Cryptocurrencies start a bearish 2022 — but not all of them
Bitcoin and all the cryptocurrency market had a great performance in 2021. The first cryptocurrency increased by over 109% the last year until its All-Time-High (ATH) in November, and the total crypto market capitalization did it by over 280% [CoinMarketCap]. On the contrary, we’re starting a bearish 2022 for crypto. But we still have some bullish coins.
Bitcoin (BTC) isn’t one of those bullish coins for now, though. This currency has lost over 15% year-to-date (YTD), even missing briefly its support at $40,000 per coin. It’s now doubting around $41,000 per coin, with bad and good predictions for the rest of the year. The fall is probably due to the recent political problems in Kazakhstan, now the second-largest country in Bitcoin mining.
The people in this country are carrying on huge protests for a gas price rise. Due to the events, the government blocked the Internet and mobile networks, which had led to the crypto-miners disconnection. Then, Bitcoin lost around 18% of its hash rate (mining power) starting the year [YCharts].
On the other hand, the U.S. Federal Reserve recently announced that it will cut its amount of bonds and raise interest rates starting this year. As an immediate consequence, Wall Street is now in red numbers and Nasdaq had its worst performance since February 2021. The cryptocurrency market was dragged by it as well, making bearish this 2022.
Aside from Bitcoin, the main ten cryptocurrencies by market cap showed losses starting January. Terra (LUNA) was the most hit, falling by over 28%. Other popular tokens fell equally or even more. Among them, we have SushiSwap (-32%), Axie Infinity (-30%), Aave (-27%), Avalanche (-26%), Monero (-23%), Shiba Inu (-21%), and Basic Attention Token (-20%).
Not everything is bearish in 2022
Luckily, not all the crypto market is bearish this January 2022. Internet Computer (ICP), an Ethereum competitor, raised by over 54% YTD. This was probably due to their new bridge for compatibility with Ethereum. Now, the ERC-20 tokens are fully operable on Dfinity, the native blockchain of ICP. The transfers between the two chains are also possible, opening the doors for the average Ethereum user -including Dapps, DeFi platforms, and NFTs.
Closely following ICP, we have Chainlink (LINK). This token increased by over 42% YTD. According to reports by their team, Chainlink surpassed $75 billion of Total Value Secured (TVS) by the end of 2021, which implies an increase of over 971% compared to the beginning of the year. Additionally, it’s now one of the most mentioned cryptos on Twitter.
Dash (DASH) is the third bullish crypto on the list this time, gaining over 14% YTD. There’s not an evident reason for this, except for a gradual increase in usability and popularity during the last year. According to Cryptwerk, Dash is now accepted as a payment method by at least 1,730 merchants worldwide, which puts it sixth on their Merchants Rating.
Featured Image by Wilfried Pohnke / Pixabay
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Originally published at https://blog.alfa.cash on January 10, 2022.