WMA: Bitcoin closes in on $14k, most alts plummet and Iran adopts BTC
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 $400 billion.
- Bitcoin increases by more than 5% to get close to the $14k level
- Ethereum lost more than 5% of its value to drop below the $400 mark.
- XRP lost over 7% in value to trade around $0.23 again
- Iran becomes the first country to use Bitcoin as a medium of exchange.
Crypto Trends 26th of October – 01st of November 2020: PERFORMANCE & ANALYSIS
The end of October leaves the cryptocurrency market with mixed feelings. On the one hand, Bitcoin is flying high and beats one 2020 ATH (all-time high) after another. However, most altcoins are bleeding heavily and struggling to live up to their expectations.
The good news is that the cryptocurrency market managed to gain more than $12 billion in market capitalization compared to last week. At the moment, it has reached $400 billion, and it continues to rise.
One of the climbers of the week was, unsurprisingly, Bitcoin. The popular crypto is still on the rise following the PayPal endorsement news from last week. After starting the week trading at $12,990, Bitcoin continued to trade in the green for most of the week and gained almost $1,000 in value.
Bitcoin’s spectacular surge is even more impressive as most of the Wall Street markets traded predominantly in the red throughout the week and experienced the worst slump since Mach.
At the moment, Bitcoin is trading around $13,755, and the most optimistic voices in the industry are cheering for a continuous ascent that would take the BTC price past $20,000 by the end of the year.
While Bitcoin is having the time of its life, most altcoins are bleeding heavily and failing to keep up with the market expectations.
Ethereum failed to break the $416 resistance level at the beginning of the week, and it has been on a downward spiral ever since. It is now trading at around $388 and looking to push back beyond the next level of resistance at $400.
Ripple’s XRP lost more than 5% of its value and most of its gains last week. It is a period of high fluctuation for the 3rd-largest crypto by market cap. Every week, it tries to regain its favorite trading position at $0.30 but fails just as often. At the moment, XRP is trading at $0.238 and hoping to stay away from the nearest support level at $0.23.
One of the most surprising developments this week came from Iran. The Middle-Eastern country has become the first state to use Bitcoin as a medium of exchange. The Iranian Government and the Central Bank of Iran endorsed the notorious cryptocurrency to allegedly provide another legal alternative to traditional currencies for imported goods.
However, the reason behind this sudden embrace of cryptocurrency may be Iran’s intention to escape the economic sanctions imposed by the United States. Bitcoin would offer a reliable means of exchange in international trade, even if the country’s fiat currency continues to lose value.
What’s in the News?
- Coinbase launched a crypto debit card with a 1% reward on Bitcoin spending.
- The banking giant JP Morgan has released its own stablecoin, called JPM Coin.
Next Week’s Market Forecast
The cryptocurrency market is one of the very few financial markets that don’t seem to suffer from the international response to a second wave of the COVID-19 pandemic. Most governments in Europe are imposing rigorous restrictions and lockdowns that deliver significant blows to local and national economies.
Still, the crypto market continues to increase in value and attract more support as traditional financial markets bleed consistently. It will be interesting to see how far this trend will go as the second pandemic wave takes another swipe at the world.
Looking into next week, Bitcoin is expected to continue its bullish run, but most eyes will be on the altcoins as the industry is desperate to see them follow BTC in its impressive surge.