WMA: Bitcoin breaks beyond $40,000 as the market joins the TRILLION Dollar Club
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 $1.07 trillion.
- Bitcoin increased by roughly 27% to trade above $40,000
- Ethereum increased by more than 70% to trade well above $1,200.
- XRP recovered from its recent downfall to register an increase of over 50% in value.
- The US Government has allowed the country’s banks to use stablecoins and blockchain technology in a decisive step toward the adoption of cryptocurrencies.
Crypto Trends 03rd – 10th of January 2021: PERFORMANCE & ANALYSIS
The cryptocurrency market is on a roll as it records another successful week. Bitcoin and the ensuing altcoins registered massive gains, and the entire market capitalization increased by more than $240 billion to reach a historical $1.11 trillion.
Nothing seems to stop Bitcoin as the primary crypto increased by 27% over the past seven days and set a new all-time high (ATH) at $41 941 on Friday. At the moment, BTC is more likely to reach $50,000 than to drop to $20,000, as Mike McGlone, Bloomberg’s Senior Commodity Strategist, forecasts.
While Bitcoin’s ascent is impressive, to say the least, the journey to the top hasn’t been all that smooth. The leading cryptocurrency is still subject to intense volatility. Only on Friday, after reaching its most recent ATH, BTC lost almost $5,000. For the next few hours, it went back and forth between $36,000 and $41,000. Bitcoin is trading now at around $39,700.
Another cryptocurrency that registered a spectacular rise is Ethereum. The second crypto by market cap added a whopping 70% to its value to trade neatly above $1,200. On Friday, it was trading at $1,340, which was just $90 short of its ATH set nearly three years ago.
Ethereum is now trading at around $1,300. The next resistance level lies at $1,355, while the nearest support is at $1,200.
One of the biggest surprises this week came from Ripple’s XRP. After losing precious points over the past few weeks, XRP seemed doomed to fall again under the dreaded $0.20 level. However, the bulls had other plans for Ripple’s coin. On Wednesday, it started gaining muscle as it got out of the resistance swamp around the $0.25 mark. Since then, it gained almost 50% in value to trade well above $0.3.
XRP is trading now at around $0.34, and it is aiming to overcome the $0.4 resistance threshold. On the other hand, the nearest support lies at $0.3.
Elsewhere, most of the altcoins registered impressive gains. For almost the entire week, the top-20 cryptocurrencies have been trading in the green. Chainlink increased by nearly 47%. Cardano also increased by almost 90% and Stellar by no less than 147%.
The good news for the cryptocurrency market keeps coming as the US Office of the Comptroller of the Currency (OCC) has made altcoins and blockchain technology available as payment settlement instruments for US banks.
What’s in the News?
- Finland has announced the sale of 1,981 bitcoins, which the authorities have previously seized in drug trafficking criminal investigations.
- HDBank, a Vietnamese bank, announced it would start providing letters of credit by using blockchain technology.
- A cybersecurity company, Intezer, issued a report alerting the world about a new type of malware built from scratch to work on Windows, Linux, and macOS to steal cryptocurrencies.
Next Week’s Market Forecast
The next week should see another exciting trading period for the cryptocurrency market, which is now a proud member of the Trillion Dollar Club. As Bitcoin is becoming more attractive as a store of value with every passing week, we should see a steady surge for an asset that gained more than $11,000 in the past two weeks.