🟢 The cryptocurrency market showed impressive growth over the last week. Crypto market capitalization rose 10.2% to $1.170 trillion. Market optimism was also driven by a wave of new applications for spot ETFs from BlackRock, Wisdomtree, and Invesco, among others. BTC rose 24% over the week. Altcoin has also begun to recover, but slowly so far. Bitcoin’s dominance exceeded 50% of the total market capitalization of cryptocurrencies for the first time since April 2021.
But don’t get too emotional, as cryptocurrencies have not passed their key resistances. For growth to continue, increased volume is needed to push prices up. Otherwise, short-term whales will be able to sell prices down. The 30-day volatility has also increased but is not yet at extremes. For this reason, strong moves are expected going forward.
🔴 The situation in the stock market is very different from the cryptocurrency market. In the last review, we warned about a possible local correction — it happened. BBG reports that this week was the worst for global stocks since March 2023.
The S&P 500 fell 1.28% and the Nasdaq fell 2.06%. Technology stocks have been hit. Market participants are increasingly feeling the overheating of such stocks. Only in NVDA during the last 2 weeks, five directors of the company sold 289,257 shares for a total amount of more than $120 million. A lot of indicators show that the stock market is globally overbought.
Also a cause for concern was J. Powell, who in his speech to the Joint Economic Committee in Washington said that monetary tightening is not yet over, and the regulator is not going to lower the rate in 2023.
All in all, it has been a pretty volatile week in the high-risk asset markets. Next week will likely continue that trend. It is recommended to pay special attention to risk management.
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