Skip to content

Ethereum, Solana, Polkadot lead the cryptocurrency price rally.

Ethereum, Solana, Polkadot lead the cryptocurrency price rally.

Yesterday; the total cryptocurrency market capitalization was about to drop below $2 trillion for the first time since September.

It has gained more than 4% in the last 24 hours to avoid this drop; thanks to Ethereal (+8%); Sunshine (8%); Binance Coin and Polkadot (both up 11%). The other parts of the top 10 are also doing well. Bitcoin (4%); Cardano (7%); XRP (6%) and Earth (10%) all recorded earnings.

So is it suddenly a bull market again; as FTX founder and CEO Sam Bankman-Fried tweeted?

Ethereum is down 33% from its all-time high of $4878 hit two months ago; nothing says it can’t get back there; the market remains uncertain.

But markets around the world are changing. The US Federal Reserve plans to raise interest rates three times this year to curb inflation. The result; according to the co-founder of Delphi Digital; Kevin Kelly; there will be a decrease in the amount of money available to borrow and spend. ” When liquidity is abundant and expanding; the $BTC and crypto assets tend to outperform; when liquidity is tight; they are in trouble“; he declared.

It also contributed to volatility in US stock markets. The S&P 500; which posted returns of 26.9% last year; is down just over 1% to start 2022. The NASDAQ is down more than 3% this year after rising 21.4% in 2021. to the Dow Jones; has moved sideways since the beginning of the year after posting gains of 18.7% in 2021.

Why do we mention this; given that these arejournaltimepletely different markets? Well; because they really aren’t. Stocks and cryptocurrencies are considered risky assets due to their volatility. In addition; they have behaved in a similar way lately. According to a recent report from crypto asset data firm Kaiko; the correlation between bitcoin and US stock indices is the highest since July 2020. Meanwhile; BTC’s correlation with gold is less than 0; meaning that it tends to move in the opposite direction to the inflation hedge.

In turn; Ethereum has a coefficient of 0.72 with Bitcoin in the last year; according to Crypto surveillance data where 1 corresponds to a synchronous movement.

So crypto as a whole is on the rise. For today. Come back tomorrow to see how things are.

#Ethereum #Solana #Polkadot #lead #cryptocurrency #price #rally Copr.