Ether and most other major copycats recovered ground lost during last week's downturn; Country Z companies don't seem to believe in blockchain technology.
Bitcoin rose but hovered below $20,000
On a day of fireworks in the US, cryptocurrencies also had something to celebrate.
Bitcoin is back above the $20,000 threshold that has been a psychological observation point for investors since the start of the summer to gauge the length of the current bear market. The largest cryptocurrency by market capitalization recently traded at around $20,300, up 5% in the past 24 hours. Bitcoin briefly fell below $19,000 last week before recovering in a rally on Friday.
Ether, along with several other major copycats, rose more in Monday's trading as investors appeared more comfortable with risk. The second-largest cryptocurrency by market capitalization changed hands at more than $1,150, up nearly 8% from the previous day. Among other major cryptocurrencies, SOL and SAND are up more than 9% and 8%, respectively.
The cryptocurrency Fear & Greed index remains stuck in extreme fear territory as the sector absorbs the latest shock, analysts remain bearish on prices at least in the short term, and there is a lack of convincing evidence that inflation is under control and the global economy will not fall into recession. Bitcoin and Ether are down more than 5% and 6% from their highs early last week, at a time when most other cryptocurrencies are also in the red.
"Bitcoin has been under almost constant pressure over the last week," Alex Kuptsikevich, senior market analyst at FxPro, wrote in an email. "The brief rally early in the day on July 1 is more likely due to the excitement at the start of the new period (month, quarter, half-year) than a fundamental change in conditions."
The price of Ether is weak
ETH prices continue to be weak because "the merger will see the network transform from a proof-of-work platform to a proof-of-stake platform, fast approaching. Trading was light as the United States celebrated Its Independence Day. U.S. stocks were celebrating a holiday, but European indexes rose, with the Stoxx Europe 600 index gaining 0.5 percent On Monday.
To be sure, Binance CEO Zhao Changpeng recently called the cryptocurrency winter a good time to buy bitcoin for investors who can wait for the next bull market. A mastercard survey reported that more than 51 percent of Latinos made at least one cryptocurrency transaction between March and April of this year.
But the industry's barrage of bad news continued as crypto hedge fund Three Arrow Capital filed for bankruptcy late Friday after weeks of speculation it was functionally insolvent. Us-israeli cryptocurrency lender Celsuis laid off about 150 employees over the weekend as it deals with a financial crisis that led to a halt to customer withdrawals last month; CoinLoan, a cryptocurrency lending platform, limits withdrawals; Another cryptocurrency lender, Singapore-based Vauld, has suspended all withdrawals, transactions and deposits on its platform as it considers restructuring plans.
A troubled economic backdrop
Kuptsikevich noted that the troubled economic backdrop is likely to continue to plague the crypto market.
"Global conditions remain bearish as equity markets see no sign of central banks tightening financial conditions," Mr Kupzikowicz wrote. "BTCUSD remains below its 200-week average on the weekly chart, and last week's timid attempt to climb higher failed."
market
S&p 500:3,825 +1%
Dow: 31,097 +1%
Nasdaq: 11,127 +0.9%
Gold: $1,808 +.02%