The crypto market started off the week slowly due to the holiday season but picked up a pace later in the week. Bitcoin began trading at the US$16,584 level. It has been trading in a narrow range between $16,256 and $17,061 in recent days, indicating a lack of strong movement from either bulls or bears.
On Thursday, BTC started consolidating above the $16,800 level as market volatility remained high following the release of the Federal Open Market Committee’s minutes. The bank expects a more aggressive rise in inflation to be at 3.5% this year, which is higher than expected. Bitcoin declined by nearly 75% since its all-time high of US$69,000 in November 2021. In the past 24 hours, BTC has traded above the US$16,900 level. Resistance level for BTC is at $17,000. However, a clear move above the US$17,000 level might create a sense of confidence among the bulls to move further in value in the coming week.
On the other hand, Ethereum also consolidated marginally with momentum on Thursday. However, despite a small drop, sentiment remains somewhat bullish as ETH continues to trade above the US$1,250 level. Other major cryptocurrencies also spend much of this week in a similar trend to BTC and ETH.
In an interesting turn of events, the UK will soon enforce a tax exemption for foreign investors purchasing crypto through local investment managers or brokers. The tax break, announced in December, is a part of Prime Minister Rishi Sunak’s plans to turn the U.K. into a crypto hub.
The Korean tech giant LG has made an announcement relating to its metaverse ambitions at the 2023 Consumer Electronics Show. NFT enthusiasts can now use a service known as Blade Wallet to buy, sell, and trade their digital artwork at home using their LG smart via the company’s LG Art Lab platform.
Jared Grey, CEO of the decentralized exchange SushiSwap, has plans to redesign the tokenomics of SushiSwap. The new tokenomics aims to boost liquidity and decentralization in the platform and strengthen the treasury reserves to ensure continual operation and development, as per Grey.
The Dogecoin Foundation has announced a new fund of 5 million for Dogecoin Core developers to promote the Dogecoin ecosystem further in the new year. According to the Dogecoin foundation, the fund will be held in a new multi-signature wallet managed by its members and needs three out of five signatures from Dogecoin Core developers. These custodians will not have rights to the funds aside from managing the release.
Coming to the price action, among the top 100 cryptos by market cap, here are the best and worst-performing cryptos over the past week:
Top 5 crypto gainers during the week:
1. Lido DAO is up by 55%
2. Solana is up by 35%
3. Ethereum Classic is up by 29%
4. Frax Share is up by 23%
5. NEAR Protocol is up by 23%
Top 5 crypto losers this week:
1. Neutrino USD is down by 8%
2. Huobi Token is down by 7%
3. TRON is down by 4%
4. Internet Computer is down by 3%
5. UNUS SED LEO is down by 2%
(The author, Edul Patel, CEO and Co-founder of Mudrex, a global crypto investing platform)