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Bitcoin and Ethereum post small gains, but tough uphill battle looms

Published 14/11/2022, 09:25
Bitcoin and Ethereum post small gains, but tough uphill battle looms
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Proactive Investors - Bitcoin is hovering close to US$16,700, which is still far below pre-crash levels, but a 3% improvement against the day.

The benchmark cryptocurrency has a strong resistance wall at US$16,800 before bulls can attempt to reclaim ground ceded following the devastating FTX collapse.

Ethereum (ETH) is changing hands at US$1,260, which is a 3% improvement on the day, yet 20% down week on week.

Can bitcoin (BTC) reclaim lost ground? – Source: currency.com

There is a lot of ground for Ethereum to cover following last week’s market rout, but with virtually unchanged fundamentals and liquidity among other primary exchanges, the bulls have strong support behind them.

As for the rest of the large-cap altcoin space, Solana remains battered and bruised, having lost over half of its market capitalisation due to the blockchain’s exposure to the now-bankrupt FTX exchange.

Ripple (XRP) and Polygon (MATIC) remain at a 20% week-on-week discount, while BNB, Cardano (ADA) and Polkadot (DOT) have not fared much better.

Meme coins Dogecoin (DOGE) and Shiba Inu (SHIB), which were gutted in last week’s turmoil, remain close to five-month lows.

Among the sea of red, one altcoin has made substantial gains, and for good reason.

TWT token, which gives holders certain benefits when using the Trust Wallet third-party crypto wallet, is up over 70% week on week after rising 30% in the past day alone.

Interest in third-party wallets, which allows users to retain custody of their crypto assets, has been significantly renewed following the FTX collapse.

TWT now has a market cap of US$850mln, with highly liquid trading pairs found on Binance.

More surprising is the 15% rally enjoyed by China-based crypto exchange KuCoin’s KCS token, at a time when trust in intermediaries is surely at an all-time low.

However, with FTX out of the picture, crypto traders are likely seeking out alternative platforms, boding well for KuCoin, Huobi and other mid-tier exchanges in the short term.

Global market capitalisation across the whole crypto space is just shy of US$840bn, while total value locked across all decentralised finance (DeFi) protocols currently stands at US$43.5bn.

Read more on Proactive Investors UK

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