB, overall rating “B”)

4. Polygon (MATIC, overall grade “B”)

5. Cardano (ADA, overall rating “B-“)

6. Ethereum (ETH, overall rating “B-“)

7. LiteCoin (LTC, overall rating “B-“)

8. Uniswap (UNI, overall rating “B-“)

Elsewhere in the crypto-verse…

Fiji has elected a pro-Bitcoin prime minister, which could have a positive impact on adoption for the country. Fijian Prime Minister Sitiveni Rabuka took office on December 24, and he has already discussed the possibility of making Bitcoin legal tender next year through two potential bills.

And after

The crypto continues to struggle with negative sentiment stemming from inflation, fears of a recession, and expectations of higher interest rates.

Thursday’s jobless claims data showed the labor market may be showing signs of weakening, which the Fed may have been expecting.

The crypto market did not see a significant surge right away. But he is in line to benefit if the Fed decides to pivot when the labor market cools further.

Fed officials spooked the market when they called for a 5.1% terminal rate – or maximum interest rate – earlier this month. But it will likely bode well for risky assets, including crypto, if central bankers decide to end the hikes before the target interest rate hits 5%.

Current macroeconomic challenges make it more difficult to trigger the next bull market. But it’s only a matter of time before institutional and governmental adoption lights the fuse.

I look forward to what 2023 holds for cryptos. And the Weiss Crypto team and I look forward to informing you of the best short-term and long-term profit opportunities.

Until then, best wishes for the new year!

Better,

Sat

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