With a market capitalization of more than $1 billion, Internet Computer is part of the top 50 cryptocurrencies according to CoinGecko. Although the crypto market of course bullish in tokens, the positive sentiment in crypto has not been reflected in the chart in the past days.
according to CoinGecko, the token is down 5% on a daily time scale. However, the two-week time scale shows a 12% gain.
Bullishness Is Up, But Why Are Internet Computers Going Down?
Definitythe company that launched the Internet Computer, recently incorporated Bitcoin to add smart contracts to the top cryptocurrency.
According to Sentiment insight made by SanTrends, the top 5 ICP is just behind Ethereum in development activity. InfinitySwap, the automated market maker (AMM) and ICP blockchain staking platform, also contributed to the increase in development activities due to it as well integrated Ethereum, guarantees a low cost compared to the top altcoins.
Image: Crypto News Flash
However, strong bullishness in the development was sideswiped by a roll strong on TVL, high-profile crashes in the crypto space, and economic headwinds creating the perfect storm for ICP to crash the day before 2023 begins.
Chart: DefiLlama
Safety For ICP Rises, But Not For Investors
ICP’s on-chain security has been enhanced by integration with BTC. With 2022 too famous with the number of stolen digital assets, this security boost is greatly appreciated by the public.
However, on-chain security does not guarantee returns for investors and Internet Computer traders. Historically, ICP follows Ethereum and Bitcoin in price movement. If ETH and BTC will suffer from internal or external factors in the crypto industry, it will reflect the price of altcoins like Internet Computer.
The beginning of this year for ETH and BTC has been shaky at best. With the BTC community celebrating Genesis Block today anxiously at $16,515 support, ICP has a long way to go on bullish prices.
However, with analyst indicating a metric that could be a precedent for a bull run, ICP may have short-term upward momentum above the $4,096 price resistance with support at $3,840.
ICP total market cap at $1.1 billion on the daily chart | Chart: TradingView.com
Bitcoin and Ethereum are running sideways as crypto markets and traditional financial markets await Federal Open Market Committee (FOMC) Meeting Minutes. which will signal the possibility of further interest rate hikes.
Not to mention the current FUD surrounding everything Genesis-DCG debacle and the deteriorating situation of the Grayscale situation as two of them Bitcoin Trust Fund and independent Ethereum Trust Fund rapid depreciation.
Meanwhile, ICP investors and traders should hold off on major decisions until the FOMC meeting is over as this will indicate better or worse economic conditions.
-Featured image: Yahoo Finance