Crypto markets roar back — is this the bottom?
Crypto markets are roaring back — with the total crypto market cap rising over 30% to $1.9T in the past two weeks.
What’s the big deal? The crypto market cap is still down over 30% since peaking at $2.9T in November. But in the past 7-days:
- Ethereum ($ETH) is up 18% and Bitcoin is up 15%.
- Other top 10 coins: XRP ($XRP) is up 31%, Polkadot ($DOT) is up 21% and Solana ($SOL) is up 26%.
A strong US jobs report released last Friday may have staged a recovery for crypto assets — or bouncing back from recent months’ selling frenzy…
The relative strength index (RSI) on Bitcoin reached an oversold level of 20 in January (below 30 signals being oversold, 70 signals being overbought)
Up only? Never, when it comes to crypto. But when it starts moving, it tends to make impressive moves. Last April saw weeks of crypto only moving up — shooting up from $2K to $4K over a month — before crashing 50% in the following weeks.
No direction: Economic policies aren’t accommodating a bull market and markets are struggling to find a direction — which could put us in a sideways market…
- What could keep us steady: Expected interest rate rise in March — which could be priced into stocks and crypto already.
- What could send us lower: Worse-than-expected inflation data — coming out this Thursday — or a more aggressive hike in interest rates.
Good timing: Last week, Grayscale launched their Grayscale Future of Finance ETF (NYSE:GFOF) — which invests in companies intersecting finance and digital assets.
- Top holdings: PayPal, Coinbase, Silvergate Capital, Robinhood
- Unlike ETFs launched in 2021, this one launched when growth stocks are at 52-week lows.