WMA: Bitcoin Continues Its Decline While The Altcoins Soar

Data & Research / 24.01.2021

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 $950 billion.

  • Bitcoin lost nearly 7% over the week to trade at around $32,000.

  • Ethereum gained almost 10% in value to trade above $1,300.

  • XRP and Polkadot settle on their previous gains while trading in the green.
  • The DeFi sector adds more than $2 billion to the total value of locked protocols.

Crypto Trends 18th – 24th of January 2021: PERFORMANCE & ANALYSIS

The cryptocurrency market puts an end to a lukewarm kind of week. The good news came from the altcoins with spectacular value boosts for most cryptos. However, the spotlight was on Bitcoin as the primary cryptocurrency continued to bleed heavily as it drifted farther from the $40,000 level.

The entire market capitalization dropped by nearly $20 billion to reach $957 billion throughout the last week.

Bitcoin bled consistently over the last seven days. From the hopes of reaching $50,000, BTC investors had to lower their expectations and hope that the most popular crypto in the world will manage to stay at least above $30,000.

Bitcoin value is dropping as some of the early investors are cashing in, but it also suffers from unfounded rumors of double-spending. This gossip created so much damage that some industry experts like Andreas Antonopolous had to come out and explain why double-spending would not be possible on the Bitcoin blockchain.

Bitcoin is trading now at around $31,900 after losing more than $2,000 throughout the week.

Ethereum didn’t follow Bitcoin’s example and instead added more than $100 to its value after a 9.72% boost over the last seven days. The second crypto by market capitalization is getting closer to its ATH record at $1,432.88, as it is now trading at around $1,320. The next resistance level lies at $1,350, while the nearest support is at $1,100.

After losing the 4th position in the market cap table, Ripple’s XRP seems comfortable with the lower level of glory. Registering only a feeble 0.04% increase in value in one week is not a promising sign for a future XRP comeback, trading now at around $0.273.

Elsewhere, the rest of the altcoins registered remarkable gains. Chainlink increased by more than 16%, Uniswap by 22%, and Aave by 28%.

The DeFi sector recovered after a losing streak last week to add more than $2 billion to the total value of locked protocols, which now sum up nearly $25,43 billion.

What’s in the News?

  • NexTech AR Solutions, a Canada-based company developing VR and AR solutions, decided to sell all 130 BTC after worrying about a double-spending FUD.

  • Giant state-owned Russian bank Sberbank is working towards launching its own cryptocurrency, according to local reports.

Next Week’s Market Forecast

The next week should see Bitcoin trying to recover some of its recent losses. After dropping nearly $10,000 in less than two weeks, the primary crypto has also lost credibility points in its attempt to become a reliable alternative to traditional financial markets.

Fortunately, Bitcoin’s correction did not affect the cryptocurrency market too much as it will try to regain its recently lost dozen billions and climb above the trillion-dollar mark again.

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A creative writer in the field of content writing for the past 7 years. Iulian is passionate about his work and his interest in areas such as technology, travel, sports, literature and gastronomy have aided him to the research quality in articles that reflect these themes. Recently, he discovered the Bitcoin and the blockchain technology and he’s a big fan now.