The first week of 2022 kicks off big for Bitcoin and the rest of the cryptocurrency market, with total capitalization dropping by nearly $240 billion in seven days. It comes as the US Federal Reserve has revealed plans to start shrinking its balance sheet, which may start as soon as the next several months.
It is safe to say that the price of Bitcoin has seen better days. Down about 12.5% since this time last week, BTC is currently trading at around $41,400. For the majority of the time over the past seven days, the cryptocurrency has been chopping sideways, but on January 6th, things took a turn for the worse when the price dropped around $46K. The bears are not over yet, and today the price appears to be heading lower, after dropping below $41,000.
Market sentiment is currently in a state of extreme fear, according to the Bitcoin Fear and Greed Index, which reached its lowest level since July last year. This is starkly reflected in the charts as the vast majority of cryptocurrencies are in the top 20 in red, with the exception of Chainlink (up 25.8%) and ATOM (up 43%). Ethereum fell 15.5%, BNB – 14.1%, Solana – 20.8%, ADA – 10.8%, DOT – 9.2%, and so forth.
Elsewhere in the cryptocurrency market, things are looking more promising and optimistic. The space for non-fungible tokens (NFTs) continues to thrive with the recent announcement of Samsung’s dive. The tech giant will enter the metaverse through the famous Decentraland (MANA) project. OpenSea – the largest NFT market – closed another funding round that brought its total value to $13 billion, clearly demonstrating investor appetite.
Anyway, it will be interesting to see how things will take shape in the coming days and well into 2022. Will we see a deeper correction, or will the industry grow more than it did in 2021? Only time will prove it.
Market value: 2072 billion dollars | 24h Vol: 180b | Bitcoin dominance: 39.9%
BTC: USD 41,320 (-12.5%%) | Ethereum: $3,129 (-15.5%) | ADA: $1.21 (-10.8%)
This week’s crypto headlines you can’t miss
The third largest bitcoin whale swallowed another $24 million in BTC during the decline. The third largest bitcoin address bought another 551 bitcoins while the price was dropping by an average point of $45,219. This week alone, the entity has accumulated over 1,000 BTC.
Samsung delves into the Metaverse using Decentraland (MANA) capabilities. The Korean tech giant, Samsung, has introduced a new feature that will allow its customers to attend live music events virtually through the metaverse. In doing so, the company chose Decentraland to build its place.
Intense Fear: Bitcoin Fear and Greed Index is at its lowest point since July 2021. The Bitcoin Fear and Greed Index, which measures overall market sentiment that aggregates various data points, is at its lowest since July 2021. According to him, the current sentiment is one of intense fear.
Airbnb’s CEO is busy adding crypto payments in 2022. The CEO of Airbnb took it to Twitter to discover any potential features that its customers would like to see launched in 2022. The majority of respondents said cryptocurrency, and the high-profile CEO raised potential integrations.
OpenSea valuation grows to $13.3 billion after $300 million in Series C funding. OpenSea – the leading non-fungible marketplace (NFTs) – has raised $300 million in a funding round led by Paradigm and Coatue. This brings the company’s total value to $13.3 billion.
The bored Monkey Yacht Club has exceeded a billion dollars of total turnover at the open sea. One of the most popular NFT groups – Bored Ape Yacht Club – managed to cross $1 billion in total trading volume on OpenSea this week. The current minimum price is at 68 ETH, which is higher than the low price of the popular cryptocurrency.
This week we have chart analysis for Ethereum, Binance Coin, Cardano, Solana and Luna – click here for full price analysis.
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Cryptocurrency charts by TradingView.