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crypto this week: Crypto week at a glance: Bitcoin’s dominance rises; Swiss McD accepts crypto

The global crypto market has recovered a bit as compared to the past week. Bitcoin has failed to hold above $20,000 level the previous week due to lack of buying activity but has traded above its psychological support this week in line with equities.

It seems like the market participants are on their risk appetite to start a new quarter. Bitcoin has traded sideways most of the week as investors return to more macroeconomic cautiousness.

Even though Bitcoin successfully traded above $20,000, it struggled to move above it. Its dominance in the market, however, increased to 41 per cent from 39 per cent on September 10, 2022.

This indicates that the market participants are choosing Bitcoin over other assets for its comparatively stable nature.The whale accumulation and the US dollar index rising to a 20-year high are the reasons for BTC’s growth in the past few days.

The second largest cryptocurrency, Ethereum, has been changing hands above the $1,300 level. Ethereum has been experiencing the heat of macroeconomic factors post the Merge. If Ethereum can close the week by trading above the $1,400 level, we might see an upward trend in the coming week.

On Friday, Bitcoin dropped below the $20,000 level as markets are preparing for the release of the latest US non-farm payroll report. Bitcoin slipped as bearish sentiment returned to markets. Ethereum continued to consolidate ahead of the release.

While other major altcoins were mixed, some traded in green while others in red. The volatility in the crypto market has increased in recent weeks as the market participants reacted to the rising inflation and fluctuations in the US dollar by moving away from riskier assets.

In an interesting turn of events, Fidelity Investments has been the flagbearer of Ethereum investment among institutional players. The leading asset management company has collected $5 million and is exclusively open to qualified investors.

The European Union is soon coming up with its historic crypto law after two rigorous years. According to the Chair of the Economic and Monetary Affairs Committee, the legislation should be passed on its first reading in parliament. This move will open a new road to innovation.

McDonald’s has started accepting Bitcoin and Tether in Lugano, Switzerland. The news comes as the crypto community has rallied for years for the restaurant company to accept crypto such as Dogecoin at all locations.

Coming to the price action, among the top 100 cryptos by market cap, here are the best and worst-performing cryptos over the past week:

Top 5 gainers for the week (as of 10.00 hours IST on October 9, 2022):

1. Casper (CSPR): 19% up

2. Maker (MKR): 18% up

3. Convex Finance (CVX): 15% up

4. Ethereum Name Service (ENS): 14% up

5. Elrond (EGLD): 13% up

Top 5 crypto losers this week (as of 10.00 hours IST on October 9, 2022):

1. Reserve Rights (RSH): 17% down

2. Teera Classic (LUNC): 13% down

3. Chiliz (CHZ): 12% down

4. Algorand (ALGO): 10% down

5. Helium (HNT): 9% down

Note: The study includes only top-100 cryptocurrencies in terms of market capitalization listed on the source of data, that is, Coinmarketcap.

(The author Edul Patel is CEO, and Co-founder, Mudrex)

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)


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