Bitcoin reaches 5-month high stalls, Fed increases interest rates as expected, optimism (op) leads defi rally: the summary of this week

Bitcoin reaches 5-month high stalls, Fed increases interest rates as expected, optimism (op) leads defi rally: the summary of this week

In the past seven days, the entire market capitalization of cryptocurrency has increased by around $ 35 billion, and the industry continues to recover from the large number of bankruptcies in 2022.

Some argue that the pace of recovery slows down and that this could be the reason for a further declining reversal. Others argue optimistically because they expect the US Federal Reserve to change their monetary policy and slow down the rising interest rates. This is supported by the FOMC session this week when the Fed raises the interest by 25 basis points-just as many expected. This had a positive effect on the overall markets.

Bitcoin rose to a high of over $ 24,000 for the first time since August 2022, while the rest of the market also increased. Since then there has been a correction, and at the time of writing this article, BTC is traded at around $ 23,500, which corresponds to an increase of 2.7 % for the week.

However, the increase in BTC's dominance has slowed down in the past few weeks, which indicates that old coins begin to catch up. Some of the coins with greater capitalization, such as Fantom (FTM), have increased by 30 % compared to the weekly newspaper. Atom has increased by 15 %, while avalanche has increased by 17.4 %.

The area of ​​decentralized finances is also on the rise, with Ethereum Layer Two scaling solution Optimism at the top. His native cryptocurrency - surgery - has risen by a whopping 45 % in the past seven days alone, which brings its total profits to more than 230 % for the month.

Overall, the prevailing market mood in January has also improved enormously. At the moment it is at "Greed" after it was caught in the "fear" and "extreme fear" zone for several months. It is interesting to see whether the positive trend will continue in the following days.

market data

Market capitalization: $ 1128 billion | 24h volume: 133b | BTC dominance: 40.4 %

Bitcoin: 23.636 $ (+2.7 %) | ETH: 1.666 $ (+4 %) | bnb : $ 332 (+9%)

Metamask presents new data protection functions for crypto wallets. Metamask, one of the leading self-protection wallets for cryptocurrencies, presented several data protection functions. This reacted to the increasing criticism that the company has received in the past few weeks.

Meta lost $ 13.7 billion in 2022 through the Meta-Verse initiative. The Tech-Riese and Social Media Mogul Meta (formerly: Facebook) lost a whopping $ 13.7 billion in 2022 through its Meta-Severse initiative. Other tech giants also missed their income for the last quarter of 2022.

OP token from Optimism achieves a record high of almost $ 3 after a new basic rock proposal. op of Optimism was one of the best performers of the past week and has recorded an increase of around 40 %in the past seven days alone. The cryptocurrency increased by around 230 % last month.

$ 110 million stolen from the defi protocols Bonqdao and Allianceblock. This week was not without a lot of bad news, since another group of Defi protocols-Bonqdao and Allianceblock-were hacked for a remarkable $ 110 million.

Great Britain will enforce "robust" standards in the crypto industry The United Kingdom will introduce "robust, transparent and fair standards" for the country's cryptocurrency industry. The urge to strict regulations comes in response to the FTX scandal.

How Bitcoin reacted to the highly expected FOMC session in January. The US Federal Reserve has raised the interest rates by 25 basis points. This corresponded to expectations and, as a result, the markets recovered. Bitcoin followed this example and broke the $ 24,000 mark for the first time in five months.

diagrams

This week we have a chart analysis from Ethereum, Rippletecardano, Polygon and Fantom - click here for full price analysis.

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