G’day folks and welcome to my first post on recent price action within the Cryptoverse. It’s been a green week not just for Cryptocurrencies, but also for stock markets around the world. The Dow Jones is up 0.56% over the past week and the Nasdaq is up 2.59%. That’s a fairly solid week for the stock indices, but crypto gains have put these to shame.
The price of Bitcoin almost touched $38,000 on Friday and has had a bumper week with gains of 5.9%. ETF hype appears to be driving this move, as it now appears highly likely the SEC will approve multiple spot Bitcoin ETFs within the next few months. It seems that the price of Bitcoin will continue to rise until at least one of these ETFs is approved. It is quite possible that this could be a typical “buy the rumour, sell the new” event. Prepare for BTC to experience a sharp dip in price in the weeks following the ETF/s approval.
As well as Bitcoin has been performing over the last week, alts (coins other than BTC) have been on an absolute tear. It seems that a mini alt season is upon us with the hype around the Bitcoin ETF/s also positively impacting most other cryptocurrencies. New coin Celestia, which was just airdropped to users of a number of Ethereum-based chains, has had a great start with gains of 89.5% over the past week. Cronos, the native token of the exchange crypto.com, almost has had an outstanding week with gains of 61.6%. Chainlink and Solana, popular coins from the last bull run, have also been performing exceptionally.
Who knows how long this rally can last. I would speculate that most coins will continue to see positive price action until at least one spot Bitcoin ETF is approved. When this will happen is anyone’s guess. Some are speculating this may occur as soon as next week, while others suggest the first approval will take place at the beginning of 2024. Again, I would not be at all surprised if there is a sharp pullback in the price of alts in the weeks following the first ETF approval. It is my personal opinion that we will experience one more sharp leg down in cryptocurrency prices before the next bull run well and truly kicks off. I would recommend making sure you have some money available to “buy the dip” when this occurs.
The immediate future still looks bleak, not only for cryptocurrencies, but for all markets. Interest rates are at their highest point in years in most countries around the world, with future interest rate rises entirely possible in the coming months. Inflation still remains stubbornly high in many countries, and there is also the possibility of a recession. As always, take care when investing and never put in more than you can afford to lose.
Crypto4TheMasses 