The crypto market turmoil has affected several blockchain projects, crypto-based firms, and potential investors, leading to layoffs, resignation, and stopping further expansion. This crypto winter is the fifth historic crypto bear market which began in November 2020 and pushed all cryptocurrencies to the bottom line in the price graph.
The crypto market is trading sideways due to the influence of some macro factors. While the last 24-hour price charts of major crypto projects have brought a ray of hope for investors, it may remain for a short period of time.
A Positive Move In The Last 24 Hour
Top leading crypto projects have gained positive momentum in the last 24-hour price graph. Bitcoin has crossed its crucial price level of $20K and gained over 0.75% uptrend. According to CoinMarketCap, Bitcoin is currently trading near $20.3K with an intraday high of $20,456.
A bullish rally seems to have spread to several coins including Ethereum, as ETH surpassed its $1,350 level and is currently trading near $1,371 with an increase of 1.61% over the past 24 hours . The popular meme coin DOGE has seen a tremendous rally from $0.065 to $0.065 in the last three days, indicating a strong bullish momentum in the crypto market.
Furthermore, Ripple’s native token XRP has bounced back to the North as it is trading at $0.5 with a positive gain of nearly 2% in the last 24 hours.
The stability of the crypto market is in fear!
Despite the positive price action in the crypto market, crypto strategists and analysts are predicting that the price will be down soon as the upward momentum is volatile and could fall to the ground quickly.
Michael van de Poppe, CEO of Eight Global and a prominent crypto analyst, predicts that the crypto market may soon have a downturn following the US dollar rally. Moreover, the data on US unemployment will be published on Friday, and Poppe thinks any negative data can create a bearish sentiment in the market. According to him, these are macro factors that will have a significant impact on the crypto market.
After the bear market, it is clear that microeconomic factors also play a major role in the price action of the crypto market, establishing a link between the world economy and the crypto sector. US Fed interest rate hike, inflation data and regulations instill fear in the stability of the crypto market.
However, it is anticipated that the crypto market will moon soon following the positive sentiments as it has become mainstream in the era of digitalization. Despite the crypto winter in 2018, the crypto market recovered and gained over 2500% in market capitalization.
