This Blockchain Bucked the Bearish Crypto Trend as the markets turned down on People Day – Here’s How to Survive?
On this indigenous people’s day, the market capitalization of all cryptocurrencies is down by 1.42%, standing at $931 billion. After largely holding steady over the weekend, Bitcoin fell below $20k, and Ethereum is battling to maintain a price over $1,300. The good news is that trading volume is much up this Monday, with ETHUSD’s volume up 51% and BTCUSD’s volume up 45% over the course of a day. Let’s take a look at any recent news that may have an impact on prices.
Key Notes:
- This Indigenous Peoples Day, cryptocurrency markets are trending slightly downward.
- Bitcoin has fallen below the $20k mark, while Ethereum is having trouble holding support around the $1,300 level.
- Reports of North Korean hackers amassing billions of dollars’ worth of cryptocurrency to invest in the development of nuclear weapons unnerve the rest of the world.
- The community has not stopped praising CZ for taking prompt measures in response to the BSC Bridge attack last week and for averting the disaster.
- Bitcoin’s mining difficulty reaches 35.61 trillion, despite sluggish trading, as Ethereum adds 135,780 new addresses.
- Even though prices are still low, the market seems to have plenty of momentum, and a positive run may occur later in this week.
General Crypto Market Update
Several news stories today are negative, just as a CNET investigation claiming North Korea has infiltrated the cryptocurrency market to the point where it has quietly become a superpower, stealing billions in crypto assets and using the proceeds to fund its nuclear weapons projects.
The Lazarus Group, one of the most well-known hacking organizations connected to the North Korean government, stole almost $600 million in cryptocurrency from Axie Infinity in addition to $200 million in assets in 2020 and 2021.
Using their strong technical skills, North Korean hackers stealthily collected cryptocurrency worth billions of dollars through shady methods.
This demonstrates that bitcoin will continue to be the wild west as long as the sector pushes innovation at an astounding rate. There will always be new zero-day vulnerabilities that could endanger the financial stability of a project.
A report from Coindesk claims the consequences of the Binance Smart Chain bridge attack may have been significantly worse had it been that the validators didn’t move quickly. In fact, a lot of people in the community appreciate CZ’s rapid response because it stopped hackers from taking the cash off-chain.
While some feel that having such centralized control over a blockchain goes against the principles of the cryptocurrency business, CZ demonstrates how a careful balance might stop terrible effects from largely preventable faults.
The cryptocurrency fear and greed index stands at 22, which indicates extreme fear but is still higher than the 20 points it reached last week. The previous month’s market reached 28 points, going from Extreme Fear to the Fear level, continuing a trend of several months in a row where the market has been in a fear state.
Even though cryptocurrency prices aren’t performing so well, the growing trading volume indicates that the market is gaining strength and could experience a bullish run by next week.
Despite the sluggish trading, Santiment reports that there were 135,780 new Ethereum addresses created on Saturday, and BTC.com reports that the mining difficulty for Bitcoin hit an all-time high of 35.61 trillion.
Another encouraging factor for this week’s price movement is how well prices maintain support. The stock market’s poor performance is the main cause of today’s underperformance of Bitcoin and Ethereum.
As a result of the S&P 500, NASDAQ, and Dow Jones opening lower, Bitcoin fell along with the rest of the cryptocurrency markets. The stock market has continued to perform poorly, despite the Fed’s suggestion that they may loosen up on their monetary policy to allow the economy to catch up.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any projects.
Image Source: mohdazrin/123RF // Image Effects by Colorcinch
