Weekly crypto market analysis (3 - 9 April)
Crypto Market Evolution
The crypto market has experienced another neutral week, with no significant movements. As a result, most digital assets are trading at similar values to those seen in mid-March. The past seven days have been characterised by sideways movement and a lack of clear direction in both the crypto and international financial markets, with investors’ attention focused on the Catholic Easter holidays.
The absence of major macroeconomic events or news, combined with reduced market volumes during a short week, has resulted in one of the calmest trading periods of the year.
In the crypto market, there have been no significant events. Bitcoin remains at the same level of $28,000 and Ethereum is trading around $1,800. Among the top 50 market cap crypto-assets, there have been no movements exceeding 10%.
After this mini-vacation, we may see a return of volatility in financial markets. The main narratives of this year - the possibility of a global recession and central bank monetary tightening - could influence movements in international stock markets and potentially spill over to the crypto market.
The total market capitalization of digital assets has remained stable at around $1.15 trillion with no major fluctuations.
Bitcoin has oscillated around the $28,000 zone over the past seven days, after three weeks in which the price of the most important crypto asset failed to make convincing movements above or below this level.
Trading activity indicates market uncertainty about the short-term trend, also taking into account the reduced volumes experienced in the market these days. Perhaps the most important news of the week came from MicroStrategy, the largest corporate holder of Bitcoin, which announced the acquisition of another $30 million worth of BTC, bringing the American company’s total holdings to over 140,000 BTC. At current prices, the Bitcoin held in the treasury of Michael Saylor’s company is worth nearly $4 billion.
Thus, we see that investors who believe in the long-term evolution of Bitcoin are accumulating BTC at these prices, in anticipation of a return to a consistent bull market, as we had in 2020-2021.
Technical analysis indicates a neutral period over the past 21 days in the $28,000 zone. However, given the volatile nature of the crypto market, we can expect BTC to break out of this price range with significant movements in the coming period.
The direction of stock markets may also influence the digital asset market, as has been the case in most recent instances, so there may be a correlation between the movements of these two investment asset classes in the coming weeks.
ETH had a very good start to the week, managing to rise above the $1,900 level, outperforming other crypto assets, especially BTC. Starting on Thursday, the Ethereum network token began to correct, so that the end of the week found ETH below $1,850, an upward resistance zone over the past 21 days.
On April 12th, the Shanghai (or Shapella) upgrade will be implemented, a technical fork of the Ethereum network that will allow the unstaking of tokens “locked” in the Proof-of-Stake mechanism for validating network transactions, which Ethereum switched to in 2022.
After the Shanghai upgrade is implemented, more than $2 billion worth of ETH tokens will become available for circulation in the first phase.Thus, we may see selling pressure on ETHER if even a portion of these cryptocurrencies are placed on “sell” orders. However, if we do not see such a mass selling event, this could be seen as a sign of long-term confidence in the Ethereum project and ETH holders may wait for higher prices to realize their profits from staking services.
Therefore, “Shanghai” could represent an important moment for the evolution of ETH in the immediate future and we should pay close attention to ETHER token movements around April 12th.
EGLD had a slightly negative week, with the price dropping to the $40 zone. Amid market calm, some altcoins, including eGold, experienced minor corrections.
Some analysts attribute this reaction to investors seeking refuge in BTC in preparation for a potential period of volatility. However, trading volumes were low, so we cannot conclude a clear market direction or intention during these days.
In the past week, the MultiversX team announced a series of upgrades and new features that will be added to the ecosystem in 2023, including debit cards associated with the EGLD crypto asset. This feature could increase the attractiveness and utility of the EGLD token and, if it also benefits from a positive market context, eGold could have a good period in the second half of the year.
Until then, it is very likely that the evolution MultiversX's token will be influenced by general market movements. The last two weeks have brought very low volatility on EGLD, which could represent a period of calm before more significant movements that set the direction for the coming months.
Limitation of Liability
This report issued by Tradesilvania is purely informative and is not intended to be used as a tool for making investment decisions in crypto-assets. Any person who chooses to use this report in the process of making investment decisions assumes all related risks. Tradesilvania SRL has no legal or other obligation towards the person in question that would derive from the publication of this report publicly.
The information in this report was obtained from public sources and is considered relevant and reliable within the limits of publicly available data. However, the value of the digital assets referred to in this report fluctuates over time, and past performance does not indicate future growth.
Total or partial reproduction of this report is permitted only by mentioning the source.