The first week of 2022 is off to a dramatic start for bitcoin and the rest of the cryptocurrency market, with total capitalization down nearly $240 billion in seven days. It comes as the US Federal Reserve revealed plans to begin shrinking its balance sheet, which could begin within the next several months.
It is safe to say that the price of bitcoin has seen better days. BTC is currently trading at around $41,400, down about 12.5 percent from this time last week. For most of the past seven days, the cryptocurrency was biting sideways, but then things took a turn for the worse on January 6, when the price dropped to $46K. The bears are not done yet, and the price is correcting lower today, falling below $41K.
According to the Bitcoin Fear and Greed Index, market sentiment is currently in a state of extreme fear, hitting its lowest level since July last year. This is clearly reflected on the charts as the vast majority of cryptocurrencies in the top 20 are in the red, except Chainlink (25.8%) and ATOM (up 43%). Ethereum is up 15.5%, BNB – 14.1%, Solana – 20.8%, ADA – 10.8%, DOT – 9.2%, and so forth.
Elsewhere in the cryptocurrency market, things are looking more promising and optimistic. The non-fungible token (NFT) space is growing rapidly with the recent announcement from Samsung. The tech behemoth will enter the metaverse through the popular Project Decentraland (MANA). OpenSea — the largest NFT marketplace — closed another funding round that brought its total valuation to $13 billion, clearly demonstrating investor appetite.
In any case, it is very interesting to see how things shape up in the coming days and in 2022 as a whole. Will we see a profound recovery, or will the industry grow even beyond 2021? Only time will tell.
market data
Market Cap: $2,072B | 24h Volume: 180b | BTC dominance: 39.9%
B T c: $41,320 (-12.5%%) | ETH: $3,129 (-15.5%) | ADA: $1.21 (-10.8%)
This Week’s Crypto Headlines You Can’t Miss
The third largest bitcoin whale swallowed another $24M worth of BTC during the plunge. The third largest bitcoin address has bought another 551 BTC while the price was declining at an average point of $45,219. This week alone, the entity has deposited over 1,000 BTC.
Samsung delved deeper into the metaverse using Decentraland (MANA) abilities. Korean-based tech giant, Samsung has introduced a new feature that will allow its customers to participate in live concerts virtually through the Metaverse. In doing so, the company has chosen Decentraland as its location.
Extreme Fear: The Bitcoin Fear and Greed Index is at its lowest level since July 2021. The Bitcoin Fear and Greed Index, which measures overall market sentiment aggregating various data points, is at its lowest since July 2021. According to this, the current emotion is extreme fear.
Airbnb CEO Doubles Down With Adding Crypto Payments In 2022. The CEO of Airbnb took it to Twitter to explore any potential features its customers want to launch in 2022. Most of the respondents said cryptocurrencies, and high-ranking executives teased a possible integration.
OpenSea’s valuation increased to $13.3 billion after $300 million in Series C funding. OpenSea – the leading non-fungible token (NFTs) marketplace – has raised $300 million in a funding round led by Paradigm and Coatue. This brings the company’s total valuation to $13.3 billion.
Bored Ape Yacht Club surpassed $1 billion in total business volume on OpenSE. One of the most popular NFT collectibles – Bored Ape Yacht Club – managed to surpass $1 billion in total trading volume on OpenSE this week. The current floor price sits at 68 ETH, which is higher than the floor price of the famous crypto punk.
Chart
This week we have chart analysis for Ethereum, Binance Coin, Cardano, Solana and Luna – click here for full price analysis.
PrimeXBT Special Offer: Use this link and enter code POTATO50 to get 25% off on trading fees.
Disclaimer: The information found on Cryptopotato is that of the cited authors. It does not represent the opinion of Cryptopotato whether to buy, sell or hold any investment. You are advised to do your own research before taking any investment decision. Use the information provided at your own risk. See disclaimer for more details.
Cryptocurrency charts by TradingView.