Bitcoin (BTC), which hit a new year high of US$21650 in the last 24 hours, has effectively erased all losses suffered by the benchmark cryptocurrency in the wake the FTX crash in early November.
Although the BTC/USDT currency pair has fallen to US$21100, the one-hour chart shows stability at that price point. This suggests it could be a support line moving forward.
But, danger could be on the horizon.
Digital Currency Group (DCG), the owner of the US$11bn Grayscale Bitcoin Fund, (GBTC), and stakeholder in hundreds crypto-related projects, suspended dividend payments to help build cash reserves and avoid bankruptcy.
We’ve seen what happens when a crypto sector mainstay goes bust. It is no surprise that investors are still not sufficiently scared.
BTC is still more than 20% higher each week than Ethereum (ETH), which is the second-largest cryptocurrency in terms of market value.
On Tuesday, the ETH/USDT pairing reached a record high of US$1,610 but has since fallen back to US$1,580 after failing to reach pre-FTX highs.
Shiba Inu is currently on a roll, rallying 13% just today, as traders eagerly await the Layer-2 protocol upgrade.
The upgrade, known as the “Shibarium”, will significantly increase Shiba Inu’s scalability in a manner similar to Ethereum’s ongoing upgrades.
After a tie with the Australian Open tennis championship, Metaverse game Decentraland is still the top weekly mover. However, the MANA token of the game, which has drawn down almost 2% yesterday and another 1% today, is beginning to show signs that it’s overbought.
The Sandbox, Decentraland’s main rival, has added 40% to its weekly total.
Compound Finance, Curve (CRV), and Convex Finance are the top movers in decentralised finance (DeFi). All three have increased their weekly revenue by more than 40% each week.
The global crypto market capitalization stands at US$995bn. However, the total value of all DeFi protocols is at an unprecedented US$45.5bn.