Bitcoin resists equity market pressure
Categories: Bitcoin Crypto News
Bitcoin resistsequity market pressure
Bitcoin declined 0.4% over the past week,ending at around $19,900 without experiencing any significant movement duringthat time. For now, we can only say that the crypto market is wagering on thestrengthening of the dollar, and to a markedly lesser extent than othermarkets. Ethereum added 5.9% to $1570, while other leading altcoins from thetop ten showed mixed dynamics: from a decline of 1.3% (BNB) to a growth of 13% (Cardano).
Total cryptomarket capitalisation, according to CoinMarketCap, rose 2.5% over theweek to $976bn. The cryptocurrency Fear & Greed Index lost 8 points overthe week to 20, returning to "extreme fear" status.
Bitcoinstood aloof from key market movements last week,moving on a short leash around $20K. Meanwhile, tectonic shifts were takingplace in the markets as the dollar continued to renew multi-year highs andstock markets returned to a sell-off.
Cardanorose sharply atthe end of the week on the back of the news. IOHK, the company behind the Cardanoproject, has set a date for Vasil's update - the largest and most importanthard fork in the project's history will take place on September 22.
According toanalytics service Tip Ranks, HODLers are refusing to sell the cryptocurrency.62% of wallets hold bitcoins for more than one year. 32% ofaddresses control BTC for 1 to 12 months, and only 6% ofinvestors hold cryptocurrency for less than 30 days. At the same time, bothprofitable and unprofitable addresses have a 48% share.
Bitcoinminers' revenuesin August amounted to $657 million and increased for the first time sinceMarch. The growth in revenues was helped by the growth of the firstcryptocurrency's network hash rate.
Despite thecrisis, investor confidence in cryptocurrencies increased slightly over thequarter. 65% of retail investors and 70% of institutional investors trustdigital assets, according to a survey by cryptocurrency exchange Bitstamp. Cryptocurrenciesare helped by the aura that, in the long term, they are more promising thanstocks and other risky assets, as they are at an early stage of adoption andstill undervalued by the market.
Ethereumco-founder Vitalik Buterin called the current bear cycle expected. In his view,Terra's collapse and market decline are a boon for the crypto industry, as theyhelp identify problems and unsustainable business models well. With the risingcapitalisation of the crypto market, the DeFi sector could pose long-term risksto financial stability, according to the US Federal Reserve.