The new year has so far brought nothing but disappointments to cryptocurrency investors.
Only one of the top 20 cryptocurrencies by market cap has seen its price rise in the past seven days. That honor goes to Chainlink which is up 20%, according to Coingecko. All other leading coins posted double-digit percentage losses in the new year. Market leader Bitcoin actually experienced one of the weakest drops of the week, comparatively. It was down 13% over 7 days, trading at around $ 41,000. Despite the drop, the Bitcoin network set a new record last Sunday, when its hashrate hit an all-time high of 203.5 exahashes per second (EH / s), before dropping back down a few days later. Bitcoin’s new and brief hashrate record marked a 200% increase in power since July of last year, when a statewide mining crackdown in China brought down the network’s hashrate. Many Chinese miners have resettled in Kazakhstan and the network has rebounded, more powerful than ever, but civil unrest in Kazakhstan earlier this week prompted authorities to shut down internet services across the country, plunging the network’s hashrate. again at around 172 EH / s. On Tuesday, the U.S. Securities and Exchange Commission delayed announcing a verdict on the approval or rejection of the New York Digital Investment Group’s request to create a spot bitcoin ETF. A new date has been set for March 16 of this year. NYDIG’s request joins Bitwise and Grayscale’s proposals on the SEC’s dock. Bitcoin took a new step this week. As of Wednesday, the market dominance of the world’s number one cryptocurrency had fallen to 37.28%. This new figure marks the lowest level of market dominance by bitcoin since 2018. Also on Wednesday, the US Federal Reserve indicated that it could postpone its decision to raise interest rates and stop trading until mid-March. ‘print change. Bitcoin lost 6% of its value and the global crypto market cap fell 6% within 24 hours of the news. Stock prices also fell more than 3%.
Ethereum and altcoins did not fare much better.
While the Chainlink is on the rise, other altcoins are deeply in the red this week. Ethereum is down 19% from last week and is trading at $ 3,030, although NFT sales are skyrocketing to start the new year. On Wednesday, a team of analysts at investment bank JP Morgan said Ethereum could face competitive difficulties from rival blockchains like Avalanche, Solana and Terra in the near future, as all of these blockchains offer more scalable service and lower gas charges than Ethereum. A report by cryptocurrency investment firm Electric Capital concluded that Polkadot, Avalanche, Solana, and Terra all had faster initial growth than Ethereum when it was at a comparable point in its journey. It should be added that Ethereum has developed in a very different market environment from that of its rivals. Solana, Avalanche and Terra are among the biggest losers of the week, each having lost more than 20% of their course over seven days. Solana lost 23% in one week and is currently trading at $ 134.50. Avalanche and LUNA are both down 29% to $ 80.27 and $ 63.69, respectively. The start of 2022 has been gloomy for cryptocurrencies, but cryptocurrency’s enthusiasm for what lies ahead hasn’t waned.
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