Welcome back,
If you are following the news recently, a lot has happened in the financial market. The crypto market has started to recover. Bitcoin is now trading above $90,000 USD. Ethereum is trading above $3,300 USD.
There have also been some political incidents where Trump is reportedly taking control of Venezuela after the arrest of the President of Venezuela and his wife. Now there are two categories of people, one supporting Trump and the other not supporting Trump.
Let us not get into the political discussion of whether Trump is doing right or wrong. I will leave that to the audience reading this blog to decide.
For now, the important thing is that people in Venezuela were celebrating. In the last 2 days, the stock market in Venezuela has gone up by 75%.
This is mainly because of the belief that the dictatorship in Venezuela is coming to an end. Even if Venezuela might be about to face bigger challenges under Trump, for now the market in Venezuela is reacting in a positive manner.
There have also been some rumors that Venezuela was secretly reserving Bitcoin, and that a large amount of Bitcoin might be seized once official data and information are released. For now, these are only rumors. But if this turns out to be true, the market is definitely going to react strongly to this news.
At the moment, I think the market is in a decent position. The fear and greed index is also moving back towards neutrality, which is usually the phase where bulls start becoming active. That is when the real recovery in the market is usually seen.
We can already see that tokens related to Ethereum and Bitcoin are moving. Some tokens with good utility, like Fetch.ai and Fartcoin, and other tokens that I have personally shared in the past, such as DOG built on the Bitcoin blockchain, have already gone up by approximately 50% to 60% in the last few days.
So the market is clearly on the move, and I think this is a positive sign. Those who were holding their bags and did not sell in the last 2 to 3 weeks should be happy, because their portfolios are already up by at least 30%, even if they are diversified across different tokens. Overall, 30% is what many altcoins have recovered so far.
However, we still need to wait and observe how the weekly closing happens. Only after that can we decide whether the market will continue in the same direction as the last 2 days or if it will behave differently.
Another positive sign is that USDT dominance is falling after hitting a major resistance. That is one of the reasons why I am slightly bullish on the market for now.
Let us hope for the best. That is all for today.
Thank you and happy trading, everyone.