Tag: Cryptomarket

Bitcoin, Ether and Other Top Cryptos See Minor Market Recovery

by Blockchain News

The crypto market has indicated some signs of little recovery with major crypto coins trading slightly higher on Monday. 

The global cryptocurrency market cap is currently trading slightly higher at $1.31 trillion, an increase of 3% in the last 24 hours, according to CoinMarketCap. The global crypto market cap shrunk to $1.28 trillion yesterday, but for the last 24 hours, a few top cryptos have witnessed a mild recovery from recent lows.

The top 10 cryptocurrencies on CoinMarketCap have seen some changes amid the ongoing market crash. While Dogecoin has descended to number 10, Terra (Luna) has disappeared from the top crypto charts as major exchanges have halted the trading of Terra and the sister token.

Bitcoin has increased its price slightly to $29,517.75 as of 10.05 AM East African time. On Thursday last week, Bitcoin plunged as low as $25,401.29, marking the first time the flagship cryptocurrency sunk below the $26,000 level since December 26, 2020.

In the last 24 hours, Ethereum rose its value by 0.17% and is currently trading at $2004.67. Last week on Thursday, Ether, the second-biggest digital currency, fell as low as $1,704.05 per coin. It was the first time the token plunged below the $2,000 mark since June 2021.

Meanwhile, other major cryptocurrencies have also shown some signs of recovery. For the last 24 hours, Binance (BNB) rose its price by 0.16% to $293.10; Solana (SOL) increased its price by 5.24% to $51.64, while Cardano (ADA) also rose its value by 5.93% and now trades at $0.5607 per coin.

Popular meme cryptocurrency Dogecoin is currently ranked 10th in terms of market capitalization. Polkadot (DOT) and Avalanche (AVAX) are currently ranked 11th and 12th on CoinMarketCap.

Even as the market appears to stabilize after the market crash, extreme fear sentiment persists as indicated by the crypto Fear & Greed Index.

Cryptocurrencies were adversely affected last week amid the explosive failure of Terra stablecoin, rising inflation rates, geopolitical unrest, and deepening investor fears about the economic impact of aggressive central bank tightening.

However, market experts are suggesting that the crypto tokens are set to stabilize after last week’s brutal selloff, but warn investors to remain vigilant of upcoming key economic data.

Caroline Bowler, the CEO of Australia’s largest digital asset exchange BTC Markets, yesterday gave her thoughts regarding the current market status. She stated: “We’ve definitely seen a bit of a recovery in [Bitcoin’s] price. I would expect consolidation around the current price, meaning that there may be some movement up or down … of a few thousand … but I don’t anticipate large swings based on what we can see from the market.”

Jun Bei Liu, Tribeca Investment Partners portfolio manager, also agreed that crypto prices will recover. She noted: “It’ll have a bounce back. Last week it clearly got tested with its ability to peg to the US dollar … this week, people will feel better about buying risk and more volatile [assets].”

David Bassanese, the BetaShares chief economist, also expects some recovery because things have been deeply oversold in the short run. He elaborated: “As ownership of crypto has broadened to retail investors, the fear and greed, the passions that drive equity markets are driving crypto markets.”

Image source: Shutterstock

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These tokens saw the biggest trading volume pumps last week. How could traders benefit?

by Cointelegraph

An uptick in trading volume is one of the key components of a digital asset’s healthy market outlook. It indicates both robust liquidity and a surge in fellow traders’ enthusiasm for the token. The relationship between the asset’s price and trading volume is a nuanced one: Volume spikes often trail strong rallies as more and more traders hop on the bandwagon in the hopes of a ride to the moon.

Yet, in some cases, it is surging trading volume that leads to price appreciation. In such a scenario, getting alerted to anomalous trading activity around a token can help crypto investors to spot the early signs of an impending rally. Regardless of whether the trading volume spikes precede or follow the price action, the assets that exhibit unusual behavior on this key metric merit a closer look.

The five assets featured below showed the greatest week-to-week increases in trading volume last week and were featured in the Unusual Trading Volume section of Cointelegraph Markets Pro dashboard. In three cases out of five, anomalous upticks in trading volume foreshadowed major price increases.

FRONT: Trading volume explosion following an exchange listing

FRONT, a token representing DeFi aggregator Frontier, topped the chart of last week’s trading volume movers chart with a 3041% increase on the heels of its listing on the Korean crypto exchange Bithumb. As evident in the graph, the Jan. 26 listing announcement had first triggered a price spike as the coin’s value almost doubled, soaring from $0.41 to $0.78 in less than 6 hours. FRONT’s trading volume followed the price dynamics closely, peaking the day after the announcement.

QKC: A minor price pump anticipates a price peak

QKC price (blue) vs. trading volume (purple), Jan. 22–29. Source: TradingView/The TIE

QuarkChain (QKC) saw two dramatic trading volume increases last week, the greater one (+2862%) coming last and following the coin’s weekly price high. In a curious plot twist, there was also another, rather short-lived trading volume spike that came on Jan. 25 and preceded the price rally by roughly 18 hours.

WAVES: Price wave first, trading volume wave second

WAVES price (blue) vs. trading volume (purple), Jan. 22–29. Source: TradingView/The TIE

At the height of its trading volume momentum that came on Jan. 27, WAVES registered an 860% increase compared to the week before. The volume pump followed a sharp price increase as the token shot up from $8.39 to $11.38 in about 5 hours. Trader activity remained high even as the price began to correct.

LOOM: Short trading volume pump anticipates price peak

LOOM price (blue) vs. trading volume (purple), Jan. 22–29. Source: TradingView/The TIE

Loom Network’s (LOOM) trading volume vs. price chart looks similar to that of QKC above: A sudden and short spike in the trading volume coming several hours before the week’s peak price. What caused LOOM’s Jan. 25 trading volume explosion from around $5 million to upwards of $34 million (a 520% increase compared to the previous week) is anyone’s guess. What is certain is that over the next day LOOM’s price added 14%, reaching the weekly high at $0.062.

OXY: Price and trading volume rise together

OXY price (blue) vs. trading volume (purple), Jan. 22–29. Source: TradingView/The TIE

In the case of Oxygen (OXY), starting from the Jan. 24 afternoon, both the price and the trading volume lines embarked on upside trajectories, moving up beside each other. A peak trading volume of around $3.8 million, registered on Jan. 26, marked a 421% week-to-week increase. A weekly price peak near $0.49 followed in 12 hours.

Comprehensive crypto data intelligence

In addition to the raw outlier data present in a dedicated section of the CT Markets Pro website, trading volume is also one of the key ingredients of the VORTECS™ Score, an algorithmic indicator comparing historic and current market conditions around digital assets to identify historically bullish, bearish, or neutral outlook.

CT Markets Pro’s Unusual Trading Volume panel, Feb. 3. Source: Cointelegraph Markets Pro

Any single metric that shapes an asset’s market outlook can be uninformative on its own, yet it becomes much more useful when contextualized within a host of other variables that the VORTECS™ algorithm considers, such as price movement, social sentiment and tweet volume.

Cointelegraph is a publisher of financial information, not an investment adviser. We do not provide personalized or individualized investment advice. Cryptocurrencies are volatile investments and carry significant risk including the risk of permanent and total loss. Past performance is not indicative of future results. Figures and charts are correct at the time of writing or as otherwise specified. Live-tested strategies are not recommendations. Consult your financial advisor before making financial decisions.

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Social platform behind ‘retail short squeeze’ launches crypto trading

by Cointelegraph

Investor-focused social media platform Stocktwits, which gained popularity during last year’s ‘retail short squeeze’ frenzy involving GameStop and AMCTheaters, rolled out its own crypto trading services on Thursday.

Stocktwits has partnered with FTX.US to carry out its crypto trading services and is set to launch US equity trading next quarter. The firm further looks to expand its trading services portfolio by offering crypto derivatives trading and other asset classes in the coming months.

Stocktwits boasts of 6 million registered users and sees 5 million active users monthly. The new crypto trading option would allow users to trade directly from their profile and allow them to showcase their portfolio as well.

The social network platform played a key role along with the subreddit r/wallstreetbets to short squeeze meme stocks in February 2021, leading to billions of dollars in losses for hedge funds who bought millions of short positions against these stocks. The crypto community offered great support during the retail saga and asked several companies associated with it to integrate crypto as a protest against centralized bullying.

Related: New decentralized crypto exchange is inspired by r/Wallstreetbets

The social platform until now was primarily focused on discussions between investors and traders along with other data tools. The CEO of the platform Rishi Khanna acknowledged the growing prominence of crypto discussion on the network and said that the “community and data have served as a strong on-ramp into the platform.”

The launch of the live crypto trading feature would help Stocktwits join the growing list of companies from the short squeeze saga that have integrated crypto-related services. AMC integrated crypto payments for its online booking services while GameStop is entering NFTs and also plans to build new crypto partnerships.