Major cryptocurrencies traded higher on Thursday night as the global cryptocurrency market cap rose 2.54% to $2.01 trillion.
What Happened: The apex cryptocurrency, Bitcoin (CRYPTO: BTC) traded 3.3% higher at $44,686.73 over 24 hours. For the week it has fallen 6.13%.
See Also: How To Buy Bitcoin (BTC)
Ethereum (CRYPTO: ETH) rose 2.51% to $3,130.23 over 24 hours. The second-largest coin by market cap has declined 11.58% over the last seven days.
Shiba Inu-themed Dogecoin (CRYPTO: DOGE) rose 2.07% higher over 24 hours to $0.23. Over the last seven days, DOGE has lost 5.34% in terms of price.
The highest 24-hour gainer, as per CoinMarketCap, at press time, was NEAR Protocol (CRYPTO: NEAR) which shot up 19.93% to $9.19. For the week, NEAR has appreciated 5.46%.
NEAR, a token of a decentralized platform centered around apps, gained 16.52% and 17.48% respectively against BTC and ETH.
Why It Matters: The Bitcoin Fear & Greed Index, a metric by Alternative, signaled “Fear” at press time, which is perceived by some analysts as a bearish sign, but as per Alternative it could also be a “buying opportunity.”
“Bitcoin lost its momentum before the greed level was hit, when another market crash happened, and the Fear and Greed Index fell right back into the fearful levels,” as per Arcane Research, reported CoinDesk.
Meanwhile, Glassnode noted that small BTC investors continue to pile on to their holdings. These holders now account for 13.9% of supply collectively, as per a tweet by the on-chain analytics firm.
They now hold a collective 13.9% of supply. pic.twitter.com/Ap7X5FdE92
— glassnode (@glassnode) September 22, 2021
Cryptocurrencies saw a dip at the beginning of the trading week thanks to the uncertainty surrounding China’s highly leveraged real-estate giant Evergrande.
As per Lukas Enzersdorfer-Konrad, chief product officer at Bitpanda, Evergrande’s debt load stands at nearly EUR 300 billion ($352.3 billion) and has bond payments of roughly EUR 80 million ($93.94 million) due in September.
“The company has 30 days from the scheduled date to pay or the bond defaults. The situation actually seems to be worse than it looks and China plays a big role in crypto, which is why the correlation is higher,” wrote Enzersdorfer-Konrad in an emailed note.
The analyst said that it would take several weeks for the developments around Evergrande to play out and for them to impact the global financial markets meaning that “traders might be in for a period of increased volatility.”