Big Buying Activity Boosting Bitcoin, Cardano, and Polkadot Today


What happened

The shift in sentiment that we have seen occurring among major cryptocurrencies appears to be continuing this week. Today, Bitcoin (BTC -1.55%), gimbal (ADA -2.52%)and Spotted (POINT -3.24%) each surged higher to start the week, building on the gains these tokens have seen since the mid-June low. As of 2 p.m. ET, Bitcoin, Cardano, and Polkadot have appreciated 3.5%, 4.9%, and 6.8%, respectively, over the past 24 hours.

Bitcoin actually rallied more aggressively this morning, breaking above $25,000 for the first time since June. The general sentiment of the market, which has taken a bullish direction as investors focus on catalysts such as EthereumThe upcoming merger of The Merge on headwinds related to insolvencies and structural issues in this space, seems to be the key factor Bitcoin investors care about right now.

Cardano has seen continued interest as the network nears its own key update: its Vasil hard fork. Founder Charles Hoskinson reiterated that this upgrade is unlikely to be delayed further, noting no key issues with testing so far.

That said, today’s rise in Polkadot is rather intriguing to consider, as a Polkadot-backed stablecoin, the Acala Dollar (aUSD), was recently hacked, losing 99% of its value. As with many ecosystem-focused crypto projects, it seems investors are paying less attention to these headlines, opting to focus on Polkadot’s ties to Ethereum in this market rally.

So what

It is truly amazing how much the market sentiment has changed in the crypto sector. Tokens such as Polkadot that encounter a hack, or tokens like Cardano that delay their upgrades, are not put in the penalty box by investors. It’s risky again, with speculators, traders and investors all jumping on board.

The multi-week nature of this crypto market rally has some investors thinking that the bottom may have been reached. Whether this buying activity can hold up in the face of upcoming rate hikes and the potential for macro headwinds remains uncertain. However, this is the most exuberant market since last year, of course.

Now what

We are in an interesting period, during which most investors have become self-styled economists. As the Federal Reserve accelerated its rate hike schedule, various risky asset classes (like crypto) were hit hard in the first half of this year. However, given the lag between the Fed’s last rate decision (July 27) and its next decision (September 21), there is a time frame in which investors can ignore the rate hike talks and buy the cut. .

That said, by the end of the year, more headwinds could materialize if the Fed doesn’t stop raising rates, as most market participants expect. This could be a Goldilocks period, which provides a major bear market rally.

Alternatively, this rally could continue if expectations turn out to be correct. And if the major in-store upgrades for Ethereum and Cardano prove successful, this rally may just be the start. Time will tell us.


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