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After experiencing a brief decoupling earlier last week, the broader crypto market and major U.S. stock indices seem to be moving in tandem again. The crypto market has been falling for a third day straight amid fears that rising energy costs would cripple the global economy. As of the time of writing, BTC is trading below the $38.5k resistance zone and the 100-hourly moving average after suffering some minor losses over the past 24 hours. A bearish descending triangle, with its upper bound near the $39k level, has begun to take shape on BTC's hourly chart, suggesting that the largest cryptocurrency by market cap may very well dip below past support levels again if it fails to clear said $39k level.
In a similar vein, ETH is currently trading just above the $2,500 mark after experiencing some marginal losses from 24 hours ago, whilst most major altcoins are also still struggling to flip green. Additionally, the NFT market seems to have stagnated in a few different aspects, with search interests (for the term "NFT") having diminished pretty significantly alongside trading volume after the NFT space's record-breaking run between December of last year to early February of this year. Despite this, however, the number of unique wallets purchasing NFTs still remains relatively high. Finally, and going back to BTC, if we are to observe the on-chain behaviors of long-term BTC holders (LTH), we will realize that their degree of spending has actually been on a downward trend since the start of this year. This, coupled with the fact that we have also yet to witness any major capitulation events for this group of market participants like those that were observed at previous cyclical bottoms, means that a BTC supply shock is likely to be on the cards in the near-to-mid-term. However, and when we consider the souring macroeconomic and geopolitical conditions, the risk of a sudden massive capitulation is definitely still lurking in the shadows.
On Monday, it was revealed that a team of researchers from Stanford University's applied cryptography research group are currently working hard on Espresso Systems, a new Layer 1 Blockchain for web3 applications that prioritizes user privacy and decentralization. Espresso will attempt to solve the blockchain trilemma by increasing throughput and lowering gas fees, whilst also leveraging on zero-knowledge proofs to optimize for privacy and scalability. This exciting project recently raised $32 million throughout the course of its funding rounds, and is definitely one to watch out for in the future.