The crypto market has been showing all the signs of the raging bull finally awakening from its deep slumber. Yesterday, Bitcoin reached its highest level of the last 5 months, surpassing $21,400. Ethereum too has made it big, after it had finally made it to $1,600. It appears that the strengths of the crypto industry have dominated perceptions, and investors are eager to turn to digital assets as a store of value amid the anticipated recession of the following months.
Highlights of the week
- Amid the growing calls for regulating the cryptocurrency industry, Japan has recently called for the world to place strict controls and governance mechanisms on the crypto-realm, similar to that imposed on the banking industry. Top financial officials in the country have been increasingly stating that the FTX fiasco occurred due to loose regulations and weak internal controls.
- South Korean regulating bodies have reportedly been working on the development of cutting-edge crypto monitoring tools. These assess risk levels and volatility, and could potentially play a major role in ensuring the financial stability of economies where cryptocurrency plays a major role.
- Thailand’s Security and Exchanges Commission has brought in a new set of regulations, specifically aimed at companies that offer cryptocurrency custodial services. Each of these entities would now require sound digital wallet management systems that ensure security and efficient custody. The move is clearly one that denotes crypto mainstream acceptance, even across Eastern economies such as Thailand.
- Ethereum’s recent rise to $1,600 has been celebrated across the market, however, the crypto asset has simultaneously been hit with a gas fee spike, during these last two weeks alone. On new year’s day, the cost stood at $2.93 per transfer, whereas presently it hovers above $4.52. This surge depicts an end to the low gas fee phase of ETH, which had been in play for several months during the bearish mode of the market.
- In a recent update to the widely followed bankruptcy case surrounding the disgraced FTX exchange, $5.5 billion have come under discovery by the new CEO of the company, in the form of liquid assets. These are going to be committed to maximizing the recovery of the affected parties, while the sale of subsidiaries is also placed under consideration.
Crypto fear & greed index
Market sentiment surrounding cryptocurrencies is currently going through an epic recovery that was not present throughout most of 2022. Yesterday, for the first time since April, the crypto fear & greed index showed a result of 52, well within the greed rather than the fear zone, denoting the strong boost in market perception. Today, the index is down to 45, but still stands remarkably higher than any point it has been in, since the last 10 months.
This sudden shift in market sentiment bodes extremely well for the future of crypto in the coming months and is evident through the remarkable recovery of Bitcoin and Ethereum prices. The timing of this market boost, as all macroeconomic indicators point to the coming of a recession could see investors flock to take refuge in virtual currencies, amid the growing weakness of fiat money.