It has been over a month and there are still no big developments on the crypto market. Bitcoin has been holding its ground for the past week, with the world waiting for the next price jump. It will have to wait for at least a week more considering the fact that BTC is currently resilient and locked in the lower $40K levels.
While the leading cryptocurrency has shown resilience, others have dropped. The current state of the crypto market is not ideal. Solana, for example, has experienced a drop of 3%, and others such as Ethereum are trading lower than expected too.
There’s still no clear indication on when things might jump ahead, but according to experts, it will still be a great year for crypto.
Global Crypto Market Down
The global crypto market is down and has been for quite a while. In the past 24 hours, it was down by a full percent, sitting just below $2 trillion. What’s concerning is that the value of the market was a bit higher just a day before. The good news is that the total crypto market volume has zoomed in to over $100 trillion, showing that there’s no reason to panic.
Panic has obviously inspired the latest price drops, with Bitcoin unable to get out of the $40,000 lockjaw. The $40K levels were breached early on Monday this week before BTC consolidated. It’s currently trading at just over $41,000, with no major developments on that front. Traders are currently lacking confidence on the market, so the crypto winter may last longer than expected.
Legal surroundings such as India’s ongoing crypto hesitation are delaying the expected price bump too. The growing popularity of crypto around the world has pushed governments to propose new bills and laws. Many countries such as India are at crypto crossroads, and it surely has an effect on the price.
Increasing Interest Rates in the USA A Big Problem
Traders’ lack of confidence took another hit following the Fed’s Open Market Committee Session. New monetary policies suggest that the USA will decrease its balance sheet and increase interest rates this year. Fed’s chairman Jerome Powell is set to appear before the Congress, and all of that has shaken the faith of investors.
On the other side of the world, El Salvador is preparing the launch of the so-called Volcano bonds. They will allow investors to pour BTC in the original Bitcoin City project that El Salvador’s president claims it’s true. It’s surely an ambitious project and should represent the world’s first Bitcoin hub powered by a volcano out of all things. Those kinds of projects can drive Bitcoin’s price up this year and we’re eager to see if this one sees the light of day.
Experts agree on one thing – we haven’t seen the last of cryptocurrencies. The crypto march will continue this year, so there’s no reason to panic. Stick to your guns and keep holding, as the crypto winter might be over soon.