The Second Largest Leading Cryptocurrency Market As Bitcoin Gears Up For Interesting Moves Next Week
At the end of the week, the cryptocurrency market returned to green values and the prices of the largest assets in the market have shown positive dynamics with even more potential next week.
Ethereum leads the top 10 in the market
Following the release of the Medium article by Arthur Hayes, where the creator of the derivatives trading platform Bitmex predicted that Ethereum would hit $5,000, the price of the second largest cryptocurrency in the market reached a local high of $1,724 with a price increase of about 10% in the last 24 days. hours.
Hayes offered different scenarios in which the price of Ether could reach new highs. The main reasons behind the new rally are the successful implementation of the Merge update and the reversal of the Fed’s hard line.
The aforementioned reasons are most likely to cause a rally in any type of digital currency, considering the risky and volatile nature of this type of asset. The Fed’s actions have directly affected the digital asset market. That took a tremendous hit after institutional investors began to flock out of the industry due to falling demand for risk exposure.
Bitcoin looks promising
This week’s market was the real test for Bitcoin, as the top cryptocurrency faced a seven-day losing streak and returned below the $23,000 price threshold, which could have been a sign of an upcoming drop. Fortunately, Bitcoin bulls withstood the increase in selling pressure and left BTC in a local uptrend.
This week, Coinbase announced a partnership with Blackrock and forged a deal to give the fund’s clients access to cryptocurrencies, which will no doubt bring millions, if not billions, of trading volume to the digital asset market.
Following the news release, the value of Coinbase shares soared by nearly 70%, causing a halt in trading due to abnormal volatility. Bitcoin and the cryptocurrency market also benefited from the news, as the market saw high trading volume and purchasing power in Bitcoin and other cryptocurrencies.
Potential risk factor for the market
The only risk factor that we can see now is the recovery of the US dollar against the foreign currency bracket, as the DXY index reached the local support level of the 50 day moving average.
The US dollar rebound would not be good for assets like Bitcoin or gold as investors invest more in safer options instead of opting for assets denominated against the US dollar when the US currency shows strength in the market.
At press time, DXY is trading around 106.6, while Bitcoin is changing hands at the $23,000 level.