Bloody Week Sees Bitcoin & Co. Lose Billions of USD
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THIS WEEK’S SUMMARY
- The Crypto Market ends the week at a total market capitalization of $1,876 trillion.
- Bitcoin lost more than 9% in value in comparison to last Sunday.
- Ethereum is up 10% after a turbulent week with steep value oscillations.
- XRP is down by more than 16% after major value loss.
- Binance Coin increased by more than 13% throughout the week.
- The DeFi sector lost almost $5billion from the total value protocols (TVL).
CRYPTO TRENDS 19TH – 25TH OF APRIL 2021: PERFORMANCE& ANALYSIS
The cryptocurrency market puts an end to the bloodiest week of 2021 so far. After several weeks of optimistic value boosts, the market plummeted with major losses across the board. On Sunday, the bloodbath seemed to end with small recoveries from a handful of cryptocurrencies.
The market capitalization dropped by more than 200 billion dollars over the week. Now, it stands at $1,876 trillion.
Bitcoin started the week trading just below $60,000. However, it quickly went downhill as some investors decided that the “Hodl” game was not for them. By Tuesday, BTC was already trading as low as $52,000, and a series of positive news helped it regain some of its losses.
Firstly, PayPal’s mobile payment service, Venmo, allowed over 70 million users to buy, sell, and store cryptocurrencies. Among the cryptos available on Venmo are Bitcoin, Litecoin, Ethereum, and Bitcoin Cash.
Secondly, WeWork, one of the biggest providers of shared coworking space globally, announced that it would enable users to pay with cryptocurrencies.
It seemed that the bulls would get behind Bitcoin again and push it beyond the $60,000 barrier again for a couple of days. Unfortunately, the storm wasn’t over. And, news of U.S. President Joe Biden getting ready to tighten crypto regulations in the US hit BTC with formidable force.
The entire crypto market started bleeding heavily. And, Bitcoin took the biggest blow. In just a few hours, it dropped well below $50,000. More so, its market capitalization fell again under the $1 trillion mark to deter new investors even more.
As the weekend rolled along, BTC’s value steadily recovered. With a small but solid 2% daily increase, the most popular crypto should soon be on its way up again. Bitcoin is now trading at around $50,300.
Ethereum also had a crazy week, but it came out better than Bitcoin. The second crypto in command started the week trading in the green at around $2,200. While it lost more than $200 on Tuesday, it quickly recovered to set a new ATH at $2,641 on Thursday. That was the 4th ATH in a row since March.
The same news that destabilizes bitcoin also hurt Ethereum. As a result, Ethereum lost more than $500 in just a few hours on Friday. Since then, it has recovered to finish the week with an overall 10% increase in value.
Ethereum is now trading at around $2,340. The next level of resistance lies at $2,402. However, if it fails to reach it, ETH can fall on the next support at $2,200.
After a few good weeks of substantial value increase, Ripple’s XRP lost most of its gains in the past seven days. Contrary to Ethereum, XRP could not recover from the negative news and rumors in the market. Overall, it lost over 16% of its value throughout the week. XRP is trading now at around $1.13.
Most of the altcoins traded in the red throughout the week. While some of them have traded in the green over the weekend, the overall evolution is negative.
Polkadot registered a significant 14% loss, and Cardano decreased by almost 6%. Even Litecoin lost almost 12% of its value. The only altcoin that can look proudly at the past seven days is Binance Coin, which records an overall 13% increase in value. Binance Coin is now trading at around $513.
Elsewhere, the DeFi sector also registered a significant depreciation. Over the past few days, it lost almost $5 billion from the total value protocols (TVL), which now stands at nearly $55.39 billion.
WHAT’S IN THE NEWS?
- Gemini conducted a survey revealing that over 14% of Americans own cryptocurrencies.
- Deutsche Telekom, one of the largest telecom companies globally, has bought a substantial amount of DeFiCelo’s native cryptocurrency, which remains undisclosed.
NEXT WEEK’S MARKET FORECAST
The next week should see the crypto market recover from its most recent defeat at the hands of negative news. If there is one thing that the industry’s 11-year-history has taught us so far is that the bulls do not allow the bears to settle on their gains for too long.