The market capitalization of the cryptocurrency market shrunk by more than $30 billion from Friday to Sunday. At the same time, Bitcoin continued its downtrend and broke below the $22,300 level. After this weekend's setback, what to expect this week in crypto markets? Response elements.
A declining global market cap
The market capitalization of the cryptocurrency markets fell 9.6% this weekend. This is the biggest loss experienced in the month of July. A total of $30 billion has been subtracted from crypto markets.
While the global market cap of crypto-assets peaked in November 2021 at nearly $3 trillion, today it is equivalent to that seen in February of the same year.
On June 13, the capitalization of the cryptocurrency market fell below the $1 trillion threshold. Nevertheless, despite the losses incurred this weekend, the latter has remained above this level since July 16.
A laborious weekend for Bitcoin
Last week, the BTC invalidated the most pessimistic forecasts. The price of Bitcoin had, in fact, experienced an upturn, climbing 17% from Monday to Wednesday. Breaking an upward compression triangle pattern, it was fair to think that BTC was committed to another week in the green.
However, since July 20, the price of BTC has fallen by 12% and is now struggling to cross, on the upside, the level of 22,000 dollars. The $21,600 level will be one to watch this week. A crossing of the latter, downwards, could open the way to a fall to 20,000 dollars.
Altcoins on the decline
As for the altcoins, the bears got the better of the buyers this weekend despite the relative boom experienced this week.
Since July 18, Ethereum has failed to close above the $1600 pivot level. However, the price of ETH soared 53% between July 13 and July 19. Consequently, the phase of stabilization crossed, at the present time, is not surprising.
Moreover, the acceleration of the timetable for routing the Ethereum blockchain towards a consensus of the proof of stake (PoS) type having accelerated, the next future of the course generates little concern.
The price of Polygon (MATIC) suffered, meanwhile, a loss of almost 10% during the past week.
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Elsewhere, Polkadot (DOT), Tron (TRX), Solana (SOL), Tezos (XTZ), and Filecoin (FIL) prices endured a week in the red, with losses approaching 5%.
Over the past week, some altcoins have nonetheless performed. Cardano (ADA) is consolidating its support at $0.50 after going through a timid but assured growth of 4% in the last 7 days. The prices of Uniswap (UNI) and Monero (XMR), for their part, recorded increases of 6%.
Finally, nice surprises on the side of Ethereum Classic (+13.53%), ApeCoin (+10%), and EOS (+12%) which had a week in the green, against the trend of crypto-markets.
A new Fed consultation begins today
A new meeting of the US Fed's FOMC (Federal Open Market Committee) will be held from July 26 to 27. As usual, it will be advisable to be attentive to the announcements that will be made at the end of this meeting.
The institution intends to continue its efforts in the fight against the inflation that is hitting the United States. Many analysts expect more aggressive measures to be taken. Therefore, the scenario of an increase of 75 to 100 basis points in interest rates seems most likely.
If this is confirmed, the cryptocurrency markets could once again suffer in the medium term. However, investors, well aware of the intentions of the institution, seem to anticipate its statements more. We could therefore expect a lesser impact on the markets than that experienced last May.
Anyway, it can be expected, from this new FED meeting, an increase in volatility in the cryptocurrency markets. Furthermore, the overall market capitalization of crypto markets could continue to stall following the FOMC announcement.
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