Cryptocurrency Prices: Crypto Week at a Glance: Deep Digital Basket Correction Spooks Investors

The cryptocurrency market is notorious for going through volatile correction cycles. Last week was one of those deep corrections with double digit declines. From a technical point of view, the cryptocurrency market could be heading for a further decline. The bears are quite active right now.

Although this may seem like a difficult situation for many investors, it is important to understand that the real value creation occurs during downturns. Most of the best cryptos are said to be available at a discount right now. Investing in themes built around ideas might be a prudent approach.

The largest cryptocurrency by market capitalization, Bitcoin, has surged in its market dominance. BTC dominance now accounts for over 41% of the total crypto market cap of approximately $1.6 trillion.

From a macroeconomic perspective, there have been several interesting events. In its biggest acquisition ever, Microsoft is set to buy Activision Blizzard in an all-cash deal worth nearly $69 billion. Activision Blizzard is the company behind the hit video game franchises Call of Duty and World of Warcraft, among others.

Satya Nadella, CEO of Microsoft, believes that the game “will play a key role in the development of metaverse platforms”. This deal, Microsoft’s largest acquisition to date, is expected to close in 2023. It’s a massive step toward global adoption of the Metaverse.

It’s been an interesting week for Sultan Gustaf Al Ghozali, a 22-year-old university student from Indonesia, as he made his fortune selling nearly 1,000 selfies of himself as NFTs, on OpenSea. He first took these selfies documenting his college life, spanning nearly 5 years.

Initially priced at $3 each, Ghozali didn’t expect them to be money grabbers, but a way to earn passive income. To everyone’s surprise, Ghozali became an unexpected near-millionaire thanks to the auction of his NFTs, as users took the NFTs to a total trade volume of 317 ETH (~$880,000).

An ETH miner struck gold mining a block on his own, receiving a reward of around $540,000 (168 ETH), beating the average block reward of 4 ETH by 42 times. The miner was operating through the 2Miners: Solo pool.

This is the third such instance in the past two weeks where individual crypto miners have reaped big rewards. Earlier, two individual miners from anonymous solo mining Solo CK mined two blocks, each winning over $266,000. The odds of two individual miners achieving the same feat in the same week have been estimated at 1 in a billion.

There has been an interesting build up around the Indian crypto ecosystem with the Union budget getting closer. There are several speculations about what could be proposed by the Indian government. It was previously stated that there could be a classification of cryptocurrencies based on use cases. On the other hand, given that India has 15-20 million crypto investors, the Indian crypto industry would be very interested in understanding the government’s stance on taxing the buying and selling of cryptos. Considering these aspects in the upcoming budget may encourage Indians to begin their crypto journeys, driving our $5 trillion economic vision.

In terms of price movement, all of the top 50 cryptocurrencies corrected a little. Near Protocol, Solana, Polkadot, Shiba Inu have seen a significant decline over the past week. It would be prudent not to engage in aggressive trades at this time. Long-term investors are better off investing small amounts and averaging the dollar cost in projects that are strongly believed in. The coming week could be pivotal for the cryptocurrency market in terms of momentum.

(The author, Edul Patel, is CEO and co-founder of Mudrex. Opinions are his own)


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