It’s not easy to keep up with the world of cryptocurrencies, coupled with the fact that the crypto market is just cooling. Prices are unstable, and there is an increase in the number of launched projects.
In this article, we had the pleasure of interviewing the Head Trader of WealthPress, Roger Scott. Roger Scott is a commodity broker and a hedge fund trader with 25 years of expertise under his belt.
WealthPress Head Trader Roger Scott already been featured on CNBC, CNN, Forbes, Bloomberg, and Fox Business. And today, he’s sharing his invaluable insights with us on the current happening in the crypto market.
Can you tell us about the state of the crypto market?
The current health of the crypto market is obvious. Inflation is significantly above forecasts, and assets purchases are unchanged.
Everything is almost the same for altcoins. Bitcoin’s dominance index has not changed, and it stays at 44%.
Solana and Theta Network are distinct. The former was listed on Coinbase Pro today, while the latter was excited to include a $500 million DHVC venture fund under management as a validator.
Roger Scott, which noticeable factors failed to boost the market?
The index provider MSCI’s ideas regarding entering the cryptocurrency market did not have impact on the market, though it could act as an extra instrument for institutional investors.
That’s not all. The SEC’s postponement of the SEC’s Bitcoin-ETF decision due to the regulator’s latest comments has also failed to incite any growth.
Hence, the market is now settled, following the previous week’s “hot” sessions.
How do you detect the valuable cryptocurrency in the market today?
The website coinmarketcap.com, which monitors the ‘market cap’ of cryptocurrencies, lists over 2000 currencies. Now how do you know which ones are valuable?
A good metric is the market capitalization – as in a publicly-traded company. It is simply the result of multiplying the total number of coins in circulation by the value of one unit. The higher the number, the more valuable the currency ecosystem.
Do you have any idea of the rate of network activity?
The network activity is low. The blockchain analytics company, Glassnode stated that both the futures market and the bitcoin spot market shaped a short squeeze scenario.
Usually, a significant decrease in the daily volume of transactions signifies a bearish situation even if there is a hike in bitcoin price. The liquidation of short positions under this condition is known as the short squeeze.
So, it is possible that the sales of those who want to release their short positions—to minimize losses—can increase the price of the asset. The bitcoin price boom of $38,677 led to the liquidation of short positions for more than 900 million.
Is this a record quarter for decentralized exchanges?
The decentralized finance (DeFi) market is here to stay. Its trade volumes corroborate this fact. The decentralized exchanges (DEX) moved more than $400,000 during the second quarter, and it is one of the areas with the most spectacular growth.
An increase of 11.751% in the volumes moved by DEX was caught between the second quarter of 2020 and this year.
The peak of activity that the cryptocurrency market experienced in May, just before the price-drop that led BTC to lose up to 50% of its value in two weeks, stood out.
Should You Buy The Crypto Dip?
Crypto prices have dropped substantially with the latest downturn. While this might be unsettling news for crypto investors, it can be a good buying opportunity.
As the Head Trader of WealthPress, I have been closely monitoring key data insights about the crypto market. Regardless of the crypto dip, I am still confident in the crypto market, and see this is nothing more than a temporary blip.
The latest phenomenon in the investing world is the idea of non-fungible tokens, or NFTs. Do you think it is smart to invest in NFTs right now?
NFTs, although still relatively new, have proven to be lucrative — with some digital arts already sold for tens of millions of dollars. It is definitely an interesting new type of investment, but it’s not for everyone.
If you have cash to spare and curious about NFTs, it may not hurt to test the waters. Otherwise, it is best to watch this phenomenon unfold from the sidelines where your money is safer.