- Bitcoin shows stagnant growth, lingers around the $47,000 mark.
- Ethereum tries to break the $3,750 resistance.
- Polkadot and Chainlink turned green, recording gains of 7.30% and 6.85%, respectively.
- Internet Computer breaks out to gain 10.20%, and Harmony crosses $0.27.
The cryptocurrency market comprises hundreds and thousands of digital tokens and coins. The concept is gaining traction in the consumer sector because of its increasing usability. Digital currencies have been around for a while, but the advent of cryptocurrencies gave them a practical outlook. Since the inception of Bitcoin in 2009, the crypto industry has flourished.
Only a few years back, people were unfamiliar with the idea of crypto. However, in the last few years, the likes of Bitcoin, Ethereum, and several other tokens have enlightened consumers. Today, cryptocurrency tokens are used for trading and investing and are also considered investment assets. Crypto is also becoming a popular payment and transaction mechanism.
However, crypto is significantly different from other forms of market. Its market volatility sets crypto trading apart from other financial concepts like forex trading. Crypto offers an exceptional profit margin, but at the same time, it is also plagued with significant risks of loss. Even though several tokens have progressed lately, there is still uncertainty over the future pattern of major crypto tokens.
Bitcoin continues to suffer, goes up by a marginal 0.40%
The year 2021 was a rollercoaster of a ride for the cryptocurrency market. It went through spells of bullish and bearish runs. However, the last quarter was challenging and underwhelming for the sector. As a result, the global crypto market cap has also shrunk to $2.24 Trillion. More money was pulled out of the market, probably because of the holidays. Therefore, several major tokens, like Bitcoin, consolidated majorly.
The leading cryptocurrency token was expected to blast off in the new year, but things are not going according to plan. Bitcoin’s dominance has fallen below 40% again, and it is also unable to form a bullish pattern. Experts have unclear sentiments about the coin’s performance, and this is because the overall market is also indecisive.
At the time of writing, Bitcoin’s price is at a little over $47,100. The coin has managed to gain only 0.40% in the last 24 hours. However, it is still 5.40% below its previous week’s price. The market cap of 18,917,900 BTC tokens is below $895 Billion. The 24-hour trading volume of Bitcoin is a little over $22.18 Billion. The coin is plunging to local support levels, as it failed to move past resistance levels. A persistent downtrend may result in a major crash for Bitcoin in the coming days.
ETH fears another crash after failing to break the local resistance level
Ethereum is another influential coin of the cryptocurrency market. It stands only behind Bitcoin and is one of the most sought-after cryptocurrency tokens. The Ethereum blockchain is home to hundreds of blockchain protocols, and its significance is unparalleled to the crypto industry. It is also the leading altcoin and one of the most anticipated coins in recent times. Lately, the coin has performed below the expectations of analysts.
Ethereum is currently looming around $3,750. The coin has only managed to go up by 0.95% in the last 24 hours. After the bear run of last week, ETH was predicted to go higher. However, this was not the case, and the coin is still 7.40% below its last week’s price. The coin’s market cap has shrunk to $22.18 Billion, and its trading volume is under $8.80 Billion.
As the chart above shows, Ethereum fell from over $4,000 to around $3,700 within a week. The plunging value might be because of the holiday season. Yet, the recovery of the coin is rather underwhelming. There is a fear that if the coin cannot breach the resistance level successfully, a bear run can be triggered. It could lead to a further decrease in ETH’s value in the next few days.
On the other hand, other major altcoins like SOL, ADA, BNB, and LUNA have not performed exceptionally well either. They also suffered almost double-figure percentage losses in the last week. But still, their recovery path has been better than that of ETH’s. This might be a concerning factor for the head of altcoins.
DOT and LINK turn green, AVAX and XLM also rise
Several cryptocurrency projects like Polkadot and Avalanche are considered gems of the crypto sector. Lately, they also justified the hype around them and reached their respective all-time highs. However, they also struggled as the entire market went down at the yearly closing.
Nonetheless, DOT has turned things around for itself. Over the last day or so, it has posted gains of over 7.30%. Its price is nearing the $30 mark and is currently at $29.28. It is still 1.25% below its last week’s price, but DOT is showing major signs of improvement compared to its competitors. The trading volume of DOT is over $886 Million, and its market cap is above $28.73 Billion. The chart below shows that DOT is structuring a solid comeback and might go further up in the coming days.
On the other hand, LINK has increased by 6.84%. It has crossed the $21 mark after it was among the losers in the last week. The coin currently stands at number 22 in the list of top cryptocurrencies by market capitalization. However, as it shows significant signs of progression, investors might be inclined towards the token. This could further its price upwards over the next week.
Among other gainers, AVAX and XLM gained 4.80% and 5.10%, respectively. Both of these coins are regaining their lost value from the previous week. AVAX has also turned green in its weekly price change, which could help the token form a breakout. On the other hand, XLM now has a much-needed break after a frustrating few days.
FTM, ATOM, and CRO are also performing comparatively better in the market. MATIC is struggling after hitting an all-time high of $3. Moreover, Metaverse and gaming tokens are shedding their gains from the ideal bull run of the last quarter of 2021. MATIC and NEAR are staying red in daily and weekly price changes.
The STX and EOS coins were also counted among the tokens that posted gains in the late trading hours. However, meme coins like DOGE and SHIB could not show any considerable progress. Both of these coins are struggling, as they have also crashed out of the list of top 10 cryptocurrencies.
ICP and ONE stand out as top gainers
Even though the previously mentioned coins accumulated gains in the crypto market, the stand-out performers were ICP and ONE, with their double-figure percentage increase in the last 24 hours. Both of these coins have unexpectedly performed well at a time when the rest of the market is uncertain and unsure of what is coming its way.
ICP has gained over 10.22% over the last 24 hours. It has crossed the $27 mark with its recent price surge. Also, the coin is now about 5% above its previous week’s price. The market cap of ICP is above $5.29 Billion, and its trading volume is over $373 million. The coin is receiving more attention from investors and traders, which might result in more investments in the token.
On the other hand, Harmony’s ONE is also following the same pattern. It has gained over 10% in the last 24 hours to cross $0.27. The weekly price change of the coin is also green now. The coin progressed by about 3% over the previous 7 days. With over 11 billion ONE tokens in circulation, the market cap of the token has surpassed $3.15 Billion. Its trading volume is around $264 million. The coin is now counted among the top 50 cryptocurrencies by market capitalization.
The cryptocurrency market is currently showing mixed results. There are no significant losers in the market, but the sluggish growth of the coins in the first week of the new year is a concerning factor for the crypto community. The market might gain some momentum in the coming days or weeks, but investors and traders are currently not so optimistic about the market.
Historically, January has been a good month for the cryptocurrency sector. This is why many experts continue to believe that this is just a correction phase before the market blasts off. However, the next couple of weeks will paint a clearer image of what the market has to offer.