money.P-media – US Dollar Weakens, Investors Invade Crypto Markets. The movement of the crypto market on Wednesday, July 20, 2022 was enough to make crypto investors smile. This is because the crypto market is still in the green zone with a significant increase after the correction in the past.
However, on Thursday afternoon (7/21/2022) the crypto market corrected a bit again. It can be seen from the ranks of the top cryptocurrencies which are starting to experience a slight decline.
Tokocrypto trader, Afid Sugiono, saw investors rushing back into the crypto market due to the weakening performance of the US dollar, which sparked buying enthusiasm for risky asset instruments, including stocks. The good performance is also reflected in the movement of the US stock market.
“Investors seem to be ignoring the potential for a US economic recession with the indicator of the value of the US dollar continuing to weaken. Then, they don’t want to go through the bullish phase of BTC which eventually leads to a series of buying actions,” Afid said in a press release, quoted Thursday, July 21, 2022.
“However, on the other hand there are investors who are finally tempted to immediately realize profit taking, so that the current market movement is rather flat,” he continued.
Afid explained that investors also do not want to be too optimistic about entering the crypto market because they prefer to wait for the results of the meeting of the US central bank, The Fed, which will take place from 27 to 28 July.
Nevertheless, it seems that the Fed will be consistent with its commitment to raise its benchmark interest rate by 75 basis points this month.
Positive Sentiment Causes Bullish Market
In general, Afid explained that the strong rally in crypto assets in the middle of this week was caused by several important factors. First, the lack of macroeconomic sentiment and geopolitical tensions made investors take advantage of buying actions.
“Investors feel that the financial performance of several financial issuers in the US stock market which is above expectations is an indication that the US economy is actually fairly solid. Moreover, the value of the US dollar has also weakened so that it arouses market enthusiasm,” explained Afid.
The second thing, from the crypto ecosystem factor. Investors welcomed the announcement regarding the ETH network upgrade date, The Merge, which is scheduled for completion on September 19, 2022. As a result, the ETH and Ethereum Classic (ETC) markets have experienced a short squeeze for the past few days.
In addition, there is also good news regarding the Polygon network, namely Walt Disney’s intention to support the development of Web 3 Polygon and plans to launch a network update that is predicted to be called Hermez.
The third factor is technically, the price of BTC that broke above the psychological level of USD 22,000 made market participants moved to carry out accumulation actions. As a result, now the crypto market capitalization value has successfully returned to above USD 1 trillion.
Apart from indications from the Fear and Greed Index, Bitcoin trading volume appears to be running normally after the massive spike recorded last June. Currently, the sentiment is quite improving even though it is still in “Extreme Fear” status in the crypto market.
BTC currently has the closest support at the level of USD 22,000 with an immediate upside target of USD 23,600 to USD 24,500. Bitcoin (BTC) is struggling for the USD 24,000 level as a break of it could lead to further gains.
However, in case of bearish pressure and a return below USD 22,000 could push the price further
Crypto Prices Thursday Morning 21 July 2022
Previously, the price of bitcoin and other top cryptocurrencies was observed to experience mixed movements on Thursday (21/7/2022) trading. The majority of the top cryptocurrencies that had strengthened, now have to weaken again
Based on data from Coinmarketcap, Thursday (21/7/2022) morning, the crypto with the largest market capitalization, Bitcoin (BTC) edged up 0.09 percent in 24 hours and 18.53 percent a week.
Currently, the bitcoin price is at the level of USD 23,582 per coin or equivalent to IDR 353.1 million (assuming an exchange rate of IDR 14,974 per US dollar).
Ethereum (ETH) unfortunately has to return to the red zone. Over the past 24 hours, ETH has lost 1.77 percent, but is still up 42.19 percent for the week. That way, ETH is currently at the level of USD 1,546 per coin.
The next cryptocurrency, Binance coin (BNB) also weakened today. In the last 24 hours BNB weakened 3.24 percent. But still up 15.94 percent a week. This makes BNB priced at USD 261.95 per coin.
Then Cardano (ADA) this morning also had to return to the red zone. In the past day the ADA fell 4.22 percent, but is still up 17.34 percent on the week. Thus, ADA is at USD 0.4988 per coin
Other Crypto Prices
As for Solana (SOL), who was unable to withstand the strengthening, he had to weaken again. During the last one day SOL corrected 5.91 percent, but still skyrocketed 26.50 percent a week. Currently, the price of SOL is at the level of USD 43.13 per coin.
XRP also corrected again this morning. XRP weakened 2.71 percent in the last 24 hours, but still strengthened quite high at 13.36 percent in the week. That way, XRP is now priced at USD 0.3649 per coin.
Stablecoin Tether (USDT) and USD coin (USDC), both weakened 0.01 percent today. By doing so, the price of USDC fell slightly to the level of USD 0.9999 and USDT still held at the level of USD 1.00.
While Binance USD (BUSD) weakened 0.18 percent in the last 24 hours, which made its price drop slightly to as low as USD 0.9987.
As for the overall crypto market capitalization in the last 24 hours, it still stands at USD 1 billion.