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The market cap of the cryptocurrency market shrank by more than $ 30 billion from Friday to Sunday. At the same time, Bitcoin continued its downtrend by dropping below the $ 22,300 level. What to expect from the cryptocurrency markets this week after this weekend’s bankruptcy? response elements.
Decline in global market capitalization
The market cap of the cryptocurrency markets fell 9.6% over the weekend. This is the biggest loss in July. In summary, 30 billion dollars have been withdrawn from cryptocurrency exchanges.
While global cryptocurrency market capitalization peaked at nearly $ 3 trillion in November 2021, today it’s the same as it was in February of that year.
On June 13, the cryptocurrency market cap fell below $ 1 trillion. However, despite the losses suffered this weekend, the latest since July 16 is above this level.
Intense weekend for bitcoin
Last week, BTC debunked the more pessimistic forecasts. The price of bitcoin really survived the rise Increase of 17%. Monday to Wednesday. It was safe to assume that after breaking through the ascending compression triangle pattern, BTC would spend another week in the green.
However, since July 20, the price of BTC has dropped 12% and is now trying to climb above $ 22,000. The $ 21,600 level will be one to watch this week. Violation of the latter can result in a drop to $ 20,000.
Altcoin in decline
As for altcoins, the bears took over buyers this weekend despite the relative boom seen this week.
Since July 18, Ethereum has failed to close above the $ 1,600 pivot level. However, the price of ETH increased by 53% between July 13 and July 19. Consequently, the now outdated stabilization phase is not surprising.
Furthermore, the acceleration of the Ethereum blockchain delivery plan towards Proof-of-Stake (PoS) consensus is accelerated. The near future of the course is of little concern.
Meanwhile, Polygon (MATIC) shares have lost nearly 10% in the past week. Elsewhere, prices for Polkadot (DOT), Tron (TRX), Solana (SOL), Tezos (XTZ) and Filecoin (FIL) remained in the red for the week, losing nearly 5%.
However, some altcoins emerged last week. Cardano (ADA) consolidates its support at $ 0.50 after posting a modest but sure 4% gain in the past 7 days. For their part, the prices of Uniswap (UNI) and Monero (XMR) increased by 6%.
Finally, pleasant surprises from Ethereum Classic (+ 13.53%), ApeCoin (+ 10%) and EOS (+ 12%), which broke the trend of the cryptocurrency market in green during the week.
Consultation of the new Fed begins today
A new meeting of the FOMC (Federal Open Market Committee) of the US Federal Reserve will be held from 26 to 27 July. As usual, it would be advisable to pay close attention to the announcements that will be made at the end of this meeting.
The institute intends to continue its efforts in fighting the inflation that has hit the United States. Many analysts expect aggressive action to be taken. Therefore, a rate hike scenario of 75-100bps seems very likely.
If confirmed, the cryptocurrency markets could suffer in the medium term. However, investors aware of the institution’s intentions appear to be more cautious about its statements. Therefore, we can expect less impact on the markets than in May last year.
Either way, this new Fed meeting can be expected to increase volatility in the cryptocurrency markets. Additionally, the total market cap of the cryptocurrency markets may continue to fluctuate after the FOMC announcement.