Cryptocurrency is stable as some traders buy down

Bitcoin has been roughly unchanged in the last 24 hours as buyers tried to reverse some of last weekend's losses. Some short-term traders are buying on the downside while others remain cautious about cryptocurrency prices over the next month.

“Despite the surprise sell-off, volatile markets have remained relatively calm. The sharp rise in BTC and ETH shows that volatility is subsiding very quickly and the structure of the period of volatility has returned to an uptrend, which in the short term does not indicate growing fear or panic, cryptocurrency firm QCP Capital said in a statement to Telegram.

Also, Three Arrows Capital, a Singapore-based hedge fund, bought more than 90,000 ETH over the weekend, worth about $400 million, according to Etherscan of portfolio data. The move comes just weeks after co-founder Su Jo "gives up" Ethereum due to the high fees for new users.

Current price

Bitcoin (BTC): $50,835, +0.81%  

Ether (ETH): $4,422, +3.21%

S&P 500: $4701, +0.32%

Gold: $1,785, +0.07%

10-year bond yields close at 1.52%

Technology-wise, the recent sell-off reflects “a loss of momentum that acts as an incentive to reduce exposure to bitcoin and cryptocurrencies in general,” said Katie Stockton, managing partner at Fairlead Strategies, a technical research firm, this week.

However, Ether's recent lead has become unusual in a market where traders are wary of riskier assets, Stockton said. “ETH's long-term upward trend has not been affected by its pullback - longer-term momentum is still up,” he wrote.

On the regulatory side, the House Services Committee's financial services committee outraged six cryptocurrency and stablecoin trades in a hearing on Wednesday. Discussions focused on the security framework, the anonymity of crypto transactions and how Congress can integrate digital assets into existing regulatory standards.

Also read: Lydia, a French fintech startup, acquired $100 million in a Series C funding round

Bitcoin in fear mode

The Bitcoin fear and greed index fell to its lowest level since late July during the weekend sell-off. Some analysts see the index as a signal to the contrary, suggesting buyers may buy BTC again if the price drops. Previous signs of “extreme fear” followed price increases in August and October.

Back narrow

Bitcoin year-over-year earnings have fallen over the past month versus the S&P 500. However, despite the recent sell-off, Bitcoin is up about 75 percent, compared to a return of about 22 percent on the S&P 500 and a return of 34 percent on the Thomson Reuters Core Commodity index. CRB this year.

Thus, according to data compiled by IntoTheBlock, Sharpe's bitcoin ratio (risk-adjusted rate of return) is comparable to last year's S&P 500 and Nasdaq.

Overview of altcoins

• Polygon's MATIC token gains amid crypto rebound: MATIC is up around 25% in the past week, compared to an 11% drop in BTC over the same period. This increase is due to increased awareness of Polygon's lower cost, efficiency and scalability. Speculation about what the company calls an "interesting announcement" scheduled for Thursday in Polygon's virtual "zk day" has also risen.

 

• Not all alternative cryptocurrencies follow ETH: While some decentralized funding tokens (DeFi) are linked to ether, meta-universal tokens like SAND from The Sandbox and MANA from Decentraland are less correlated with ether, according to a statistical study by Coin Metrics. “Some of the tokens on Ethereum today seem to be converging on a narrative that is less tied to ETH itself, demonstrating the potential benefits of diversification,” Coin Metrics wrote.

 

• Inside EIP 4488: Last week, Ethereum co-founder Vitalik Buterin unveiled a proposal to upgrade Ethereum (EIP) 4488, an upgrade that could lower transaction fees for Ethereum aggregate packages such as Arbitrum, Optimism, and zkSync. The proposal outlines immediate steps to be taken to reduce gas costs without compromising safety and a roadmap for progress after the "merger".