- Bitcoin approaches 40k while correlation with NASDAQ reaches ATH
- Cardano fell below psychological $1.00 level despite strong fundamentals
The past week was a negative one for the cryptocurrency market as growing economic uncertainty tied to Russia's unprovoked invasion of Ukraine and rising bond yields and the expected first interest rate hikes by the FED negatively affected market moods. In recent weeks cryptocurrencies performance has largely dovetailed with major equity markets. Bitcoin price has consistently moved in the same direction as the Nasdaq 100 index for over six months. Analysts at Bloomberg believe Bitcoin is more in unison with big technology stocks than ever before. During today's session once again we can observe sellers' activity. Bitcoin's market dominance decreased to 41.6%. The capitalization of all digital assets in circulation dropped to 1.90 trillion, while an average daily trading volume is registered at $ 81.0 billion.
Negative macro outlook, puts pressure on market sentiment. The Crypto Fear & Greed Index is now firmly back in “fear” territory. Source: Alternative me
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Correlation between US100 and Bitcoin has been very strong in recent months. Source: xStation5
Bitcoin
Bitcoin mining difficulty, which measures how much computer power is needed to produce a new coin, is expected to adjust downward from recent record levels to reflect changes in mining composition.
Bitcoin difficulty 7-day average chart remain all all-time high despite last week’s sell-off.Source: Blockchain
Russian Prime Minister Mikhail Mishustin said that 10 million Russians have over 10 trillion rubles ($128 billion) in crypto wallets, which is just under $1,000 per Russian resident. He also called for regulation of cryptocurrencies, although he rejected their recognition as a means of payment.
Bitcoin dropped below the key horizontal support at $ 45,000 on Wednesday and is currently approaching psychological support at $40,000. If the correction move continues, the next major support to watch lies at $ 38,000, which is marked with previous price reactions and the 78.6% Fibonacci retracement of the last upward wave. Source: xStation5
Cardano:
Cardano’s innovation engine Project Catalyst, seems to have partnered with Ariob, an Africa-focused incubator in order to enhance the growth of projects which aim to solve real-life problems in Africa.
Cardano price fell sharply last week and according to IntoTheBlock’s “in/out of the money” indicator, which calculates the average cost at which the tokens were purchased and compares it to the current price, approximately 67% of ADA holders are recording losses.
Around 3.41 million ADA addresses are in the red compared to just 1.25 million in the green.Source: IntoTheBlock
However, the project looks very strong on the fundamental side.The number of ADA holders hit a new all-time high of 5.1 million, while network demand reached record capacity earlier this year when the much-hyped SundaeSwap decentralized exchange was launched.
According to Santiment, Cardano was the most developed crypto project on GitHub last year. Also developers enabled another to invest option in the form of NFT bonds. Cardano co-founder Charles Hoskinson also believes that many Cardano dApps are waiting for the Vasil hard fork in June to launch.
Cardano price pulled back sharply last week after a failed attempt of breaking above major resistance at $1.25 and is currently testing local support at $0.97 which is marked with previous price reactions and 50 SMA (green line). Source: xStation5
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