We’re coming to the end of a fairly bearish week not only in crypto, but other markets as well (with the exception of the bond market, of course). As every week, let's start by looking at action in the markets and then diving into developments here at NewsCrypto.
The price has been in a downtrend basically for the whole week. Looking at the chart we can see that the price plunged on Wednesday, after the release of Minutes of the Federal Open Market Committee, which were considerably more hawkish than expected. Having re-confirmed their plans to proceed with tapering and increasing interest rates in 2022, cryptocurrency markets along with equities markets fell under pressure.
As the stock market experienced a correction, Bitcoin followed suit by dropping below $42,500. This triggered a cascade of liquidations that took out more than $318 million in BTC positions. The bearish action continued on Thursday and Friday, when the price almost touched the $41,000 level. This caused the market to become the most fearful since July 2021, when Bitcoin was trading around $33,000. The Crypto Fear and Greed Index halved during the dip to 15% deep within the Index’s “extreme fear” zone. On Saturday the price managed to shortly breach the $41,000 support, which caused the Crypto Fear and Greed Index to fall as low as 10%. The price rather quickly managed to back above the important level, consolidating around the $42k level.
When it comes to major headlines from the crypto news, there have been quite a few, but let’s focus only on the most important. On Wednesday the second largest country in the world when it comes to Bitcoin mining hash rate - Kazakhstan - experienced unparalleled political unrest because of the sharp rise in fuel prices. The government resigned, but not before the state-owned internet provider shut down the nation's internet, which caused a blow to the mining activity in the country. Bitcoin network’s overall hash rate declined 13,4% in mere hours after the shutdown. Since there is no timeline yet as to when the internet will switch back on, we can only hope the circumstances normalize as soon as possible.
Now let’s look at developments here at NewsCrypto. The most important development of this week is the upgrade of our proprietary AI Sentiment price prediction tool. It has been improved with an enhanced algorithm, as well as new timeframes. Instead of going solely over news headlines as it used to, it also reads more extensive articles to ensure predictions are spot on. On top of that it also takes into account technical analysis to make sure discrepancies between sentiment and technicals don't deteriorate predictions.
This week we also distributed 20,000 NWC tokens to 100 randomly selected participants that transferred their NWC to a non-custodial wallet (NewsCrypto Mobile Wallet, Solar, MetaMask etc.) with 200 NWC tokens each. I want to thank everybody who participated, and congratulate those that received prizes.
This week we also shared an article which covered 5 trends that could take off in the upcoming year so you can secure the highest gains and maximize your returns. To celebrate the start of 2022 we’ve also given our community an opportunity to join our Pro Tier for 22% off with the promo code NWC2022. This way you can get access to professional tools at a fraction of the price. Best value for the money guaranteed. Learn more about our Professional Tier here.
Having wrapped up the first week in the new year, I wish everybody a successful, happy and joyful 2022. I hope you enjoy the rest of your day and don’t forget to check my thoughts about the action in the markets and developments here at NewsCrypto at the end of next week.