Weekly Overview of Cryptocurrency Markets
The global cryptocurrency markets saw a relief rally fizzle out just after Bitcoin crossed $30,000. The global crypto market volume stands at $62.11 Billion, the Defi market is at $5.4 Billion, and the net worth of stablecoins is $52.1 Billion. Bitcoin Dominance is at 46.29%.
Relief Rally Fizzles Out
On 31 May 2022, 10 PM IST Bitcoin made a high in the small time frame of 2 months. This high was supposed to be a much-expectedbitcoi52 relief rally but later fizzled out. Bitcoin is more than 50% down from its all-time high of almost $70,000 in Nov 2021. A similar trend was spotted in Ethereum and major altcoins.
Bitcoin dominance stands at 46.29% which shows how much of a portion of the overall cryptocurrency market valuation is captured by Bitcoin.
Global Crypto Market
The total cryptocurrency market cap stands at $1.223 Trillion as of now, which is much lower than its all-time high of 2.967 Trillion.
The reason for the downfall of Global Cryptocurrency Markets can be attributed to a lot of factors:
- High inflation prevails in major economies like the USA, India, Europe, Turkey, etc. These economies are a large market for cryptocurrencies.
- Fiscal tightening by the US Federal Reserve reduced the liquidity from the money market, equities, and cryptocurrency markets alike. Further, another Central Bank, the RBI of India also increased interest rates.
- The heightened stance of government bodies and regulators in the face of Terra LUNA collapse resulted in much tightening of cryptocurrency markets.
The Past Week
In the past week, many developments took place, a few important ones are listed here:
- Japan Adopts Stablecoins while ensuring investor protection. Link.
- Durable Nonces cause Solana Blockchain to halt. Link
- Polygon asks for KYC before delivering financial services. Link
- Crypto in Retirement Funds. Link.
- Why did ADA spike over 50%? Link.
- Bitcoin Lightning Network gains a capacity of over 3900 BTC. Link