WMA: Bitcoin drops below $10k and the altcoins bleed heavily after surprising SUSHI sell-off
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 $328 billion
- Bitcoin loses almost 20% of its value as it falls under $10,000
- Ethereum loses most of its summer progress as it drops below $350
- XRP loses more than 10% as it falls as low as $0.231
- SUSHI loses almost 50% in value as the lead developer sold all of his tokens causing the entire market to go crashing down
Crypto Trends 31st of August – 6th of September 2020: PERFORMANCE & ANALYSIS
All hell broke loose in the Crypto Universe this week as Bitcoin and most of the pursuing altcoins lost almost all of their precious summer gains. The cryptocurrency market lost no less than $40 billion in market cap in comparison to last Sunday, and a rocky recovery road lies ahead.
The week started well for most cryptocurrencies. Bitcoin was preparing to conquer the $12k resistance level. Ethereum was flying high towards $480.The DeFi craze was still rampant, and there was no sign of a storm building anywhere on the market.
On Thursday, news about the NASDAQ 100 dropping by 5% took its toll on most cryptocurrencies. Bitcoin started its downtrend towards $10,700, and Ethereum lost precious points to get dangerously close to the $400 level. It seemed like BTC was only testing the $10,000 level again, and most traders were confident that the coin would recover quickly and drag the market along for another bullish ride.
Suddenly, on Saturday, the lead developer of the popular Sushiswap protocol sold all of his tokens, causing a domino-effect tumble on the market. SUSHI itself lost almost 50% of its value almost immediately. Bitcoin fell farther than 10K, and for a few hours, it traded for around $9,800 on Binance. Most of the altcoins, including Ethereum, XRP, and Chainlink took a few punches as well and traded in the red for almost the entire weekend.
As the week is coming to an end, most of the coins are slowly recovering from the unexpected hangover.
- Bitcoin has managed to get above $10k, and it is now trading at $10,240
- Ethereum is still reeling and valued at only $350 at the time of this writing
- Ripple’s XRP restarts the strenuous journey towards $0.3, and it is now trading at $0.24
- Chainlink is trading at $12.17 at the moment
Elsewhere, most of the DeFi’s stood their ground during the SUSHI debacle, and are now bouncing back to keep the reputation as this year’s revelations of the crypto market. Polkadot, Aave, and UMA continue to trade in the green.
What’s in the News?
- The Singapore Stock Exchange (SGX) launched the iEdge Bitcoin Index
- Binance Futures Open Interest went above $1 Billion in August
- Pornhub adds Bitcoin and Litecoin to its long list of payment options
Next Week’s Market Forecast
The first week of September dealt a huge blow to the cryptocurrency market. Few were expecting such a massive drop in value to occur in just two days after more than two months of a continuous surge.
The next week should bring a steady recovery for most of the crypto assets. Bitcoin has tested the $10k support level thoroughly, and except unforeseen events, it should restart trading in the green again. Most of the altcoins should follow suit, as will the DeFi’s that keep making the headlines even when one of their protocols takes a hit.