The world’s most popular cryptocurrency has been done by 4.19% in the last seven days but remains within the range of $40,000 – $43,000. Bitcoin has been languishing since the beginning of the new year. Investors are worried about dicey macroeconomic conditions. And supply chain issues continue with the ongoing COVID-19 pandemic, which has been fueled further by the omicron variant.
Moreover, the Fed Reserve’s intentions of raising interest rates, rising inflation, and decline in technology markets make things look more gloomy. A few days ago, the market had been hopeful as BTC was trading higher as it nearly touched the $44,000 mark. But the bears came in and pushed the price lower.
Greg King, the Founder and CEO at Osprey Funds, believes a number of things are at play. He said crypto assets are going to sell off or experience a bit of pull as the market tries to adjust to the changing macro environment. However, crypto enthusiasts have highlighted that the current price momentum reflects the trends in late September of 2021. They said investors were showing low confidence in the market right before BTC broke the $45,000 mark. Bitcoin initiated a 62% rally. Analysts pointed out that unexpected positive market moves arise when investors least expect it. This seems to be quite likely.
Meanwhile, as the popular cryptocurrencies tumble, top stable coins and smart contract tokens have taken over more than 44% of the crypto economy. The Binance coin (BNB) commands around 3.37% of the market, while Tether (USDT) controls 3.35%, and Cardano (ADA) has 2% of the pie. Solana (SOL) is enjoying a market valuation of 1.85% and XRP represents 1.51%. There is also Terra (LUNA) commanding 1.22% of the market and Polkadot (DOT) 1.03%.
And let’s not forget the meme coins. It has a share of 0.56% of the crypto economy.