Following several losses during the previous quarter, many looked forward to the present for comfort as they hoped to recover. The first quarter of 2023 is short of expectations as the global cryptocurrency market cap is up by a significant fraction.
It kicked off on January 1 with a valuation of $795 billion. This was also the lowest the crypto market cap dipped as we noticed a gradual increase in value. We observed it slowly climbed above $1 trillion. At the time of writing, it is worth $1.19 trillion; indicating a more than 65% increase over the last three months.
These increases were buoyed by the surge in the prices of different cryptocurrencies. The chart below sheds more light on what transpired during this period.
From the figure above, we noticed that most cryptocurrencies had considerable improvements in prices. One of the top gainers at this time is Solana.
SOL opened the year at $9.96 with investors fearing a drop to $5. However, this never happened as the altcoin started an uptrend. As a result, it peaked at $27 but retraced and is currently worth $20. Nonetheless, the current value depicts a more than 100% change in price.
Another huge gainer is Stacks. The asset opened the year at $0.20 and experienced what many will describe as a massive bullish movement. Due to this, it surged to a high of $1.32. However, it is currently worth less than a dollar. This also represents a more than 300% increase from its opening price.
While the influence of fundamentals was felt all over the market, we will look at how they affected some major asset.
Crypto Top 10s Lead
BTC/USD
Bitcoin opened the year at $16,530. At the time of writing, the top coin is worth $28,291. A few days ago, it flipped the $29k resistance and peaked at $29,390. The current price depicts a lot of rejection at the high which also points to several happenings on indicators.
On the weekly chart, all of the metrics are bullish except the Moving Averages. The 200-week MA and the 50-week MA intercepted in what is described as a death cross. In this situation, many expect a massive downtrend. However, price performance in the first quarter is opposing this notion.
Other indicators like the Moving Average Convergence Divergence remained positive during this period. We noticed the 12-week EMA and the 26-week EMA surge above zero. The Relative Strength Index also gradually pushed above 60.
However, this is not the same sentiment on the daily chart. For example, MACD is currently displaying a bearish convergence with RSI struggling to stay above 60. While the moving averages remain positive. Nonetheless, there is good news.
After paying off its loan to the struggling banking firm Silvergate, business intelligence company MicroStrategy added 6455 more Bitcoins to its holdings, totaling over $150 million. The latest purchase is an expression of the company’s aim of accumulating as many of the asset as possible.
With focus on price, over the last three months, the apex coin is up by more than 70%. This marks the first green quarter since last year.
ETH/USD
Although the crypto top 10 did not experience as many surges as other assets, they had notable increases. Ethereum made the rounds many times over the last three months. This was a result of fresh investment from other firms.
For example, according to a January 19 article by the Australian Financial Review (AFR), the National Australia Bank (NAB) is developing a stablecoin called “AUDN” that would enable corporate customers to settle transactions on blockchain technology using Australian dollars.
The latest investment was based on the Ethereum Virtual Machine (EVM) and GameFi. It received a $20 million investment from EOS Network and may launch next month.
With regards to price, the largest altcoin also had a splendid performance. It kicked off the first quarter at $1,195. A few days, it made an attempt at the $1,900 resistance but stalled at $1,856. As a result, it is currently worth $1,822. These figures represent a more than 50% increase in the value of ETH over the last three months.
Like the previous crypto, indicators are opposing on a weekly scale. For example, the 200-week MA is close to intercepting the 50-week; an impending death cross. Nonetheless, other metrics like MACD and RSI tell a different story. they are both bullish. How will this affect the next quarter?
BNB/USD
Over the past two weeks, Binance coin recorded notable decreases in value. While we may conclude that it barely makes the news, its parent firm is the opposite.
It is in a growing tussle with regulators and other entities that claim it was involved in fraudulent acts. For example, The cryptocurrency exchange Binance has been accused of fraud by some US senators. The senators expressed concerns about the company’s legal and financial standing in a letter to Binance CEO Changpeng Zhao and his American deputy Brian Schroder.
The latest was that for breaking trading and derivative rules, the United States Commodities Futures Trading Commission (CFTC) filed a lawsuit against Binance, its CEO Changpeng Zhao (CZ), and its chief compliance officer Samuel Lim.
Although the parties involved refuted the claims, the effect of the initial panic across all asset related to the company is undeniable.
With respect to price, BNB also had a splendid performance. It reclaimed the $300 resistance and peaked at $347. It also worth noting that asset kicked off the first quarter at $246 and is worth $317 at this time. This signifies a more than 20% increase in value.
The weekly chart depicts BNB struggling. For example, MACD’s 12-week EMA is on the downtrend and may intercept it counterpart during the next quarter. How will prices react?
