WMA: Bitcoin finally rises above $10k in a Sunday liquidation boost
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 $300 billion
- Bitcoin liquidated $74 million-worth of smarts to surge as high as $10,272
- Ethereum price explodes over the $300 barrier and setting new records for 2020
- XRP increases by more than 5% to trade at $0.22
- The total funds locked in Decentralized Finance (DeFi) projects reaches $4 billion
Crypto Trends 20th – 26th of July 2020: PERFORMANCE & ANALYSIS
After several weeks of utter boredom, the cryptocurrency market had a relatively successful week, finishing above $300 billion in capitalization, and seeing most virtual assets trading in the green.
The sudden “WOW!” moment arrived early on Sunday when Bitcoin spiked above the dreaded $10,000 barrier and dragged some of the ensuing altcoins on a positive trajectory as well.
Bitcoin was trading well throughout the week, slowly building its ascent from the $9,000 – $9,300 interval where it had been fluctuating for almost a month. By Friday, it had gained more than 5% on its value. On Saturday evening, it had reached $9,600, but on Sunday, it skyrocketed to $10,272.
Many investors were elated to see BTC finally move beyond the $10k resistance level more than two months after the halving. Their enthusiasm took a bit of a cold shower as Bitcoin’s value fell swiftly to around $9,908, where it is trading now. Nevertheless, the hopes for an imminent surge far beyond $10,000 are more solid than ever.
It seems that the reason behind Bitcoin’s exciting surge was the liquidation of over-leveraged short contracts worth $74 that was triggered to do so once BTC had reached $10k. A smaller push may have come from the traders who gained big on altcoins in the past weeks and decided to move their earnings into BTC.
Bitcoin wasn’t the only crypto asset to rejoice this week. Ethereum reached a record high value for 2020 as it surged all the way to $309. The first altcoin in command gained more than 13% on its value over the week.
On Sunday, just as Bitcoin was shooting into the stratosphere, Ethereum heard the news that the total value of capital locked into DeFi platforms had reached $4 billion. Now, Ethereum is trading at $310, and it is looking forward to remaining above $300 for the upcoming weeks based on the popularity that DeFi’s are rapidly gaining.
As Bitcoin and Ethereum increased in value, so did some of the ensuing altcoins. Ripple’s XRP went from a disappointing mid-week value of $0.197 to $0.223. At the moment, it contracted a bit, and it is trading at $0.213, but eager to remain close to the next resistance level, which is at $0.225.
What’s in the News?
- The Office of the Comptroller of Currency (OCC) has finally approved “national banks and federal savings associations of all sizes” to provide clients with custody of cryptocurrency
- According to a report by Whale Alert, Satoshi Nakamoto may have mined over 1.1 million-worth of Bitcoins by today’s standards in the early days of the crypto asset
- VirgoX and Global Digital Assets have launched World Stablecoin Association in Switzerland, which is an independent, not-for-profit organization with a mission to unite business leaders, enterprises, community buildings, and regulators in the stablecoin industry internationally
Next Week’s Market Forecast
A week full of excitement and hope is in store for the cryptocurrency market. Investors will be eager to see where Bitcoin will go from its recent victory that caught many of them off-guard.
The current data shows that there is still a very strong resistance around $10,200, and that barrier may prove to be another difficult hurdle to overcome. Nevertheless, enough optimism and support are there to push for the second week of ascent.
Another point of interest will be the surge of Ethereum and other ensuing altcoins. This summer has proven to be an all-altcoin season so far, and traders are waiting to see how far it will go.