3 emerging crypto trends to keep an eye on while Bitcoin price consolidates

Bitcoin’s (BTC), price plunged this week as a hotter than expected consumer price index (CPI), showed that high inflation continues to be a problem despite an increase in interest rates from the United States Federal Reserve. Interestingly, investors seemed to have priced in the negative market reaction to a high CPI print. BTC and Ether (ETH) prices recovered all intraday losses and closed the day in the green.

A quick glance at Bitcoin’s market structure reveals that the price is still trading in the same price range as it has for the past 122 day, despite the post-CPI print decline. Ray Salmond, a Cointelegraph market analyst, reported that Bitcoin’s futures open interests are at an unprecedented high and its volatility is near record lows.

These indicators and others have been used to predict the direction of price movements. However, history has shown that it is almost impossible to accurately predict these moves.

There are many indicators that Bitcoin may be making a significant price move, but Bitcoin is doing the same thing for the past 4.5 month. This being the case, perhaps it’s time to look elsewhere for emerging trends or potential opportunities.

These are some data points that have captivated me for a long time.

There will be new rotations

ETH’s value has dropped in the post-Merge era and now reflects the bearish market trend. ETH’s value has fallen 30% since the Merge. It’s probable that a lot of the speculative capital which backed the bullish Merge narrative are now in stablecoins searching for the next investment opportunity.

ETH has been an asymmetrical performer over the past four months. Cosmos (ATOM), however, defied the market downtrend with a massive rally of $5.40 to $15.85. Cointelegraph covered the oversold conditions and the hype surrounding Cosmos 2.0 as the reasons for the bullish price action in altcoin. However, this chart continues to capture me imagination.

ATOM emissions schedule (old version vs. the new). Source: Cosmos Hub

The revised Cosmos whitepaper states that the current supply of ATOM tokens will adjust dynamically based on the demand and supply for its staking. The chart shows that when Cosmos 2.0 “kicks into” for the first 10 month, issuances of ATOM tokens are high. However, after the 36th month, asset deflation occurs.

ATOM/USDT 3-day chart. Source: TradingView

Technical analysis suggests that ATOM’s prices have reached a local peak. The months preceding Cosmos 2.0 were a “buy-the-rumor, sell-the news” type event. However, it will be interesting for investors to see how ATOM’s market price changes as they approach month 20 in the diagram.

Similar: Price analysis 10/14 SPX, DXY. BTC, ETH. BNB, XRP. ADA. SOL. DOGE. MATIC.

Keep an eye out for activity on the Network

After Merge, Ether emissions drop to zero Source: Delphi Digital

The Ethereum Merge has seen Ether emissions drop by 97%. While the price is down, investors should keep an eye on Ethereum network activity and developments with ETH staking across Decentralized Finance (DeFi), institutional products and any spikes of gas (connected with network activity).

Supply dynamics for Ether Source: Delphi Digital

Although the price may succumb to bearish pressure for the near term, it is possible that ETH’s value could rise if the market turns around if new trends are triggered by increased use of DeFi products.

BTC price action after the merger will likely continue to be king

Although there may be new trends in altcoins, it is important to keep in mind the larger context within which crypto assets are located. Global economies are in trouble, and high inflation continues to be a problem in many countries. The bond market is in turmoil and there is a growing debt crisis. Cryptocurrencies are risk-on assets and are extremely volatile. Even the strongest price trends in crypto, whether backed by fundamentals, are susceptible to the volatility of macro factors like geopolitics, equities markets and other market events that affect investors’ sentiment.

Keep in mind that Bitcoin is still the largest crypto asset in terms of market capitalization. Any sharp movements in BTC’s price will either support or suppress micro trends that are gaining momentum in the market. Although there is always the chance of Bitcoin falling sharply, traders should still calculate their investment size according to how much risk they are willing to take. While multiple metrics may support long positions in different crypto assets, it seems too early to fully reap the benefits.

Big Smokey, author of The Humble Pontificator Substack as well as resident newsletter author at Cointelegraph, wrote this newsletter. Big Smokey will be writing market insights, trending tips, analyses, and early-bird research about emerging trends in the crypto market every Friday.

com. You should do your research before making any investment or trading decision.

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Eileen Wilson

Eileen Wilson –Technology and Energy My Name is Eileen Wilson with more than 5 years of experience in the Stock market industry, I am energetic about Technology news, started my career as an author then, later climbing my way up towards success into senior positions. I can consider myself as the backbone behind the success and growth of topmagazinewire.com with a dream to expand the reach out of the industry on a global scale. I am also a contributor and an editor of the Technology and Energy category. I experienced a critical analysis of companies and extracted the most noteworthy information for our vibrant investor network.

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