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With more than $1 billion in market cap, Internet Computer is part of the top 50 cryptocurrencies according to CoinGecko. Although the crypto market is certainly bullish on the token, the positive sentiment on the crypto has not been reflected in the charts in the past few days.
According to CoinGecko, the token is down by 5% in the daily timescale. However, the bi-weekly timescale shows a 12% gain.
Bullishness Up, But Why Is Internet Computer Down?
DFinity, the company that launched Internet Computer, recently integrated Bitcoin to add smart contracts to the top cryptocurrency.
According to the Santiment insight made by SanTrends, ICP is top 5 just behind Ethereum in development activity. InfinitySwap, the ICP blockchain’s automated market maker (AMM) and staking platform, has also contributed to the rise in development activity as it also integrated Ethereum, ensuring low fees compared to the top altcoin.
However, this strong bullishness in development was sideswiped by a strong drop in TVL, high-profile crashes in the crypto space, and economic headwinds produced the perfect storm for ICP to crash just a day before 2023 started.
Security For ICP Is Up, But Not For Investors
On-chain security of ICP has been boosted by its integration with BTC. With 2022 being very notorious for the number of digital assets stolen, this security boost is highly appreciated by the community.
However, on-chain security does not guarantee returns for Internet Computer investors and traders. Historically, ICP follows both Ethereum and Bitcoin in price movement. If ETH and BTC will suffer from internal or external factors in the crypto industry, it would reflect on the price of altcoins like Internet Computer.
This year’s start for ETH and BTC has been shaky at best. With the BTC community celebrating Genesis Block day anxiously at $16,515 support, ICP has a long way to go in terms of bullish pricing.
However, with analysts showing metrics that might be a precedent of a bull run, ICP might have a short-term upward momentum above $4.096 price resistance with support at $3.840.
Bitcoin and Ethereum are trudging sideways as both the crypto market and traditional financial market await the Federal Open Market Committee (FOMC) Meeting Minutes which will provide possible signals of more interest rate hikes.
Not to mention the current FUD surrounding the entire Genesis-DCG debacle and the deteriorating situation of Grayscale’s situation as both its Bitcoin Trust fund and its Ethereum Trust fund depreciate rapidly.
Meanwhile, ICP investors and traders should hold off any major decision until the FOMC’s meeting concludes as this would indicate either a better or worsening economic situation.
-Featured image: Yahoo Finance