Cryptos Continue To Decline

Cryptocurrencies dropped again after staging a modest recovery, shedding 0.52 percent in market capitalization over the previous day. Caution prevailed ahead of the release of the minutes of the previous FOMC meeting that would unveil the tone of the deliberations at the decisive Fed meeting.

Bitcoin is trading at $46,387.44, down 0.92 percent from yesterday’s level. The lead cryptocurrency is also negative 1.20 percent on a weekly basis. Bitcoin dominance has fallen to 39.3 percent from 39.4 percent, as of Tuesday.

Ethereum is trading at $3,803.45, having lost 0.89 percent in the past 24 hours. ETH is however up 2.1 percent on a weekly basis. Ethereum’s market dominance was stable at 20.3 percent.

Meanwhile, Vitalik Buterin, the co-founder of the Ethereum network has denied reports that the ETH 2.0 project, that would see the transition from a “proof of work” to a “proof of stake” consensus algorithm would be delayed by as much as a year.

81st ranked Mina (MINA), 93rd ranked Livepeer LPT and 30th ranked Internet Computer (ICP) have gained more than 10 percent on an overnight basis despite the weakness in the broader market.

25th ranked Cosmos (ATOM), 30th ranked Internet Computer (ICP), 83rd ranked Ravencoin (RVN), 27th ranked Fantom (FTM) and 90th ranked Velas (VLX) and have gained more than 40 percent on a weekly basis.

Notable laggards are 9th ranked Terra (LUNA) which is trailing by 4.20 percent, 11th ranked Avalanche (AVAX) which is down 2.74 percent, 13th ranked SHIBA INU (SHIB) which has lost 2.02 percent, 14th ranked Polygon (MATIC) declining by 2.67 percent and 16th ranked Coin trailing by 3.48 percent. coin’s slide comes amidst reports that the UK’s marketing regulator banned two advertisements from following a complaint.
Solana which had reportedly suffered a distributed denial of service (DDOS) attack later clarified that it was merely a congestion issue and not DDOS. The
5th ranked coin is currently trading at $168.38, down 2.07 percent on an overnight basis and more than 3 percent on a weekly basis.

Open Interest or the total number of open contracts in Bitcoin Futures at the Chicago Mercantile Exchange decreased to 10563 on Tuesday, from 11982 the day before.

Open Interest in Ether Futures decreased to 3528 on Tuesday from 4298 the day before.

Meanwhile, Goldman Sachs has reportedly predicted that Bitcoin could reach $100,000 by chipping in from Gold’s share of the “store of value” market comprising Gold and Bitcoin.

In regulatory news, the European Securities and Markets Authority (ESMA) on Tuesday invited input from stakeholders on the use of distributed ledger technology (DLT) for trading and settlement.

The Fed’s monetary policy regime as well as the interest rate tightening cycle planned to be rolled out, hold immense sway over the cryptocurrency market, just as the other equity, debt and commodity markets. Whether Bitcoin and other cryptocurrencies can withstand the hawkishness in the Fed’s language would be known in due course.

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