Low trading volumes have been the hallmark of Bitcoin’s price action in recent weeks. The past week did not change the trend, with the January 6 reading of US$14 billion exactly half of what it was at the time in 2022.
Another V word is volatility which has been a Bitcoin hallmark since its inception. But, that is also showing historic lows.
Sadly two Vs do not make a W in this instance. Bitcoin continues to trade sideways at US$16,800, having failed to break above US$17,000 since December 20. But as of January 9, Bitcoin managed to break above $17,000 and is now consolidating around $17,200.
Hawkish Federal Reserve comments, encouraged mainly by unexpected strong employment data (are we not in a recession?) are sure to increase pressure on the BTC/USDT pair, at least in the near term.
Putting it simply: Do not expect a huge rally just yet.
Ethereum (ETH) remained below its own psychological US$1,250 barrier, notably by just a few dollars on the ETH/USDT pair, after closing lower in the past week and continuing with the docile trend. However, on January 9, 2023, the biggest altcoin followed Bitcoin’s lead and is trading above $1,300.
Investors can expect some more ETH downside movement to $1,235 if the current buyers exit the market earlier than expected.
Huobi Token (HT) was the worst performer in the past week, having lost up to 11.5% in the week amid news of layoffs and internal strife at the Seychelles-listed crypto exchange.
On the upside, long-suffering Solana (SOL) holders are still enjoying gains, their bags are now 45% up week over week, while Litecoin (LTC) and Cardano (ADA) are pulling the market up looking to take it out of the crypto winter.
Solana’s rally coincides with the recent airdrop of hit meme coin Bonk on the blockchain, which preceded a considerable uptick in Solana-based trading activity.
Yet Bonk’s time in the spotlight might not last long, it lost 50% of its value within 24 hours as early adopters rushed for the exits.
Global crypto market capitalization now stands at $835 billion, while the total value locked across all decentralized finance protocols is $42 billion.