Cryptocurrency Market Review

Cryptocurrency Market Review

cryptocurrency market has been actively correcting downwards this week. A sharp drop in prices occurred on Friday without obvious fundamental reasons, so experts attribute the loss of positions of digital instruments to the speculative activities of the "whales." BTC is currently trading around 21800.00 (-11.5%), ETH is at 1730.00 (-14.8%), USDT is around 1.0000 (-0.02%), USDC is at 0.9999 (+0.01%), while BNB is around 280.00 (-12.6%). The total market capitalization has decreased to 1.048T dollars, and the share of BTC in it was 40.01%.
Two opposite trends influenced the digital asset market. The pressure on quotes was exerted by the publication
of the minutes of the last meeting of the Federal Open Market Committee of the US Federal Reserve (FOMC)
but a serious drop in prices until Friday was hindered by the expectation of an early transition of the Ethereum network to the Proof-of-Stake (PoS) proof algorithm, which supported investor interest in the entire crypto sphere. The minutes of the meeting of the American regulator, released on Wednesday, confirmed that the increase in interest rates would continue until inflation shows serious signs
of slowing down and moving towards the target level of 2.0%, so there is no break in the monetary policy tightening cycle expected, and this will continue to support the US currency against alternative assets. So far, the predictions of the head of Galaxy Digital, Michael Novogratz, who previously stated that the "hawkish" rhetoric of the financial authorities would put pressure on digital assets, and
the BTC rate is unlikely to exceed 30000.00 by the end
of the year, and most likely will remain in the corridor of 20000.00-30000.00.

From the news of the cryptocurrency community, we can note the problems of the stablecoin HUSD, previously presented by Huobi Global and Paxos as a safe and reliable asset that combines the stability of the US dollar and the efficiency of blockchain technology. The coin lost its peg to the dollar and dropped to 0.890 as FTX removed it from its stablecoin basket. Singapore-based cryptocurrency lending service Hodinaut announced the need to reduce financial costs due to a police investigation. 80% of the staff has already been laid off.

We also note several European Central Bank (ECB) documents published this week. Thus, regulator officials reported that the introduction of state digital currencies is the only solution that guarantees the stable state of the current monetary system, as physical money loses its economic attractiveness and cryptocurrencies of large digital platforms continue to fill the market. Such comments prepare the European community for the imminent introduction of the digital euro, which should provide a serious alternative to private cryptocurrencies.
Next week, quotes of most cryptocurrencies may consolidate or continue to decline.

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