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WMA: New Year, Same Problems for Bear-Driven Crypto Market

Get the weekly summary of crypto market analysis, news, and forecasts!

This Week’s Summary

  • The Crypto Market ends the week at a total market capitalization of $795 billion.
  • Bitcoin lost nearly 2% in value in the last week.
  • Ethereum dropped by almost 2% over the past seven days.
  • XRP decreased by nearly 3% of its value this week.
  • Almost all altcoins are trading in the red, with very few exceptions.
  • The DeFi sector increased the total value of protocols (TVL) to around $39 billion.

Crypto Trends 26 December 2022 – 1 January 2023: Market Analysis and Performance

The crypto market closed and buried 2022 as one of the worst years in its history. Unfortunately, it has little to celebrate stepping into 2023. Most traders are waking up from the New Year’s Eve hangover to see almost all crypto assets trading in the red. Even the market capitalization dropped by about $25 billion, signaling that the bearish sentiment is far from over.

Bitcoin froze somewhere around $16,500 this week, and it seems it will hibernate there for a while. The king crypto has moved very little around that mark for weeks. Meanwhile, its market cap is slowly dropping toward the $300 billion level, a disappointing low for an asset that once surpassed $1 trillion.

Ethereum follows in Bitcoin’s steps and drops by another 2% this week. The second crypto in command lost the little it had gained only a week ago. This seesawing movement forces it to drop below the $1,200 level and discourages its increasingly smaller fan base.

Altcoins & DeFi

It has been a slow end of the year for the entire crypto market. This is visible in the shallow red sea, covering almost all altcoins. For example, XRP is down by nearly 3%, similar to Polkadot and Shiba Inu. Meanwhile, BNB is down by 1%, Dogecoin by 8%, Cardano by 4%, and Polygon by 5%.

Only a handful of altcoins can take pride in starting 2023 in the green. For instance, Litecoin is up by 7%, Monero by 2%, and TRON by nearly 1%.

The Metaverse sector shares the same lousy sentiment as the rest of the crypto market. For instance, Theta Network is down by 6%, Axie Infinity by 13%, The Sandbox by 14%, and Decentraland by 9%. Only ApeCoin is up by 3% and ICP by almost 7%.

The DeFi sector added almost $1 billion to the total value of locked protocols (TVL), now at nearly $39.03 billion.

Crypto Market Analysis – What’s in the News?

  • The authorities arrested the Mango Market’s attacker in Puerto Rico.
  • Defrost detailed new plans to refund hack victims.
  • Crypto Adventure launches crypto guest post services.

Next Week’s Crypto Market Forecast

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The crypto market landed in 2023 like a deflated ball on wet turf. It may be a New Year, but the industry faces the same problems as in 2022. Moreover, it seems the bears don’t care much about the change in the calendar and maintain complete control. Nevertheless, we maintain a high optimism, typical of every 1 January, that this year will be better.

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