The cryptocurrency market has been under close watch throughout the prior week with traders and investors attempting to determine whether or not the present conditions warrant an entry or exit point. The top crypto-names, Bitcoin and Ether have been showing resilience in these bearish conditions, holding ground but also proving unable to rise above their 20-day averages. BTC is trading at the same price it did a month ago, whereas ETH has dropped by a fractional 2% in the last 30 days. In this Stocks Telegraph briefer, we cover news developments and market sentiment during the prior week.
Highlights of the week
A major player in the French banking landscape, Societe Generale-Forge has recently acquired the licensing and go-ahead to commence operations in the country as a ‘digital asset service provider’. The entity is a subsidiary of Societe General Group, one of the largest banks in France, and could play a major role in the French and wider European cryptocurrency and blockchain market.
One of the top names among Indian e-commerce players, Flipkart, recently announced that it has its visions set in the metaverse and is ready to launch an initiative focused on this web3 domain. The Walmart-backed company recently launched a pilot operation along with several brands that seek to incorporate loyalty points and gamification into the virtual shopping experience.
Participants of a top Chinese economic think tank recently proposed the idea of a blockchain-based Asian currency that could ensure the region’s reliance on the American dollar is cut down substantially. These comments come against the background of China’s highly successful Digital Yuan pilot initiative, which has recently been expanded significantly.
As the EU faces the pressure of limited energy supplies and an uncomfortable reliance on Russia, lawmakers are turning to target cryptocurrency mining in their latest attempt to implement an energy efficiency program. The energy cost of crypto-mining had been a point of contention previously, but this is the first time it has seen clamping down against in the EU zones.
Amid BTC volatility and the present bearish conditions, traders anxiously await the ‘Uptober’ spell to realize before the end of the month of October. This optimistic anticipation is based on historical trends suggesting the crypto-king has seen a price surge in ten of the last thirteen October.
Crypto fear & greed index
The bearish sentiment surrounding the market appears to have lingered for a time period that hardly seems normal for a dry spell. The market continues its extreme fear positioning, with the crypto fear & greed index figure at 24. There has been a marginal improvement over the prior days, as sentiment has somewhat bettered from its low of 20. Despite this, however, the market is seemingly struggling to push itself out of this sentimental state, considering its fluctuation within the 20 zones for the last 40 days.
A stretch this long suggests that the market is recalibrating its base sentiment towards the high-risk domain of cryptocurrencies, in the wake of the present macroeconomic conditions. Other analysts argue that this extreme fear sentiment does not stand justified in the resilience seen with BTC and ETH, signaling a strong buying opportunity.