The cryptocurrency market started the week slow due to the holiday season but picked up a pace over the course of the week. Bitcoin started trading at the US$16,584 level. It has been trading in a tight range between $16,256 and $17,061 for the past few days, indicating a lack of strong moves from bulls or bears.
BTC began consolidating above the $16,800 level on Thursday as market volatility remained high following the release of the Federal Open Market Committee minutes. The bank expects inflation to rise more aggressively to 3.5% this year, which is higher than expected. Bitcoin is down nearly 75% from its all-time high of USD 69,000 in November 2021. In the past 24 hours, BTC has traded above the USD 16,900 level. The resistance level for BTC is $17,000. However, a clear move above the USD 17,000 level could create a sense of confidence among the bulls to rally further in the coming week.
On the other hand, Ethereum also marginally consolidated with momentum on Thursday. However, despite a small decline, the sentiment remains somewhat bullish as ETH continues to trade above the US$1,250 level. Other major cryptocurrencies are also spending much of this week in a similar trend to BTC and ETH.
In an interesting turn of events, the UK will soon implement a tax exemption for foreign investors who buy cryptocurrencies through local investment managers or brokers. The tax break, announced in December, is part of Prime Minister Rishi Sunak’s plans to turn the UK into a crypto hub.
Korean tech giant LG made an announcement regarding its metaverse ambitions at the Consumer Electronics Show 2023. NFT enthusiasts can now use a service known as Blade Wallet to buy, sell and trade their digital artwork at home using the their LG smart via the company’s LG Art Lab platform.
Jared Gray, CEO of decentralized exchange SushiSwap, plans to redesign SushiSwap’s tokenomics. The new tokenomics aims to increase liquidity and decentralization in the platform and strengthen treasury reserves to ensure continued operation and development, according to Grey.
The Dogecoin Foundation has announced a new 5 million fund for Dogecoin Core developers to further promote the Dogecoin ecosystem in the new year. According to the Dogecoin foundation, the fund will be held in a new multi-signature wallet managed by its members and needs three out of five signatures from Dogecoin Core developers. These custodians will have no rights to the funds other than handling the release. Coming to the price action, among the top 100 cryptocurrencies by market capitalization, here are the best and worst cryptocurrencies in the last week:
Top 5 crypto gainers of the week:
1. Lido DAO is up 55%
2. Solana increased by 35%
3. Ethereum Classic is up 29%
4. Frax share increased by 23%
5. NEAR protocol increased by 23%
This Week’s Top 5 Crypto Losers:
1. Neutrino USD is down 8%
2. Huobi token is down 7%
3. TRON is down 4%
4. Computer Internet is down 3%
5. UNUS SED LEO is down 2%
(The author, Edul Patel, CEO and co-founder of Mudrex, a global cryptocurrency platform)