The cryptocurrency market digest (BTC, ETH, LUNA). Overview for 23.05.2022

May 23, 2022

Article By RoboForex.com

The BTC has been growing for three days in a row, and on Monday is consolidating near $30,445. Meanwhile, since the beginning of the year, it has already lost 52% and 58.2% of the high of 28 March. For the past 8 weeks, the BTC has been mostly losing.

Here, we should remind you of the serious correlation that exists between the crypto market and the US stock market. Between the S&P 500, Nasdaq and the BTC there is a definite correlation. The market remains turbulent due to the toughening of the monetary policy by the Federal Reserve system. The Fed is serious about beating inflation and uses all possible mechanisms to reach this goal.

By the way, that past week became the seventh negative one in a row for the S&P 500. This is the longest negative phase for the index since 2001.

Capitalisation of the crypto market is now estimated as $1.288 trillion. The BTC makes up for 44.5% of it and the ETH – 19%.

The tech picture of the BTC looks as follows. The protection area remains between $29,000 USD and $30,000, and the past week demonstrated the stability of the area. However, while the BTC is close to it, it can still drop to $20,000. The demand for risky assets is quite unlikely to return any time soon. However, if the miracle does happen, and we see energetic buys in the BTC, it will need to secure above $32,700 to reverse the trend.

Bitcoin chart online

Top 10: all use the pause

Over these past 24 hours, out of the Top 10 cryptocurrencies, capitalisation increased most noticeably in the ETH (+3.07%), ADA (+3.18%), and SOL (+4.15%). DOGE (+1.96%), BNB (+2.05%), and BTC (+2.08%) are somewhat dragging behind. Investors have calmed down a bit, the market has accounted for the possible steps that the Fed might take against inflation, and decided to take a rest.

Ethereum: switching to Proof-of-Stake

In June already, Ethereum will change the mechanism of its main test public network Ropsten to Proof-of-Stake. This is an important step toward implementing this mechanism in the whole Ethereum network. Ropsten is expected to introduce it in two steps. The first one will be made on 30 May and the second one – on 8 June. This is good fundamental news for the ETH.

Ethereum chart online

Terra: new checks

As was thought, the Terra story is just beginning. Now the prosecution services of South Korea are going to check the company for evidence of a financial pyramid. After several investors announced they were going to sue the company for the recent decline in the token price, this news does not look surprising. Specifically, the prosecutor is interested in whether the Anchor Protocol that promises the owners of TerraUSD 20% of annual profit should be charged for the criminal offence.

Article By RoboForex.com

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