In between much chaos and panic, most leading cryptocurrencies managed to end the first month of Q3 on a positive note. Bitcoin’s rally and it ended up above 19 per cent in July. Ether outperformed most cryptocurrencies to gain 59 per cent. Currencies like Polkadot, Solana, Dogecoin, Shiba Inu and Cardano shot up towards the end of the month. This overall growth helped the cryptocurrency market regain the $1 Trillion market capitalisation.
Last week, we updated you about the Federal Reserve’s meeting and its potential to affect the global crypto market’s performance. Towards the end of the week, the crypto market went on a bullish trajectory. After the Federal Reserve increased interest rates by 0.75 per cent , there was an ease in inflation worries and a recovery in the risk appetite of investors leading to market recovery.
Overall Bitcoin and Ethereum, two market titans participated in a mini-rally on the cryptocurrency market and overall crypto sentiment also turned greener. While Bitcoin has shown a positive sign, the Ethereum Merge is also just around the corner, which results in social media crypto sentiment being sky high. The market seems to be finally recovering after the first shock of the market crash and all the massive problems surrounding Terra (LUNA), Three Arrows Capital, Celsius Network (CEL), Voyager Digital, BlockFi, and others.
If we look at July’s heatmap from Coin360.com, it is easy to see that the market has remained pretty stable and green for the biggest coins by market cap. This data shows performances from 1st to 31st July, 2022. Most popular coins did well. Solana gained 31.12 per cent, Avalanche leaped a whopping 44.18 per cent, XRP rose about 17 per cent while Cardano gained 15.44 per cent.
Another side note is that the Bitcoin Fear & Greed Index has risen to a three-month high of 42/100, indicating that the overall sentiment is growing positive.
This doesn’t come as a surprise since many analysts are suspecting a ‘bullish run’ due soon. In a recent tweet, Material Scientist, creator of on-chain analytics resource Material Indicators, eyed funding rates turning positive. He also mentions that the bear rally might ‘fizzle away’ soon if the current crypto market performance continues.
If historical data is any indication, July has been fairly good in terms of BTC gains. Coinglass’ monthly data can be a proof of the same.
However it will be interesting to see whether the momentum continues in August, especially considering that macroeconomic factors are playing a bigger role now in the overall performance of the cryptocurrency market.
Please note that this is not trading advice. We recommend you to carry out your own research before making any trading decisions. This article is for informational purposes only.