Crypto markets start the week with a shade of volatility

CRYPTOCURRENCY markets are down across the board, with many altcoins seeing sharp declines over the past 24 hours.

The Sandbox (SAND), Near Protocol (NEAR), and Algorand (ALGO) are among the biggest losers, while Bitcoin is down marginally by 0.9%, trading just below $94,000. Ethereum (ETH) has dropped 2%, with XRP also in the red overnight but maintaining weekly gains.

Two competing narratives could be weighing on market sentiment, analysts note. Donald Trump’s inauguration is next week, which could bring crypto-related announcements. Meanwhile, inflation concerns have re-entered the conversation following stronger-than-expected US economic data, raising questions about the Federal Reserve’s pace of rate cuts this year.

Could Trump’s crypto-positive stance reinvigorate the market, or will tighter monetary policy to combat inflation dampen investor enthusiasm? With the inauguration just a week away, and the Fed’s next meeting at the end of January, all eyes are on signals from Washington and the Fed.

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In the Markets

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Total crypto market cap

$3.26 trillion (-1.48%)

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What Bitcoin did yesterday

Daily high $95,903  |  Daily low $93,330

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Bitcoin market capitalisation

$1.85 trillion (-0.79%)

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Bitcoin 24-hour trading volume

$29.85 billion (+71.78%)

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SP500

+1.54%

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Fear and Greed Index

Neutral

‍Source: Coinmarketcap

The Fear and Greed Index measures volatility, market momentum/ volume, social media, surveys, dominance, and Google search trends to gauge market sentiment.

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Bitcoin Relative Strength Index (RSI) (14)

40

Values of 70 or above indicate that an asset is becoming overbought and may be primed for a trend reversal or experience a correction in price, while 30 or below indicates an oversold or undervalued condition.

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Cautionary Notes

It’s definitely tempting to get swept up in the excitement, but please heed these words of caution: Do your own research, only invest what you can afford, and make good decisions. The indicators contained in this article will hopefully help in this. Remember though, the content of this article is for information purposes only and is not investment advice or any form of recommendation or invitation. The Digital Commonwealth always advises you to obtain your own independent financial advice before investing or trading in cryptocurrency.

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