Buying The Crypto Dip
By RTTNews Staff Writer | Published: 1/25/2022 9:39 AM ET
“Buying the dip” appears to have swayed investor interest back to the heavily beaten down crypto space in the past few hours. Bullish momentum appears to have forcefully returned, after a series of small and big crashes. The smart rebound from Monday’s low levels, comes ahead of the crucial monetary policy review by the Fed that begins on Tuesday.
Aggregate market capitalization increased to $1.64 trillion, in a broad-based rally across cryptocurrencies.
Market leader Bitcoin gained 9.71 percent overnight and is now trading at $36,545.47.
Rival Ethereum has surged around 11 percent and is trading at $2431.53.
The super rally helped Bitcoin reclaim the 10th spot in the global ranking of all assets published by companiesmarketcap.com. Ethereum too jumped two notches, to 34th position, from 36th position a day ago.
Bitcoin dominates 42 percent of the cryptocurrency market, followed by Ethereum which commands a 17.6 percent market share. The remaining altcoins occupy 40.4 percent of the overall cryptocurrency market.
Bitcoin and Ethereum, both increased its dominance by 0.2 percentage points resulting in a 0.4 percent dip in the market share enjoyed by the residual altcoins.
Among the top-20 cryptocurrencies, Avalanche (AVAX) and Cosmos (ATOM) have gained more than 15 percent overnight.
Ethereum (ETH), Solana (SOL), Polkadot (DOT) and Polygon (MATIC), SHIBA INU and Crypto.com coin (CRO) follow, with an uptick between 10 and 15 percent.
Bitcoin (BTC), BNB (BNB), Cardano (ADA), XRP (XRP), Terra (LUNA), Dogecoin (DOGE) and Wrapped Bitcoin (WBTC) have increased between 5 and 10 percent in the past 24 hours.
36th ranked UNUS SED LEO (LEO), the utility token that is used across the iFinex ecosystem has fallen 2.98 percent overnight and is the only crypto among the top-100 in negative territory.
In the category-wise market capitalization dominance, Smart Contracts aggregate to 27.48 percent; DeFi is at 7.78 percent; Centralized Exchanges add up to 5.24 percent; Web 3 sums up to 3 percent; Research grosses 2.86 percent; NFTs account for 2.10 percent; Memes command 1.88 percent; Scaling enjoys 1.69 percent; Decentralized Exchanges amount to 1.47 percent; Metaverse commands 1.36 percent; while Gaming follows with 1.25 percent market capitalization.
Stablecoins decreased in market dominance to 10.40 percent from 11.24 percent, a day ago as risk-taking re-emerged in crypto world.
Meanwhile the Ethereum Foundation has announced that the term ETH 2.0 would no longer be used and the terminology has been changed to the “consensus layer.” Ethereum 1.0 which refers to the proof-of-work blockchain would be hereafter known as the “execution layer.” The merger of the proof-of-work chain with the proof-of-stake chain, is scheduled tentatively for June 2022.
In regulatory news, The Financial Services Authority of Indonesia has prohibited financial institutions from almost all operations with cryptocurrencies, including using, marketing and facilitating digital assets trading.
Markets are however nervous of the regulatory stance that could be taken by the White House and the U.S. Administration in respect of cryptocurrencies. While financial stability and the risks posed by stablecoins are high on the government’s agenda, other aspects too could receive a touch of regulatory oversight.
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Article written by an RTT News Staff Writer, and posted on the RTT News.com website.
Article reposted on Markethive by Jeffrey Sloe