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Confidence seems to be slowly returning to the cryptocurrency market following the massive dip seen a few weeks ago. The Bitcoin Fear and Greed Index has risen from “extreme fear” to “fear” as sentiment turns slightly more bullish. However, Bitcoin’s volatility remained low, suggesting that options traders were hesitant to take directional bets.
Let’s take a look at some of the past week’s major events.
- Litecoin has launched its highly anticipated Mimblewimble upgrade, enabling more privacy-oriented transactions on the network. Users on the network can opt-in to confidential transactions, improving the coin’s viability as a fungible currency used for everyday transactions. LTC has surged 15% since the network announced the upgrade.
- India’s Finance Minister Nirmala Sitharaman has proposed the introduction of a 30% cryptocurrency tax, targeting all transfers of digital assets. According to the Finance Minister, no deductions will be allowed, except the cost of acquisition. India’s Finance Secretary revealed that the country will not be following El Salvador’s footsteps in declaring cryptocurrencies such as Bitcoin and Ether as legal tender.
- The Wormhole token bridge, which allows users to send and receive cryptocurrencies between Ethereum, Solana, Binance Smart Chain, Polygon, Avalanche, Oasis and Terra has experienced security exploit last week. The hack marked the largest crypto hack so far in 2022, and the second-largest decentralized finance exploit to date.
Bitcoin tackles $40K resistance
Last week, institutional investors cautiously $22 million to Bitcoin funds. However, Ethereum witnessed negative sentiment as ETH funds witnessed outflows for the eighth consecutive week, totaling $27 million.
The portion of Bitcoin supply controlled by short-term holders is beginning to increase after falling to macro price low levels. The short-term holder spent output profit ratio (SOPR) indicates that these investors are beginning to sell at a profit rather than a loss.
Bitcoin’s 7-day volatility saw its lowest level since November 2020 after BTC plummeted toward $33,500. As the leading cryptocurrency trended upwards, it appears that the market has released sufficient pressure.
The crypto market is seeing a significant recovery as investors take advantage of the recent stock market rally and increased risk appetite. Bitcoin price reached its highest level in two weeks, extending above $42,000.
You can plan your crypto trading strategies and ensure that they are executed on time with CoinPanel’s crypto automation features. Using the Full Trade feature, you can set entry, stop-loss, and take-profit orders simultaneously and the orders will be executed once the price levels are hit.