For the past seven days, optimism has reigned in the cryptocurrency market: bitcoin has managed to overcome the $17,000 mark, and “digital oil” has managed to cross the $13,000 mark. Traditionally, the growth of the two largest digital assets has pulled the rest of the market with it, the correspondent of the Kapital.kz business information center reports.
The main beneficiary of the growth was Cardano (ADA). It increased its value by more than a quarter and thus pushed Dogecoin in the cryptocurrency rating.
However, experts urged investors to be restrained and calmly assess the chances of a possible market reversal towards long-term growth. As an example of a good indicator of the state of affairs in the industry, they cited the policy of large cryptocurrency companies in the field of personnel management. Coinbase, one of the largest digital asset trading platforms, announced the dismissal of 20% of its employees to reduce operating costs. “We need to cut costs in order to increase the chances of success in any scenario,” Brian Armstrong, CEO of the exchange, commented on the situation. Experts noted that such procedures would not make sense if the market is about to turn around and concluded from this that Coinbase management does not expect a rapid recovery in the industry.
But if the actions of major players contradict the aspirations of ardent optimists, then pessimistic moods do not find a response among market participants. Morgan Stanley has announced a $3.6 million investment in Grayscale Investments bitcoin trust. The trust, which, in the absence of any bitcoin ETF in the United States, is the easiest way for institutional investors to invest in the “first cryptocurrency”, has recently been subjected to information attacks. However, the Morgan Stanley investment instilled confidence in investors, and the trust rate immediately jumped by 12%.
As for cryptocurrency investment funds, last week investors continued to withdraw funds from them. Analysts at CoinShares noted that the negative trend has continued for the third week in a row. But CoinATMRadar experts assessed the state of the market in terms of such an indicator as the growth in the number of cryptocurrency ATMs around the world, and came to disappointing conclusions. The second half of 2022 was marked by the installation of only 94 new devices compared to 4169 Bitcoin ATMs installed in January-June 2022. This figure best reflects the mood of retail investors.
The only indicator that has grown in the cryptocurrency market is the volume of funds stolen by hackers. Experts from the analytical company Beosin calculated that in 2022 it amounted to $3.6 billion, outperforming the result of 2021 by 47.5%. The lion’s share of incidents that resulted in the theft of funds were hacks of the so-called cross-chain bridges, which allow the transfer of assets between different blockchain networks. From 12 hacks of cross-chain bridges, losses amounted to just under $2 billion. At the same time, decentralized finance (DeFi) protocols were the most hacked, accounting for 67% of all attacks.
According to the results of the past seven-day reporting period, the total capitalization of the cryptocurrency market made an impressive leap towards the $900 billion mark. As of Wednesday evening, January 11, 2023, it amounted to $859 billion, which is 4.76% higher than the values that were recorded at the end of the last reporting period .
1. Bitcoin (BTC). On Wednesday evening, January 11, 2023, the value of the “first cryptocurrency” managed to cross the $17,000 mark, ending the week at $17,412, which is 3.45% higher than the values recorded seven days earlier. The market capitalization of bitcoin during this period increased by $11 billion and amounted to $335 billion. The share of the “first cryptocurrency” in the total market capitalization lost 0.44 percentage points and amounted to 39.12%.
2. Ethereum (ETH). On Wednesday evening, January 11, 2023, the price of “ether” rose to $1338. This is 6.87% more than at the end of the previous seven-day reporting period. The share of Ethereum (ETH) in the total capitalization of the cryptocurrency market increased by 0.33 percentage points and amounted to 19.11%.
3. Binance Coin (BNB). As of Wednesday evening, January 11, 2023, BNB was valued at $275. According to the results of the past seven-day period, the price of the cryptocurrency increased by 7.84%. The share of Binance Coin (BNB) in the total cryptocurrency market capitalization increased by 0.16 percentage points, amounting to 5.14%.
four. Ripple (XRP). As of Wednesday evening, January 11, 2023, Ripple (XRP) was valued at $0.352. “Banking cryptocurrency” compared to the values at the end of the last reporting period grew by a modest 0.86%, yet managed to close the week in the green zone. The share of “banking cryptocurrency” in the total capitalization of the cryptocurrency market fell by 0.07 percentage points and amounted to 2.08%.
five. Cardano (ADA). As of Wednesday evening, January 11, 2023, Cardano (ADA) was worth $0.322. According to the results of the last reporting period, the price of the asset increased by an impressive 23.85%, which allowed the cryptocurrency to bypass DOGE and take 5th place in the top digital assets by market capitalization. The share of ADA in the total capitalization of the cryptocurrency market at the end of the week increased by 0.19 percentage points and amounted to 1.3%.
6. Dogecoin (DOGE). As of Wednesday evening, January 11, 2023, Dogecoin (DOGE) was worth $0.0767. The digital asset showed an increase of 6.23%, but this did not help it stay in the fifth place of the top due to the explosive growth of ADA. The share of DOGE in the total capitalization of the cryptocurrency market at the end of the week was 1.19%, showing an increase of 0.02 percentage points.
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