Crypto Market Week In Review: February 10, 2023
Last week was quite successful in the world of cryptocurrencies. Although we did not make huge profits, the price of BTC remained in a fairly stable range. It is true that the price of Bitcoin in US dollars is lower than it was a week ago, but the drop is not a reason to panic. However, there was a lot of interesting news last week, which we will summarize in today's cryptocurrency review. So what happened to crypto this week?
What happened to cryptocurrency this week?
But before we get to the news, let's take a look at Bitcoin and Ethereum prices and see which cryptocurrency projects have earned the most this week.
Bitcoin price this week
Bitcoin prices have been relatively quiet this week. BTC's seventh high was $23,678.10 and its seventh low was $21,754.13. At the same time, we see a solid green candle when the Bureau of Labor Statistics releases labor market data.
Source: TradingView, data retrieved on February 10, 2023
Today Bitcoin (BTC) price is $21,780.51 and the market cap is $420,007,235,627. Cryptocurrency dominance of the overall market remains stable at 39.68%
In terms of investor sentiment, they remain positive. The fear and greed index is at 48, indicating that traders are still showing signs of greed.
Ethereum price in USD this week
Ethereum prices also stalled this week. ETH's seventh high was $1,643.64 and its seventh low was $1,536.59. Similar to Bitcoin, macroeconomic data produced a significant green candle on February 7th.
Source: TradingView, data retrieved on February 10, 2023
So what is the current price of Ethereum? The price of ETH today is 1,536.59 and the market capitalization is more than $188,147,975,604 billion. ETH dominates the overall market with 17.57%.
This week's biggest cryptocurrency enthusiast
Although Bitcoin and Ethereum were somewhat stagnant as their prices fluctuated in very narrow ranges, some altcoins fared much better. The top 100 cryptocurrencies that gained for the week are mostly AI-based cryptocurrencies that benefited greatly from the recent success of ChatGPT.
Over the past seven days, the biggest price increase was recorded for the following projects:
- SingularityNET (AGIX) - 101.29%.
- Chart (BRT) - 57.09%
- Baby dose coin (BabyDose) - 55.32%
- Clover (KLV) - 49.24%
- AI Recovery (FET) - 46.32%
Altcoins that gained more than 20% last week include Frax Share (FXS) and Lido DAO (LIDO). The project recently took a hit, probably due to the successful deployment of the Ethereum producer's testnet for the update in Shanghai.
Crypto news of the week
Since we have already analyzed the situation in the crypto market this week, let's take a look at the most important news.
Data on the US labor market is positive, but the Fed is worried
All financial markets were waiting for data on the US labor market and the latest announcement from the Fed. The first one went very well. However, they do not soften the position of the Federal Reserve. In January, the number of people employed in the United States increased by 517,000 people. This is good news. At the same time, the unemployment rate fell from 3.5% to 3.4%, the lowest since 1969.
What the general public may want is the concern of the Fed. The central bank hoped that labor market conditions would deteriorate enough to cool the market and thereby reduce inflation. As a sign of the economy's strength, there are now two job opportunities for every unemployed person. The new information therefore strengthened the strategy of the monetary authorities to raise interest rates. In response to the Fed's latest statement, the dollar strengthened again.
A golden cross appeared on the Bitcoin chart
A bullish signal, a golden cross, appeared on the Bitcoin chart for the first time in 510 days, or about 1.5 years. Historically, this situation starts a bull market.
For example, during the last surge, two months after this signal was created, the price of Bitcoin started to rise and eventually reached an ATH of over $69,000.
In the history of Bitcoin, the Golden Cross has already appeared five times: October 28, 2015, April 23, 2019, February 18, 2020, May 20, 2020 and September 14, 2021. Gold cross design.
Source: TradingView, data accessed on February 7, 2023
The first withdrawal of ETH from the participation contract has been successfully completed
The opportunity to withdraw Ethereum (ETH) from the ETH 2.0 Participation Agreement is approaching. Last week, the developers installed a new test network called Zhejiang. This week, the team released the Shanghai-Chapella (Chapella) update. According to the project, the first withdrawal of ETH has already been completed.
The Testnet deployment allows developers to prepare for the Shanghai Update deployment. The second major post-merger update changed Ethereum's consensus algorithm from proof-of-work to proof-of-stake.
Institutions are moving away from cryptocurrencies
A CoinDesk analysis found that despite the strong comeback of bitcoin and altcoins in January, cryptocurrency startups raised just $548 million, compared to more than $6 billion in January 2022. Three factors likely influenced the situation.
- The impact of the FTX accident on operating fundraising was huge; This has led to strict financing procedures, and anyone who borrows money without due diligence in a bull market is ten times more careful.
- Cryptocurrency profits are still uncertain. Venture capital funding usually peaks in bear markets, not "when it's cheap," but when the possibility of recovering risky assets is widely considered.
- High interest rates make obtaining external financing a) more difficult and b) more expensive due to high interest rates, which leads to venture capitalists taking advantage of businesses that are unwilling to accept high interest rates or wait for interest rates to drop. making them more vulnerable. Cheap entry. Loans, which stimulate demand for risk (it is not known when this will happen). Many venture capital funds are now experiencing financial difficulties due to unprofitable seed funding; Others want to avoid repeating this mistake.
Binance Stops USD Transfers. What happens:
Binance, the world's largest cryptocurrency exchange, has announced that it will stop all US dollar bank transfers for its customers outside the US starting February 8. However, the American branch of the exchange Binance.US assured that the suspension will not affect local customers.
The mysterious statement caused a stir. Many suspect that exchanges with liquidity problems are already critical and hide the true picture of the situation in the community. However, one can only guess about that.
There was no official reason for the suspension, but the company said it was doing its best to restore the service. The exchange's CEO, Changpeng Zhao, explained in an interview that the problem affects only 0.01% of monthly active users and that the company understands that this is a bad user experience.
The company appears to be in trouble with the US banking system after SWIFT transfer partner Signature Bank announced that from February 1 it will only process transactions involving the US banking sector and over $10,000. The exchange is currently looking for a new SWIFT provider.
Summary:
This week has been pretty quiet for the crypto market. It is true that there has been a lot of good news and bad news, but Bitcoin has managed to stay above support. However, it must be remembered that this market is very unpredictable and volatile. Cryptocurrency prices can swing in any direction and trends can change from hour to hour. This is brilliantly illustrated by AI-driven cryptocurrencies, which became the most profitable week after ChatGPT. What will next week bring? We will have to wait and see.
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A week-by-week overview of the crypto markets. It first appeared on StealthEX on February 10, 2023.