The prices of Bitcoin, Ethereum and cryptocurrencies with large market caps (big cap) rose again in trading Monday (10/1/2022) morning Indonesian time, although the strengthening still tends to be thin.
Launching data from CoinMarketCap as of 09:00 WIB, only digital coins (tokens) of the stablecoin and Cardano types are traded in the red zone today.
Cardano weakened 1.57% to a price level of US$ 1.17/coin or equivalent to Rp. 16,731/coin (assuming an exchange rate of Rp. 14,300/US$).
While the rest is still green today. Bitcoin edged up 0.07% to a price level of US$ 41,786.94/coin or equivalent to Rp 597,553,242/coin, Ethereum rose 1.3% to a level of US$ 3,147.45/coin (Rp 45.008,535/coin) , and Terra rose 6.28% to US$ 72.18/coin (Rp 1,032,174/coin).
Crypto
In the past week, the majority of cryptocurrencies, especially big cap cryptos, still posted corrections. The correction for most big cap cryptocurrencies is still quite large, up to a dozen percent.
In fact, Bitcoin's market capitalization continues to shrink, where it has now reached US$791 billion, further away from the record it set in November 2021, which was US$1.3 trillion.
Today, Bitcoin is trading at around the level of US$ 41,000. Although this morning tends to strengthen slightly, Bitcoin actually weakened when compared to the price as of last Saturday which was traded at around the level of US $ 42,000.
Bitcoin and most other cryptocurrencies briefly corrected last week, following the release of the minutes of the meeting of the United States (US), Federal Reserve (The Fed) December 2021 edition. The Fed signaled that it would tighten monetary policy sooner than previously thought.
Even on Saturday, the price of Bitcoin weakened again to touch the range of US$ 40,500, before rebounding slightly above the range of US$ 42,000.
But when markets in Asia open, it's still uncertain whether the recovery will still take place as Bitcoin spot trading volumes on major centralized exchanges on Sundays tended to edge up.
Bitcoin Trading Volume
Bitcoin was down for the sixth day in a row before the weekend and the losses increased after the Fed minutes showed that policymakers are discussing aggressive rate hikes and more rapid steps to normalize the balance sheet.
Apart from being affected by the potential tightening of the Fed's monetary policy, the crypto market is also still sluggish as the yield on the 10-year US Treasury bond has strengthened again, almost touching 1.8%.
At the close of trading Friday US time, the yield on the 10-year Treasury rose 0.3 basis points to 1.766%. Over the past week, the 10-year Treasury yield has shot up to 25.3 basis points.
The yield movement has a negative correlation with safe haven assets. If the yield rises, the price of safe haven assets will fall and vice versa.
An increase in the benchmark interest rate makes investors tend to look to fixed-income assets such as government bonds, because the yield will also increase and investors tend to leave riskier assets such as cryptocurrencies and stocks.
