- Macro developments in the global economy and expectations of increase in interest rates, cryptocurrency It paused the rally in its markets and pushed things in the opposite direction.
- Despite the developments, “Bitcoin shrimps” continue to accumulate. While Cardano stands out in developments on the blockchain side, XRP network activity is at the highest levels of the last two years.
After taking a strong stance last week, cryptocurrencies took the opposite route. As a result of the declines, the total market value fell below 1 trillion dollars. bitcoinIt has pulled back significantly from the 200-week moving average (MA) of $22,800 and failed to make a weekly close above it.
Hence, these levels still continue to act as a resistance against Bitcoin. At the time of writing, BTC was trading at $21,248 with a market cap of $405 billion. Interestingly, BTC addresses with a balance of less than 1 BTC continued their purchases. On-chain data provider Glassnode stated the following on the subject:
“The Bitcoin Shrimp cohort with a balance of less than 1 BTC has increased their relative holdings in the circulating supply of $BTC from 5.2% to over 6.0% since the LUNA collapse. This is equivalent to 156k BTC added to the Shrimp chain balances in total.”
On the other hand, Bitcoin and other crypto assets, FedIt came under pressure just before the announcement of this week’s rate hike. The global macro environment looks quite fragile and inflation continues to rise. Analysts continue to expect the US Federal Reserve to raise interest rates by 75 basis points. Some experts also continue to discuss the possibility of a 100 basis point rate hike to rein in rising inflation.
Ethereum and Other Cryptocurrencies Also Under Pressure
EthereumThe altcoin world, led by , also experienced a sharp recovery last week. Also, institutional interest in Ethereum has continued to rise lately. However, the pullback in the broader crypto space is also putting pressure on Ethereum and other altcoins.
Last Sunday, ETH price rallied as high as $1,640. However, it has corrected more than 10% in the last two days and is currently trading around the $1,450 level. Over the past few hours, ETH price has soared from its intraday low of $1,360 after a spike in address activity.
The last ETH price rally came on the news that The Merge upgrade will take place in mid-September. Apart from Ethereum, other major altcoins registered a correction.
You can follow the current price action here.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, KoinFinans and the author of this content cannot be held responsible for personal investment decisions.