The cryptocurrency trading revolution exploded more than ten years ago and led to an almost unprecedented economic and financial earthquake. As a result, people are learning to change their approach to payment and investment systems, pushing up the price of many cryptocurrencies. Such a rapid change has not gone unnoticed on the boards of the world's major central banks. In fact, in an increasing number of countries, central banks are working on launching centralized digital currencies, known as CBDC. This…
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This Week’s Summary
- The Crypto Market ends the week at a total market capitalization of $1,973 trillion.
- Bitcoin is down by almost 12% and trading just above $42,000.
- Ethereum is down by roughly 18% after a terrible week.
- XRP dropped by almost 13% over the past seven days.
- Most altcoins are trading in the red, with very few exceptions.
- The DeFi sector lost over $7 billion from the Total Value Locked in protocols, which now stands at $92.35 billion.
Crypto Trends 2nd – 9th of January 2022: Market Analysis and Performance
The crypto market ends the first week of 2022 in a surprising bloodbath. Firstly, the market capitalization dropped by almost $300 billion and below the $2 trillion level. Furthermore, most crypto assets have traded in the red, thus losing most of their late 2021 gains.
Bitcoin is the first indicator that things are going downhill every time the bears take control over the market. The king coin went down a waterslide this week as it lost almost $7,000 in just four days. It all started when the U.S. Federal Reserve announced plans to reduce its balance sheet. Additionally, the ongoing crisis in Kazakhstan hit most financial markets worldwide. As always, the crypto market felt the blow as well.
Ethereum investors were disappointed to see their favorite asset lose the $4,000 level last Sunday. This time around, they can only hope the second crypto in command remains above $3,000. Ethereum lost almost 18% of its value in the past seven days. At the moment, it is trading at only $3,150.
Altcoins & DeFi
Ripple’s XRP is also following the market downtrend as it records a 13% loss this week. With a market capitalization of just above $35 billion, XRP could soon exit the top-10 cryptocurrencies by market cap. At the time of writing, XRP was trading at $0,75.
Elsewhere, most altcoins are trading in the red. Cardano is down by almost 15% and very close to trading below $1 again. Solana’s value dropped by nearly 20% this week and Avalanche by 23%. Lastly, Shiba Inu decreased by almost 17%, and Dogecoin lost 13% of its value.
The only altcoin running against the wind is Chainlink, with a 29% value boost. Otherwise, no significant asset has managed to avoid the bloodbath. Even the Metaverse sector is losing value with every passing hour. For instance, Decentraland is down by nearly 11%, Axie Infinity dropped by 25%, and Sandbox lost 20% of its value.
Crypto Market Analysis – What’s in the News?
- Airbnb announced that it could introduce crypto payments soon.
- Crypto miners are not leaving Kazakhstan despite the chaos in the country.
- The U.S. Congress will reportedly hold an oversight hearing on Bitcoin mining’s environmental impact.
Next Week’s Market Forecast
As the weekend draws to a close, the crypto market licks its wounds after a dreadful week. It is not the start to the New Year that most investors desired. Nevertheless, a slight recovery in the last 24h across the board leaves us optimistic for the week ahead. We can only hope that the market will recover sooner than later.