Weekly Watch on Crypto coins: After a turbulent week marked by the collapse in value of TerraUSD, a so-called stablecoin, cryptocurrency prices settled on Friday, with bitcoin recovering from a 16-month low.
Crypto assets have been swept up in widespread selling of hazardous investments due to concerns about rising inflation and interest rates, but have begun to stabilise. Although the crypto market's near-term future is difficult to forecast, the worst may be over, according to Juan Perez, director of trading at Monex USA in Washington. "Perhaps now that all the hurdles to global development, as well as monetary tightening, have been removed, we will begin to witness upward swings," he said.
Bitcoin, the most valuable cryptocurrency, last surged 4.85 percent to USD29,925, bouncing back from a low of USD25,400 set on Thursday in December 2020. Despite hitting a high of just under USD31,000 on Friday, bitcoin remains considerably behind week-earlier levels of nearly USD40,000, and it is on track for a record seventh consecutive weekly loss unless there is a massive weekend surge. Bitcoin, according to Stifel Chief Equity Strategist Barry Bannister, still has room to fall to around USD15,000. Bitcoin is also GDP-sensitive, as it falls when the PMI Manufacturing index declines, as we forecast (until the third quarter of 2022), implying that a final, capitulatory bitcoin drop is still possible," he added.
Ether, the second most valuable cryptocurrency by market capitalization, rose 6.48 percent to USD2,051. Tether, the largest stablecoin, was back at USD1 after dipping to 95 cents on Thursday, according to its developers. According to CoinGecko data, the crypto sector's global market capitalization increased 6.6 percent to USD1.35 trillion on Friday.