WMA: Bitcoin and Ethereum Remain Bullish Amid Industry Mixed News
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This Week’s Summary
- The Crypto Market ends the week at a total market capitalization of $358 billion
- Bitcoin registers a 0.6% increase to cement its value above $11,000
- Ethereum waves off minor fluctuations to continue trading above $370
- XRP is down by 6% as it drops beneath the $0.25 level
- Grayscale Investments attained reporting status for its Ethereum (ETH) trust from SEC
- OKEx suspended withdrawals after its founder was reportedly taken in by the police.
Crypto Trends 12th-18th of October 2020: PERFORMANCE & ANALYSIS
The cryptocurrency market draws the curtain on a long week full of spectacular events. As Bitcoin announced more investments from reputable companies, Ethereum can finally claim an SEC-approved reporting company in Grayscale Investments.
On the other hand, the Malta-based crypto exchange OKEx is navigating in trouble waters as its founder, Xu Mingxing, has reportedly been arrested by the police and has not returned to work in over a week. The exchange chose to put a stop to withdrawals until the air has cleared.
In recent years, this kind of negative news would have created massive volatility on the market. Even more so, the report comes less than a week after the owners of another exchange, BitMEX, were accused of illegal operations.
Nevertheless, Bitcoin and most of the altcoins barely flinched and continued to trade in the green. The cryptocurrency market maintains its balance and reports the same market capitalization as it had last week.
After Jack Dorsey and Square announced a $50 billion investment in Bitcoin last week, the most popular crypto in the world was again the subject of another financing venture this week. The asset management company Stone Ridge has bought 10,000 BTC as part of its primary treasury reserve.
Bitcoin continued its bullish surge on the back of these positive reports. Even the news that OKEx has banned withdrawals while $2.3 billion worth of BTC is still in OKEx wallets did not stop the coin’s impressive ascent. At the moment, Bitcoin is trading around $11,425, and the investors are hopeful that the crypto will continue to push back above $11,500.
Ethereum was also the subject of positive news this week. Grayscale Investments, one of the largest digital currency asset managers, obtained the status of “reporting company” for its Ethereum (ETH) trust from the Securities and Exchange Commission (SEC). It is important news for Ethereum and the crypto industry, which sees its credibility improve even further.
Other than that, Ethereum had a good week as it focused on securing its gains and continues to trade above $370. At the moment, it is trading at $375 and looking to push beyond the 2019-high of $394.
Ripple’s XRP has lost almost 4% this week as it dropped once again below the $0.25 level. The investors are still hoping that the bulls will get behind the coin and push it above the $0.30 threshold. But for now, XRP is trading at $0.242 and placing all its trust on the nearest support level at $0.24.
What’s in the News?
- The Central Bank of Spain has made studying a CBDC one of its priorities for the next four years.
- According to this report, numerous public companies have invested billions in Bitcoin in 2020.
Next Week’s Market Forecast
The cryptocurrency market has recently shown that bad news does not affect it much as it used to in the past. Bitcoin and most of the Top-20 altcoins stand their ground whenever disruptive reports appear in the media.
So, looking into the next week, it is likely that the bulls will continue their push behind Bitcoin and Ethereum as they want to hold firmly above the 50-day simple moving average (SMA).