Weekly Recap: Brutal Downswing for the Crypto Market

Last edited: Jan 9, 2022

After large declines in prices across the market last week, the week of Jan 3 to Jan 9 had been a brutal one yet again, with bigger percentage drops across the board. All major coins are down at least 10%; however, there is one particular altcoin that drastically outperformed the entire market. Let’s take a look at the biggest losers and the biggest winner over the past week of trading.

ETH: $3,144.32 (-17.28% over the past 7 days)

ETH has been off to an extremely rough start this year, dropping another 17% this week to just below $3,150 in price. The key contributors to the price decline for ETH are that investors are liquidating their positions in ETH, most likely cashing out the profits made last year, where ETH went up by more than 400%, and the increase in fear of the economy as the omicron variant of COVID-19 sweeps across the globe.

Better solutions to address the continuing rampage of the virus, as well as government policies to address fears of economic slowdowns, would be potential news to monitor, as these would be the indicators for ETH to recover in prices. But for now, ETH, along with the rest of the crypto market, will struggle to gain momentum, due to the short-term bearish views on economic outlooks currently.

ETH price chart over the past 7 days (1-hour intervals)

DOT: $24.48 (-17.71% over the past 7 days)

DOT has been a frequent highlight on weekly recaps recently, which is not good news for the coin, as it continues its slide in prices. It is down almost 18% over the past week, and when compared to its highest point in the last 3 months, the market value of DOT has evaporated by more than 50%. Certainly, much of the decline can be attributed to market volatility, as most coins are down compared to their ATH or near ATH prices during early November. However, the negative news for DOT is that it had lost much more value than other prominent altcoins, giving more concerns for its holders. Investors of DOT will need an injection of confidence from its venture capital backings, as things haven’t been looking bright since its peak 2 months ago.

DOT price chart over the past 7 days (1-hour intervals)

LINK: $27.95 (+29.82% over the past 7 days)

LINK is the lone outlier in the crypto market this week, gaining almost 30% in prices while all other major coins declined more than 10%. The gains may be partially attributed to LINK powering FRAX Finance’s new algorithmic stablecoin, FPI, that is designed to be inflation-resistant and will be a new unit of account. It is pegged to a decentralized consumer price index, consistently updated through LINK’s database, which means it will accurately reflect the inflation rates in the world economy. The more use cases LINK can find by chaining together off-chain data with on-chain networks, the more growth potential it will realize in the future.

LINK price chart over the past 7 days (1-hour intervals)

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