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The crypto market in the third week of 2022 still tends to be sluggish and has not risen like in November 2021. The sluggish crypto market is known to have occurred in early 2022 trading.
There are at least five cryptocurrencies with large market caps (big cap) for two weeks in 2022 (year-to-date / YTD) experiencing corrections of up to a dozen percent. In fact, some have been corrected up to 21%.

The five big cap cryptocurrencies that have been corrected by a dozen percent are Bitcoin, Ethereum, Solana, XRP, and Terra.

Based on data from CoinMarketCap, Solana had the worst correction in more than two weeks, falling 21%, followed by Terra, which fell 14.82%. As for the two ‘jumbo’ cryptocurrencies, Bitcoin and Ethereum, both fell by 11.3% and 14.44%, respectively.

The following are the movements of five big cap cryptocurrencies for more than two weeks.

The lack of enthusiasm for crypto to the November 2021 level occurs because negative sentiment on global financial markets still tends to outnumber positive sentiment.

The first negative sentiment is global inflation which is still rising, especially in the United States (US).

Last week, the US Consumer Price Index (CPI) in December 2021 showed a 7% jump on an annual basis, the highest reading in four decades.

Meanwhile, the US Producer Price Index (PPI) in December 2021, which was released the next day, reflected an increase of 9.7% compared to the same period last year. However, the results were better than some investors had feared.

The rebound in inflation in Uncle Sam’s country made the market suspect that the US central bank (The Federal Reserve / the Fed) would be more hawkish going forward, where they also predicted that the Fed would raise its benchmark interest rate sooner than previously predicted.

The market’s suspicion of the Fed’s increasingly hawkish attitude had also caused the yield of 10-year Treasury bonds to rise to the range of 1.7%, and even almost touched 1.8%.

Higher interest rates are designed to prevent inflation from spiking further.

However, one of the effects on capital markets is that the policy will hit speculative assets such as stocks and possibly cryptocurrencies, as investors opt for safer investments such as US government bonds.

Apart from inflation and the potential for the Fed’s hawkish attitude, the development of the corona virus (Covid-19) pandemic is also still a burdensome sentiment for crypto movements.

The number of new infections in the world in recent weeks according to the World Health Organization (WHO) has crossed the 15 million mark per week.

This was driven by the emergence of the Omicron variant. In fact, the strain that was first detected in South Africa (South Africa) and Botswana has replaced the Delta variant.

“The large number of cases is weighing on the health care system,” said WHO Technical Lead for Covid-19 Maria Van Kerkhove, at the latest press conference last Wednesday (12/1/2021).

“Even though Omicron isn’t as bad as Delta, it’s still putting people in hospital, still getting people into the ICU and needing further clinical care. He (Omicron) is still killing people,” he added.

On the other hand, investors also tend to hunt for other digital assets that are still related to crypto, namely non-fungible assets or NFTs.

In fact, the rapidly increasing trend of NFT makes the price of Ethereum tend to be positive, because the majority of NFTs use Ethereum as a crypto reference. But this turned out to be unable to help Ethereum return to its November 2021 range.

Bitcoin is trading in relatively small ranges this week. That provided some relief for market participants after the volatile crypto trading earlier this year. In the past day, bitcoin prices have tended to be flat with around 3% gains during the kick-off, compared to ethereum’s 5% gains.
However, some traders and analysts remain cautious given that the price of the cryptocurrency with the largest market cap fell below $40,000 earlier this week, if only briefly.

“The price swings are all on [small trading volume], which can amplify the price movement,” Q9 Capital, a Hong Kong-based crypto investment platform, said Friday (14/1/2022). “No new capital comes in and no one wants to sell or buy,” wrote Q9.

Attempts earlier this week to form a rebound faced more substantial selling, indicating seller pressure,” said Alex Kuptsikevich, an analyst at FxPro.

Kuptsikevich is particularly concerned about further declines for ether, the world’s second-largest crypto asset by market cap after bitcoin. If the momentum does not improve, he anticipates the worst case scenario the price will fall in the range of US$1,300-US$1,700 ETH, which is about 50% below the current price level.

However, not all assets in the crypto ecosystem experience a slowdown in trading activity, as bitcoin is experiencing.

The trading volume of non-fungible tokens (NFT) continues to soar. For example, OpenSea, a large NFT market, is on track to register more than US$6 billion in transactions by the end of the month.

Next up is dogecoin (DOGE), a dog-themed meme coin that is gaining popularity. Its price jumped nearly 14% on Friday after the boss of electric car maker Tesla, Elon Musk said Tesla would accept the crypto asset as a means of payment for the company’s merchandise. DOGE prices are up about 20% over the past week.

Crypto prices with large market capitalization (big cap) were observed to be bright and enthusiastic in trading Thursday (13/1/2022) morning Indonesian time, indicating that a recovery trend is starting to form after being corrected for several days.
Launching data from CoinMarketCap as of 09:10 WIB, almost all big cap cryptocurrencies have managed to recover from the correction zone, except for two stablecoins, namely Tether and USD Coin.

Bitcoin shot 2.08% to a price level of US$ 43,592.72/coin or equivalent to Rp. 623,375,896/koin (assuming today’s exchange rate is Rp. 14,300/US$), Ethereum jumped 3.19% to a level of US$ 3,339.95 /coin or Rp 47,761,285/coin.

Next, Solana jumped 6.48% to US$ 149.56/coin (Rp 2,138,708/coin), Cardano rocketed 10.58% to US$ 1.33/coin (Rp 19,019/coin), and Terra flew 8, 95% to US$ 79.82/coin (Rp 1,141,426/coin).

Bitcoin is starting to creep up, where today the crypto with a market capitalization of US$ 826 billion is now trading at around US$ 43,000.

The re-positive of the crypto market today occurred after the release of inflation data in the United States (US) from the consumer side (Consumer Price Index / CPI) for the December 2021 period, where the CPI of Uncle Sam’s Country grew 7% year-on-year (year-on-year). /yoy) and is the highest level since 1982.

Although inflation is at its highest level in the last 4 decades, market participants have anticipated this increase.

Economists surveyed by Dow Jones had predicted that the US CPI in December 2021 would rise 7% according to the current actual figure.

The day before, the chairman of the US central bank (Federal Reserve / The Fed), Jerome Powell was present to give testimony and convey the direction of US monetary policy in front of the Banking Senate.

On that occasion, Powell emphasized that the monetary authority would take tightening steps in the form of terminating the bond buying program (tapering) and raising the benchmark interest rate.

Again, Powell’s speech which indicated the direction of the Fed’s policy was also anticipated by market participants so that there were no surprises that made the market depressed.

Bitcoin is seen by most investors in crypto as a hedge against inflation. But there are also some that Bitcoin still cannot be considered as a hedge against inflation.

“The market reaction to the latest inflation data may be a little confusing, but this time around, investors seem much more relaxed about the Fed’s potential hawkish stance.” Mati Greenspan, founder of cryptocurrency and foreign exchange analysis firm Quantum Economics, was quoted as saying by CoinDesk.

On the other hand, some analysts maintain their long-term bullish view on Bitcoin. Although some analysts and investors tend to be optimistic, volatility will still occur in the next few days.

“Crypto markets are expected to remain volatile in the months ahead, although investors are optimistic as they navigate a new era of inflation,” said Lennard Neo, head of research at Stack Funds.

The price of the majority of cryptocurrencies with large market capitalization (big cap) reversed correction in trading Tuesday (11/1/2022) morning Indonesian time, because investors were still worried about the potential increase in the United States (US) central bank benchmark interest rate and the latest developments from the corona virus ( Covid-19) globally.
Launching data from CoinMarketCap as of 09:00 WIB, only one digital coin (token) of the stablecoin type, namely USD Coin, strengthened slightly this morning.

While the rest turned corrected today. Bitcoin edged down 0.01% to a price level of US$ 41,764.37/coin or equivalent to Rp. 600,989,284/koin (assuming an exchange rate of Rp. 14,390/US$), Ethereum fell 2.42% to a level of US$ 3,071.39/ coins or Rp 44,197,302/coin, Solana fell 4.3% to US$ 134.71/coin (Rp 1,938,477/coin), and Terra fell 4.5% to US$ 69.2/coin (Rp 995,788 /coin).

The following is the movement of the top 10 cryptocurrencies based on their market capitalization today.

Crypto
Bitcoin traded again around the level of US $ 41,000 this morning because investors were still responding negatively to the potential tightening of the United States (US) central bank’s monetary policy.

The correction in the crypto market that occurred again today is in line with the continued correction of the US stock market, Wall Street on Monday’s trading, although the weakening began to tend to decrease.

The volatility in risk-based global financial markets was caused by the increase in yields on 10-year US Treasury bonds, which are the benchmark, which continued the upward trend and approached the 1.8% level. Even though at the end of last year, the Treasury yield was still at the level of 1.5%.

On the other hand, market participants are also still waiting for the release of US inflation data for December 2021. For the record, the US Consumer Price Index (CPI) in November 2021 rose 6.8% and became the highest increase in the last 4 decades.

Market participants still see that inflation in the US will remain stubborn at the end of 2021. The Trading Economics Consensus estimates that US inflation at the end of the year will reach 7% year-on-year (YoY).

Due to inflation that remains high and seems reluctant to go down, the Fed as the US central bank began to intervene. The injection of liquidity through asset purchases (quantitative easing/QE) is also taped.

Furthermore, the US monetary authority is also preparing to raise the benchmark Federal Funds Rate (FFR) interest rate and reduce the portion of bonds on the balance sheet.

The Fed is expected to start raising its benchmark interest rate in March 2022. If you refer to the dot plot of the Fed, there is room for a 3x increase in FFR this year.

However, Goldman Sachs has the view that the Fed will be more hawkish and could raise interest rates up to 4x.

In addition, the market is also monitoring the latest developments regarding the corona virus (Covid-19) globally, where scientists in several countries have again discovered a new variant of Covid-19 that has characteristics such as Omicron and Delta, so it is referred to as Deltacron. This variant was found in Cyprus and there have been 25 cases.

The price of the majority of cryptocurrencies with large market capitalization (big cap) reversed correction in trading Tuesday (11/1/2022) morning Indonesian time, because investors were still worried about the potential increase in the United States (US) central bank benchmark interest rate and the latest developments from the corona virus ( Covid-19) globally.
Launching data from CoinMarketCap as of 09:00 WIB, only one digital coin (token) of the stablecoin type, namely USD Coin, strengthened slightly this morning.

While the rest turned corrected today. Bitcoin edged down 0.01% to a price level of US$ 41,764.37/coin or equivalent to Rp. 600,989,284/koin (assuming an exchange rate of Rp. 14,390/US$), Ethereum fell 2.42% to a level of US$ 3,071.39/ coins or Rp 44,197,302/coin, Solana fell 4.3% to US$ 134.71/coin (Rp 1,938,477/coin), and Terra fell 4.5% to US$ 69.2/coin (Rp 995,788 /coin).

The following is the movement of the top 10 cryptocurrencies based on their market capitalization today.

Crypto
Bitcoin traded again around the level of US $ 41,000 this morning because investors were still responding negatively to the potential tightening of the United States (US) central bank’s monetary policy.

The correction in the crypto market that occurred again today is in line with the continued correction of the US stock market, Wall Street on Monday’s trading, although the weakening began to tend to decrease.

The volatility in risk-based global financial markets was caused by the increase in yields on 10-year US Treasury bonds, which are the benchmark, which continued the upward trend and approached the 1.8% level. Even though at the end of last year, the Treasury yield was still at the level of 1.5%.

On the other hand, market participants are also still waiting for the release of US inflation data for December 2021. For the record, the US Consumer Price Index (CPI) in November 2021 rose 6.8% and became the highest increase in the last 4 decades.

Market participants still see that inflation in the US will remain stubborn at the end of 2021. The Trading Economics Consensus estimates that US inflation at the end of the year will reach 7% year-on-year (YoY).

Due to inflation that remains high and seems reluctant to go down, the Fed as the US central bank began to intervene. The injection of liquidity through asset purchases (quantitative easing/QE) is also taped.

Furthermore, the US monetary authority is also preparing to raise the benchmark Federal Funds Rate (FFR) interest rate and reduce the portion of bonds on the balance sheet.

The Fed is expected to start raising its benchmark interest rate in March 2022. If you refer to the dot plot of the Fed, there is room for a 3x increase in FFR this year.

However, Goldman Sachs has the view that the Fed will be more hawkish and could raise interest rates up to 4x.

In addition, the market is also monitoring the latest developments regarding the corona virus (Covid-19) globally, where scientists in several countries have again discovered a new variant of Covid-19 that has characteristics such as Omicron and Delta, so it is referred to as Deltacron. This variant was found in Cyprus and there have been 25 cases.