The cryptocurrency market finally shot upwards after the weekend reported high gains. Bitcoin briefly surpassed $49,000 before falling to current levels, that is, $47,746.50 (01 Oct. 10:00 AM UTC).
Regarding the stock market, the Dow Jones Industrial Average rebounded sharply, indicating an uprising in the financial market.
The positive results seemingly came after the final stage clinical trials of a new therapeutic drug for COVID-19 developed by Merck & Co., a major US pharmaceutical company, obtained good results. It suggested that the new medicine could lead to the revival of the world economy, resulting in psychological improvements.
The recent financial markets have deteriorated sharply due to the debt problems of the U.S. administration and the liquidity crises of the Evergrande Group, but investors have also receded these concerns.
However, the default risk of the Chinese Evergrande Group has not been eliminated, and it is unclear how much the market is factoring in.
With the market upturn, the Bitcoin hash rate has nearly recovered to the record highs of May this year. This suggests the revival of major Chinese miners who have moved overseas as Chinese authorities tighten their squeeze on cryptocurrency-related businesses,
Until now, the global miner distribution was extremely concentrated in Sichuan Province, China and Inner Mongolia Autonomous Region against the background of cheap electricity bills. However, with the recent crackdown, the decentralization of mining has seemingly progressed.
In the altcoin market, Tezos blockchain’s native token XTZ, continued to grow, rising 1.59% from the previous day and +41% from the previous week. It set a new record high of $ 8.81 for the Alto season in May this year.
According to CoinMarketCap, Tezos is currently ranked 25th in terms of market capitalization. The reason for its growth was attributed due to its increasing presence in the NFT market.
In addition, due to the rise in demand for staking, the number of floating-point numbers on the market decreased and the supply amount became insufficient (increasing rarity value), which also resulted in a tailwind.
In September, popular US rapper Doja Cat, announced an NFT collection sale on the Tezos-based NFT marketplace ‘One Of’, boosting the rise of XTZ.
Apart from Tezos, Axie Infinity (AXS) continued to grow as well with current prices sitting at $149 (+40% from the previous day and +135% from the previous week).
According to a Messari survey, the estimated market capitalization of Axie Infinity (AXS), which was calculated from the token value and the number of issues, is about $ 30 billion, making it one of the largest gaming companies.