The cryptocurrency market was nothing short of a financial soap opera in 2022, but there is one essential location where the drama has calmed substantially—the actual prices of the main digital tokens themselves.
Bitcoin is up over 8% over the previous three business days and is holding at $20,000, while Ethereum is up 20% and is hanging around $1,000.
There are signs of a more traditional market in the crypto market
The relative stability on the charts raises expectations that the contagion has passed after the shocking fall of the Terra token.
The great majority of forced sales, according to Classnode Lead Analyst James Check, have already occurred, and the crypto market appears to be quite solid.
At the moment, two major sources of prospective sellers remain bitcoin miners, who have seen the value of their equipment plummet as the token’s price falls, and traders, who will sell risky assets of all kinds if the stock market begins to fall in price again.
“New catalysts are needed to push prices higher, but the strong performance of second-tier tokens like Matic and Aave is an encouraging sign that the market may be recovering,” said James Malcolm, head of FX and crypto research at UBS.