Weekly Cryptocurrency Update (Jan 01 – 07): Coins to watch – BTC, ETH, LTC, XRP & DOGE

In this scenario, the price might drop to $41,000 in the coming days. However, near the $40,000 level, the next significant support exists. The BTC/USD coin is trading at the 41,297.1 level and consolidating in the range between 42,615.8 and 43,772.3.

The reason for the ongoing declines in BTC, however, could be linked to the Federal Reserve’s most recent meeting, which showed the central bank’s leaning toward more aggressive policy action, sapping investor appetite for riskier assets. It is also worth mentioning that the Nasdaq fell more than 3% overnight, the most in a single day since February after Fed minutes revealed that policymakers discussed shrinking the bank’s balance sheet during their December meeting when they also chose to speed up the end of their bond-buying program. This was also seen as one of the most critical factors putting downward pressure on BTC prices.

Mining and hash rates for Bitcoin (BTC) are again in the news. Rising fuel prices and the environmental impact of mining are becoming primary concerns. During an ongoing energy crisis, news of the Kosovo government prohibiting crypto mining hit the headlines on Tuesday. Late last year, the government declared a 60-day emergency to divert finances to energy imports. The restriction may not have been significant worldwide, given that Kosovo does not have a large Bitcoin (BTC) mining industry. Kazakhstan experienced internet disruptions over the course of the night on Wednesday. Rising fuel costs have sparked public unrest following the government’s decision to eliminate a price restriction on fuel. Anti-government protestors reportedly seized government offices in the country’s capital. Protests have been reported in other parts of the country as well. As a result, Kazakhstan’s president, Nursultan Nazarbayev, enforced a communications blackout.

Kazakhstan has recently grown in popularity among Bitcoin (BTC) miners. According to the University of Cambridge, Kazakhstan contributed 18.1 percent of the total hash rate in August 2021. The total hashrate was 8.2 percent in April, down from 1.4 percent in September 2019, when China accounted for 75.5 percent of the global hashrate. Thus, the internet outage this week and a drop in Bitcoin (BTC) mining appear to have had no influence on Bitcoin (BTC). The blackout occurs when Bitcoin (BTC) and the larger crypto market are on the decline.

Furthermore, Kevin O’Leary, a multimillionaire investor, and crypto enthusiast, believes that the nonfungible token (NFT) industry will be valued more than Bitcoin (BTC) in the future. Mr. Wonderful, as O’Leary is known, said on CNBC’s Capital Connection on Wednesday that NFTs had a greater potential to attract capital than Bitcoin because they could tokenize and authenticate actual commodities like automobiles, watches, and real estate. This news may have a bearish impact on the BTC/USD price.

Weekly Cryptocurrency Summary – Ethereum (ETH/USD)

During Friday’s Asian trading day, the price of Ethereum remained extremely low. The daily trend has been persistent, consistent, and constant selloffs with no signs of recovery in sight. Ethereum plummeted after the US Federal Reserve revealed minutes from its December meeting, indicating that it plans to hike interest rates more quickly in 2022. According to the minutes, the Federal Open Market Committee (FOMC) is in favor of raising short-term rates “sooner or at a faster pace than participants had previously anticipated,” according to the minutes.

According to the CME Group, trading in the interest-rate futures market revealed a two-thirds chance of the first hike in March. Following the release of the minutes, ether fell by more than 13.50%, reaching a low of $3,200.Its decline paralleled similar downtrends in the cryptocurrency market, with Bitcoin (BTC) falling over 9% to nearly $42,100.

Furthermore, the selling bias surrounding Ethereum, the world’s second-largest cryptocurrency, could be linked to the risk-off mood in the crypto market. The fall of Bitcoin has brought this to light. On Thursday, Bitcoin plummeted below $43,000, touching multi-month lows, after minutes from the Federal Reserve’s most recent meeting indicated the central bank was leaning toward more aggressive policy action, dampening investor appetite for riskier assets. The recent greenback selling bias, on the other hand, is assisting the ETH/USD currencies in limiting their losses. The broad-based dollar was lower in Asia on Friday morning, but the Japanese yen was expected to climb for the sixth week in a row. The surge could be extended if the latest US jobs report justifies early Federal Reserve interest rate hikes.

Furthermore, Vitalik Buterin, one of Ethereum’s co-founders, has begun to consider altering the network’s current fee structure. Buterin outlined the concept, entitled “Multidimensional EIP-1559,” in a blog post published on Jan. 5, noting that different Ethereum Virtual Machine (EVM) resources have differing gas utilization demands. He continued, citing block data storage, witness data storage, and block state size changes as instances of short-term “burst” vs. “continuous” capacity limits within the EVM. As a result, this news did not affect the price of ETH.

Weekly Cryptocurrency Summary – Litecoin (LTC/USD)

The LTC/USD currency remained well-offered near the 126.600 mark, unable to reverse its losing trend from earlier in the day. LTC/USD is currently trading at $130.800, down 3.75 percent on the day. The coin price is set to break through the channel’s lower border, signaling a significant downward trend. Despite low volatility, LTC/USD remains in a short-term bearish trend. LTC’s decrease could be attributed to the crypto market’s poor performance, which has hurt all crypto coins. This was evident as Bitcoin plummeted below $43,000 on Thursday, touching multi-month lows after minutes from the Federal Reserve’s most recent meeting revealed the central bank was leaning toward more aggressive policy action, dampening investor appetite for riskier assets.
The recent dollar selling trend, on the other hand, is assisting the LTC/USD coins in minimizing their losses. For example, on Friday morning, the dollar was weaker in Asia, but the Japanese yen was predicted to rise for the sixth week in a row. If the following US jobs report justifies early Federal Reserve interest rate hikes, the losses could be short-lived. On Tuesday, the dollar hit a five-year high against the yen, reaching 116.35, but it has since fallen back. The dollar gained around 0.7 percent against the yen this week, and about 2.7 percent in the last five weeks, on expectations that the Federal Reserve would raise interest rates multiple times in 2022, starting in March, forcing bond markets to sell down.

Weekly Cryptocurrency Summary – Ripple (XRP/USD)

The XRP/USD coin is currently trading in the bearish zone near the 0.75401 mark, failing to reverse its downward trend. On the day, the price of Ripple’s XRP fell 1.44 percent. After minutes from the Federal Reserve’s most recent meeting indicated the monetary authority is leaning toward more aggressive policy action, Ripple’s XRP fell to an intraday low of $0.72996, sapping investor appetite for riskier assets and contributing to crypto coin losses.

In the meantime, the risk-off mood in the crypto sector tends to have a further negative impact on the XRP/USD coin. After losing temporary support at around $0.75, the price of Ripple (XRP) has been under heavy selling pressure. Even as anxiety sweeps the entire market, the XRP price prediction is firmly on the downside. The Crypto Fear and Greed Index is at 18/100, indicating extreme fear, which indicates that investors are too concerned.

As the SEC vs. Ripple Labs case moves forward into 2022, many in the XRP community expect the next court update to be around Jan. 19. However, crypto observers were taken aback when they read the SEC’s recent filing, which strikes at one of the founding pillars of Ripple’s case.

The ongoing dollar is selling bias, on the other hand, is helping the XRP/USD currencies recover some of their losses. For example, the dollar was trading lower in Asia on Friday morning. If the following US jobs report justifies early Fed rate hikes, the losses could be short-lived. On Tuesday, the dollar hit a five-year high against the yen, reaching 116.35, but it has since fallen. The dollar has gained around 0.7 percent against the yen this week and about 2.7 percent in the preceding five weeks, on expectations that the Federal Reserve will raise interest rates many times in 2022, beginning in March.

Weekly Cryptocurrency Summary – DOGECOIN (DOGE/USD)

The DOGE/USD currency pair has been flashing red since the start of the day. Even though AMC Theatres has confirmed that Dogecoin and Shiba Inu Payments are accepted, Dogecoin’s bearish price action is gaining traction. AMC, the world’s largest movie theatre chain, is getting ready to accept meme cryptocurrencies like Dogecoin (DOGE) and Shiba Inu (SHIB) shortly. The CEO of AMC Theatres, Adam Aron, made the announcement and updated his company’s decision to accept these meme coins. AMC Theatres, also known as AMC Entertainment Holdings, is the largest movie exhibition corporation in the United States, Europe, and the rest of the globe. Corporations around the world own around 950 theatres and 10,500 screens.

The current Dogecoin price is $0.154079, with a trading volume of $785,506,252 in the last 24 hours. Dogecoin has lost 2.13 percent of its value in the last 24 hours. With a live market cap of $20,441,748,448, the current market ranking is #12. It has a circulating supply of 132,670,764,300 DOGE coins with no maximum supply.

The Dogecoin Foundation, which was recently restored, has issued a trail map, which it prefers the term “roadmap” since it better symbolizes Dogecoin’s status as a community-driven and open-source project. A proposal in the document that would see the Dogecoin blockchain team up with Elon Musk’s extraterrestrial internet provider Starlink to enable Dogecoin transactions in faraway regions is particularly impressive.

According to the Dogecoin Foundation, the initiative’s details, which is suitably titled RadioDoge (Starlink + Radio nodes for remote places), will be revealed as it takes shape. A Starlink-Dogecoin (DOGE) partnership would be tremendous. The announcement sparked some interest in the Dogecoin community. Dogecoin enthusiast Matt Wallace, a cryptocurrency YouTuber, and ardent Dogecoin enthusiast, believes the integration will make Dogecoin “unstoppable.”