WMA: Bitcoin drops points, KuCoin gets hacked while the altcoins struggle
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 $339 billion
- Bitcoin struggled to reach $11,000 but dropped by 2% towards the end of the week
- Ethereum loses only 1.5% and continues to trade around the $350 level
- XRP dropped below the $0.24 level and it is now fighting to get back above it
- The KuCoin exchange was the victim of a hack attack in which they lost over $280 million
- The US President was diagnosed with COVID-19 on Friday, and the news made most of the cryptocurrencies trade in the red
Crypto Trends 28th of September – 04th of October 2020: PERFORMANCE & ANALYSIS
The cryptocurrency market had a good and promising week until Friday. Bitcoin and most of the ensuing altcoins had registered solid gains, and they were looking to consolidate them over the weekend. Unfortunately, a couple of negative news that came in close succession undid most of their progress. In terms of market capitalization, almost $5 billion were lost across the last 7-days in comparison with last Sunday.
The first news that disrupted the surge of the crypto market came on Thursday evening. It reported that the US Commodity Futures Trading Commission (CFTC) officially accused the owners of BitMEX, the crypto derivatives exchange, of operating the platform illegally on top of numerous anti-money laundering violations.
BitMEX officials immediately denied the accusations and declared that the users’ money is safe, and all of the exchange’s operations are legit. The lawyers will take up the legal battle from here, but the damage on the crypto market and its reputation remain, at least for the time being.
The second news came on Friday when the US Presidential Administration announced that President Donald Trump and the First Lady tested positive for COVID-19. The President was hospitalized, and news about his condition affected the crypto market once again.
Bitcoin was one of the digital assets that most suffered from bad news. The popular crypto had started the week in lively fashion as it made its way upwards toward the $11,000 resistance level. On Thursday morning, BTC was trading for $10,920, but the ensuing news made it drop to $10,470.
At the moment, Bitcoin is trading around $10,611 after a small recovery, and the investors are hopeful in a speedy surge the following week.
Like most of the altcoins, Ethereum had a promising week before Friday. The second-most popular crypto was flying high until Thursday evening when it was trading at $368. The subsequent fall made it trade for as low as $337 on Friday.
At the moment, Ethereum is trading at $348, and it is looking to recover last week’s gains and climb above the next resistance level at $352.
Ripple’s XRP had started the week hoping that it would regain the crucial resistance level at $0.25. It was well on its way before Friday when it was trading at $0.248. However, on Friday it followed Bitcoin and most of the altcoins as it dropped precious points, and retreated at $0.23.
At the moment, XRP is trading at $0.233 and aiming to return at the top of its game next week and finally break the resistance level at $0.251.
Even the DeFi market felt the rippling effects of the negative news on Friday and lost almost $300 million in locked value protocols.
Elsewhere, an unknown group of hackers exploited the hot wallets of the popular cryptocurrency exchange KuCoin and managed to get away with more than $280 million. In the aftermath of what could be one of the biggest cryptocurrency hacks in history, the KuCoin CEO said that the company has a list of suspects who may have been behind the attack.
What’s in the News?
- According to a Glassnode report, Ethereum miners made more than $166 million in Gas fees only in September.
- Jack Dorsey, the CEO, and creator of Twitter said that blockchain and Bitcoin are the future of Twitter and social media platforms
Next Week’s Market Forecast
The cryptocurrency market is eagerly waiting for positive news from the US Presidential Administration to get back on its surging track. Some people fear that an aggravation of President Trump’s condition could lead to new value losses for Bitcoin and most of the Top-20 altcoins.
The next week should give a decisive signal on how Bitcoin will perform in the fourth financial quarter of a troublesome 2020. Additional negative news about the second wave of COVID-19 infections may also impact the cryptocurrency market and all of its niches, including the DeFi sector.