After the turbulence in the first half of 2022, the cryptocurrency market is attempting to sustain the recent short-term gains recorded in July.
As of August 8, the global crypto market capitalization surged to a 1-month high of $1.13 trillion, adding about $18 billion from the $0.95 trillion recorded on July 8, according to CoinMarketCap data.
Bitcoin and Ethereum lead crypto market in gains
Overall major cryptocurrencies turned green after appearing to falter at the start of August. For instance, by press time, flagship cryptocurrency Bitcoin was once again trading slightly above $24,000 after gaining almost 3% in seven days.
Furthermore, second-ranked Ethereum is also on a bullish streak as the community prepares for the Merge upgrade that will transition the blockchain to a Proof-of-Stake (PoS) protocol. By press time, the asset was valued at $1,743, gaining over 3% in a week.
Bitcoin sustains price above $23,000
Bitcoin seems to be holding support above $23,000 after the position appeared to be threatened with the risk of correcting below $20,000.
It is worth mentioning that Bitcoin dropped below $23,000 early Friday before the U.S. Labor Department report. The figures indicated that the U.S. recorded a growth in new jobs, dismissing fears that the economy was slowing further.
An extended slowdown would have triggered the Federal Reserve to implement a steep interest rate hike that might plunge the economy into a recession. The over 500,000 added jobs highlighted the economy’s resilience despite the skyrocketing inflation.
Despite the lingering hard economic times, the market has also recorded a resurgence in the number of institutions taking a stake in the crypto sector. For instance, Asset manager Brevan Howard finalised the largest crypto hedge fund launch involving over $1 billion in assets under management.
Market less impacted by Solana wallet hack
Overall, the past week has been a mix of good and bad news for the cryptocurrency market. For instance, the market has recorded capital inflows despite the high profile hack of the Solana (SOL) network wallet, resulting in over $4 million loss.
However, the crypto industry received some relief after preliminary evidence indicated that the hack might not be Solana’s fault. The root cause of the exploit was identified as compromised private keys.
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