Bitcoin and Ethereum: Time to light the bull market candles?
Bitcoin (BTC)’s new year recovery has been far swifter than many, nay most, market participants had anticipated.
After surging another 5% on Saturday, the benchmark cryptocurrency closed a mere few dollars short of US$21,000 for the first time since the FTX collapse crashed the market.
A significant uptick in trading volumes resulted in runaway buying momentum and double-digital growth on the BTC/USDT pair on a week-on-week basis.
The rally has cooled somewhat over the past 24 hours after hitting the US$21,000 resistance wall, but with BTC changing hands for US$20,800 and short positions getting flushed, the market is in an objectively better position than consensus had predicted.
Ethereum (ETH) is trailing pre-FTX highs more than BTC, despite Saturday’s 7% pump.
Currently changing hands at US$1,540, ETH/USDT needs to add another 8% before surpassing pre-FTX levels; certainly possible given the substantial daily gains seen lately. There is, however, a strong sell wall pitched at US$1,560 which could prove a roadblock for the bears.
After a brief hiatus, Solana (SOL) has returned to outperforming the market, encouraged by a massive 30% rally on Saturday alone. Despite cooling off today, the blockchain is around 43% higher week-on-week.
SOL’s challenge will be to capitalise on this groundswell. 2022 was marred by terrible blockchain performance, numerous hacks and exposure to FTX; tending to these issues could put the network in good stead for the year ahead.
Another embattled blockchain, Aptos, is also steaming ahead. The blockchain suffered a myriad of performance issues when it was launched in October 2022 by Facebook alumni, but in the past week, native token APT has surged over 90%, bringing the platform’s market capitalisation above US$1.02bn.
Amid a tonne of controversy, including a raid on its Bulgaria head office as part of an investigation into criminal transactional activity, crypto lender Nexo is vastly underperforming the market, having dipped around 1.5% in the past week.
Global cryptocurrency market capitalisation is at a nine-week high of US$976bn, while total volumes locked across all decentralised finance (DeFi) protocols currently stands at more than US$45bn - also a nine-week high.