Dear Teroxx Community,
This week we saw a digital asset market that drove further correction and consolidation in most assets.
Weekly overview
As usual, we are also providing detailed videos for those who want to delve deeper into the subject.
Latest crypto news
Bitcoin’s (BTC) market share slipped below 50% this week for the first time since January 2018, a clear signal that crypto investors currently prefer to speculate with altcoins.
Accordingly, the “Bitcoin Dominance Index”, i.e. Bitcoin’s market share measured against the entire crypto market, reached a low of 49.35% on Thursday, as CoinMarketCap shows. In contrast, at the beginning of 2021, the market dominance was still at 70.68%.
As of Thursday, meanwhile, “altcoin market leader” Ethereum (ETH) has a market share of 15%, up 4 percentage points since the start of 2021.
Influential American crypto exchange Coinbase is listing the controversial stablecoin Tether (USDT) on its offshoot for professional investors.
According to a related announcement on Thursday, Coinbase Pro is already accepting deposits in the form of USDT ahead of the scheduled start of trading on Monday. However, trading of the market-leading stablecoin will only start as soon as sufficient liquidity has been ensured, i.e. as soon as enough Tether funds have been deposited on the platform. Coinbase emphasizes in this context that only USDT in the form of ERC-20 are accepted. Thus, only tethers based on the Ethereum blockchain will be accepted.
“As soon as a sufficient amount of USDT has been deposited on the platform, trading starts for the currency pairs BTC-USDT, ETH-USDT, USDT-EUR, USDT-GBP, USDT-USD and USDT-USDC. The associated order books are then released in three stages.”
“People are starting to realize that Bitcoin is better than national currencies,” according to Tim Draper. Investment guru Tim Draper believes that Bitcoin (BTC) has the potential to change society and the economy for good.
Draper made the relevant remarks on Thursday at the Collision Web Summit online conference. Among other things, he believes that the market-leading cryptocurrency is capable of creating an actual equilibrium between nations, because the governments of countries would then no longer be able to exert influence via monetary policy, and would consequently have to make all the more effort with their populations and their assets in the form of Bitcoin in order to remain relevant.
Technical term of the week
Consolidation: A phase in which an asset cannot make any new positive leaps in terms of price, but the fundamental views are strengthened. If market momentum is positive, this is often followed by a major price breakout with increased volatility.
Crypto Market
Strong support formed around ~$48,000 and the market was able to exit these levels with large moves and position itself well above the $50,000 mark. Some altcoins were already able to completely leave the dip behind. The market capitalization fell by ~2-4% on a weekly basis. Currently, the market looks consolidated and due to the falling bitcoin market dominance, altcoins are moving into the foreground of the volatile price movements.
Bullish Outlook: If the market maintains the positive moves, a bounceback to
~$57,500 is possible. The biggest hurdle currently remains the $60,000 level.
Bearish Outlook: A loss of support at ~$50,000 and a sell-off to ~$48,000 could turn the market negative in the long term.
