The Crypto market was trading with minor gains on Wednesday, ahead of the much-awaited executive order by US President Joe Biden. The global cryptocurrency market cap jumped to $1.77 trillion, adding almost 3 percent in the last 24 hours. Bitcoin price has surged more than 5% due to the favorable market trading above $41k. The flagship currency has motivated major altcoins in the market as well. Ethereum has gained more than 6% trading above $2.5k.
Global Risks to Hinder Ethereum’s Growth?
“The war in Ukraine and spiking crude make a potent combination for a global recession,” wrote McGlone in the report, adding that top cryptocurrencies like Bitcoin and Ether could also face initial pressures.
According to Mike McGlone, senior commodity strategist at Bloomberg Intelligence, U.S. equities would experience drawback stress as a result of the potential of further energy price rises and their ability to trigger a global market crisis similar to that of 2008.
During the recent global market crash and Ukraine-Russia conflict, correlations between U.S. stock indices and cryptocurrencies have only gotten stronger.
Ether’s correlation effectiveness with the tech-heavy Nasdaq 100 climbed to 0.93 four days after Russia invaded Ukraine, but has subsequently fallen to 0.67. When two properties have an absolute value of one, they transfer in lockstep. Correlations between U.S. stock indices and high cryptocurrencies have only been stronger during the recent global market crisis and the Ukraine-Russia conflict.
Four days after Russia invaded Ukraine, Ether’s correlation effectiveness with the tech-heavy Nasdaq 100 soared to 0.93 but has since plummeted to 0.67. When the absolute value of two characteristics is one, they transfer in lockstep.
Our graphic portrays Ethereum at the middle of the range, the expert noted, adding that if the inventory market takes another leg lower, Ethereum Price is more likely to revisit the decreased finish near $2,000 in the future.
“If equities drop fast, Ethereum could repeat last summer and revisit about $1,700.”
Ethereum market dominance declines!
According to the most recent data, Ethereum’s market dominance is dwindling as competitors such as Cardano (ADA), Solana (SOL), Avalanche (AVAX), and Terra gain ground (LUNA).
The data from DeFi Llama shows that the share of total value locked (TVL) on the Ethereum network has dropped below 55 percent, its lowest level on record, from 97 percent at the start of 2021.
Despite this, not everyone believes Ethereum’s TVL market share decline will continue. According to Marcus Sotiriou, an analyst at GlobalBlock, Ethereum will reclaim its dominance when it converts from its current proof-of-work methodology to proof-of-stake later this year.
Ether’s association with the US stock market, according to the expert, would also drop due to “declining relative risk.