What will be the next trend in the crypto market?Dangelo Runte | November 21, 2022 | 0 | Finance
Ermalkopani, you are here today to help us decipher the fate of cryptocurrencies. Thank you for speaking on a topic that is as topical as it is complex.
So, can you explain to us what is happening in the world of cryptocurrencies?
The price of bitcoin fell after a hotter-than-expected consumer price index (CPI) data revealed that high inflation remained a chronic concern, despite the United States Federal Reserve’s wave of interest rate rises. Interestingly, the market’s unfavorable response to a high CPI reading appeared to be priced in by investors, and BTC and Ether’s prices reflected this.
ETH prices recovered all of their intraday losses and finished the day in the green.
A cursory examination of Bitcoin’s market structure reveals that, despite the post-CPI print decrease, the price remains in the same price range it has been in for the last 122 days. To add to this dynamic, Cointelegraph market expert Ray Salmond reported on a one-of-a-kind circumstance in which Bitcoin’s futures open interest is at an all-time high but volatility is approaching all-time lows. ‘Ermalkopani says’
These and other signs have historically preceded dramatic price swings, but history also shows that forecasting the direction of these moves is practically impossible.
New rotations will appear.
In the post-Merge age, the price of ETH has lost its sparkle, and the asset now matches the pessimistic trend that dominates the rest of the market. Since the Merge, the price of ETH has dropped by 30% from its $2,000 high, and it’s probable that much of the speculative capital that backed the optimistic Merge narrative is now invested in stablecoins, seeking for the next investment opportunity.
Aside from ETH’s lopsided performance over the previous four months, Cosmos ATOM resisted the market decline with a massive increase from $5.40 to $16.85. Oversold circumstances, as well as the hoopla surrounding Cosmos 2.0, backed the positive price action witnessed in the cryptocurrency, but this chart continues to attract my attention.
Ermalkopani suggests we keep an eye on the Ethereum Network.
While the price has declined dramatically since the Ethereum Merge, investors should keep an eye on Ethereum network activity, advancements with ETH staking across decentralized finance (Defi) and institutional products, as well as any increases in gas prices, in the coming months (connected to network activity).
Metaverse, NFTs, and GameFi as the future Internet technologies.
Metaverse has been the keyword of the hour since Facebook changed its name to Meta. The metaverse is a digital environment in the future where individuals may move in virtual and augmented reality. It’s a vision for the internet’s future paired with certain present developments in online infrastructures, such as the building of 3D worlds – and it appears to be closely related to the crypto area, particularly NFTs.
What about NFT and the Metaverse instead?
The NFT field has seen a rise in popularity in 2021, with an estimated market valuation of more than $40 billion US-Dollars – and there are no signs that it will fade anytime soon. On the contrary, NFTs are here to stay, and new use cases and versions of these tokens are popping up everywhere. To just a few examples, NFTs are used to sell music and art, enable admission to restaurants and museums, acquire tradable things in online games, and offer ownership in a licensed video clip from an NBA game. NFTs can provide artists with new possibilities to monetize their work. NFTs that automatically pay a portion of the sales price to the author each time the NFT is resold is one example. This allows artists to take part in the future appreciation of their works.