Bullish price action is returning back to the cryptocurrency market alongside the U.S. stock market as the 16.54% rally in Bitcoin, has seen the altcoin market post gains as high as 90% in the last seven days.
Although we saw a bullish price action during the week, the sentiment in the cryptocurrency market still remains bearish because of the dovish U.S. inflation data that sparked an increase in monetary policy rate by the U.S Federal Reserve. The Feds, through its Chairman, announced a 75-basis point interest rate hike (0.75%) in a bid to tame the ever-increasing inflation rate. This is the biggest hike in the U.S. since 1994.
Asides from the U.S., the Swiss National Bank surprised the market by raising its key rate by 50 basis points. Also, during the week, the Bank of England increased its interest rate, hiking for the fifth straight time by 25 basis points. These actions from central bankers still leave a stain of bearish sentiment for the cryptocurrency market as on-chain data from Glassnode still shows minimal participation in the market compared to last year.
The rally in the market also came despite the $100 million hack of the Harmony Network that also brought about fear in investing in the market. This is why many are calling the current bullishness a dead cat bounce, a term used to describe a short-term bullish action which is followed by a deep and intense market sell-off.
Here is a look at the top five gainers of the top 100 cryptocurrencies by market capitalization:
Top 5 gainers
- Compound (COMP) 91.88%
- Synthetix (SNX) 89.43%
- Storj (STORJ) 86.68%
- Polygon (MATIC) 78.89%
- STEPN (GMT) 76.50%
There are no losers for the week as the top 100 token all recorded position price actions in the week under consideration.