WMA: Bitcoin Bleeds heavily in a week-long battle between bulls and bears
Get the weekly summary of cryptocurrency market trends, news, and forecasts!
This Week’s Summary
- The Crypto Market ends the week at a total market capitalization of $987 billion.
- Bitcoin lost more than 11% to trade again below $35,000.
- Ethereum only lost 6% over the week to continue trading around $1,200.
- XRP loses nearly 18% of its value after Kraken announces a ban on it for U.S. residents.
- Polkadot increases by nearly 79% to become 4th-crypto by market cap.
Crypto Trends 11th – 17th of January 2021: PERFORMANCE & ANALYSIS
The cryptocurrency market witnessed some of its most disappointing weeks in recent history. After most of the top-20 cryptos bled heavily throughout the week, the entire market capitalization dropped by more than $120 billion to end the seven days at $987 billion.
Bitcoin held the headlines this week after going on an abrupt rollercoaster ride that saw it lose 11.52% of its value. This time last week, BTC was trading high above $41,000, and the only question on most investors’ minds was: when the primary crypto break the $50k barrier would?
However, the week started as a cold shower for many optimistic BTC traders as Bitcoin lost more than $11,000 in just a few hours, and it swiftly went back to trading at around $30,000. The depression didn’t last that long, and on Tuesday, Bitcoin was already back above $36,000. On Wednesday, it fell below $33,000, and two days later, it was trading at $39,000.
Bitcoin seemed to stabilize over the weekend, and it experienced less volatility soon after losing another $3,500 of its value. It is trading now at around $35,861, and everyone is holding their breath on what the next week might bring.
Ethereum also started the week bleeding after losing more than $250 to drop from $1,300 to $1,050. However, the rest of the week was not as troublesome and confusing for Ethereum as for Bitcoin. The second crypto by market cap managed to remain above $1,000, and it is now trading at around $1,241.
After enjoying a spectacular resurrection last week, Ripple’s XRP took another tumble in the past seven days.
After the SEC charges of corruption, Ripple’s aura has faded, and XRP’s value has subsequently diminished. Now, prestigious crypto exchange Kraken has announced that starting with January 29th. It will suspend XRP trading for users based in the United States. Ripple’s dire news brought another value reduction for XRP, which is trading now at around $0.27.
XRP also lost the 4th position in the market cap table, which is now held by Polkadot. The native coin of the open-source, sharded protocol has increased by more than 78% in the past week to trade above $17 and register more than $3 billion in market cap than XRP.
The DeFi sector also wobbled a bit at the beginning of the week. Still, it managed to recover over the weekend to add nearly $200 million to the total value of locked protocols, which now sum up nearly $23,17 billion.
What’s in the News?
- China’s Blockchain Service Network (BSN) reportedly aims to finish developing its CBDC this year.
- UBS Global Wealth Management compares the cryptocurrency craze to MySpace and says that the investors might lose all their money when the levee breaks.
Next Week’s Market Forecast
The next week should be decisive in establishing a name for Bitcoin’s recent seesaw movement. Was the surge above $40k another speculation-inflated bubble? Or, was Bitcoin falling on the $30k cushion before shooting for the stars above the $50k level?