WMA: Bitcoin gets back above $50k as the entire market gets a huge 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 $1,566 trillion.
- Bitcoin increased by more than 14% throughout the week to trade again over $50,000.
- Ethereum increased by nearly 24% to reach as high as $1,700.
- XRP increased by almost 13% to trade above $0.46 again.
- Binance Coin, Polkadot, and other altcoins gained substantial value points over the week.
- The DeFi sector added more than $4 billion to the total value protocols (TVL).
Crypto Trends 01st – 07th of March 2021: PERFORMANCE & ANALYSIS
The cryptocurrency market shows signs of recovery after the tumultuous last days of February. This week finishes on a high with significant improvements for Bitcoin, Ethereum, and most of the Top-20 cryptocurrencies.
The end-of-the-week market capitalization stands at $1,566 trillion, more than $200 billion compared to last Sunday.
After struggling to remain above $40,000 last week, Bitcoin made a spectacular comeback in March’s first days. The most popular crypto in the world regained more than $6,000 of its value to trade again above the psychological resistance level at $50,000. Doing so ends the week just $50 billion short of the $1 trillion market cap.
The price recovery may result from new investors profiting from the value drop to buy BTC at a low price. One such example is that of Chinese tech company Meitu, which bought 380 BTC and 15,000 ETH after investing no less than $40 million in cryptocurrencies.
Another reason for the BTC surge may be that recent investors are not keen on panic selling their crypto assets. The industry has repeatedly proven that a bubble burst does not necessarily follow a spike in the past decade. The longer they hold, the higher the rewards could be for those who live and die by one word, HODL.
At the moment, Bitcoin is trading at around $51,000. The next resistance levels lie in hands reach at $52,650 and $54,000.
Ethereum also had a good week as it put the February slump behind it. The second crypto in command increased by over 23%, and it is now trading at around $1,670. While the $2,000 resistance level seems out of reach at the moment, the next resistance seems more approachable at $1,755.
Ripple’s XRP shows signs of recovery after adding more than 12% to its value over the week. It might not get back in the Top-3 cryptos by market cap anytime soon, but this small value boost should give investors hope. XRP is trading now at around $0.465.
Most of the altcoins traded in the green towards the week. Binance Coin added nearly 16% to its value. Polkadot gained more than 13% in value, and Litecoin lost more than 30% of its trading price.
However, there was one altcoin that didn´t lose a cent of its value. On the contrary, it increased by more than 7%. Cardano is the only loser out of the Top-10 cryptos after seeing its value decrease by almost 9% over the week.
What’s in the News?
- The US House of Representatives has passed President Biden’s $1.9 trillion stimulus bill, which should see most of the markets, including cryptocurrency, benefit substantially.
- According to this report, the former CEO of BitMEX, Arthur Hayes, could surrender to the US authorities in April in Hawaii. He has to face accusations of willingly money laundering in his previous commanding position at the prestigious crypto exchange.
Next Week’s Market Forecast
The next week should see Bitcoin and most of the ensuing altcoins stabilize and settle on their recent gains. The market looks to go through fewer rollercoasters than in the past years, so stability should be on the lips of most seasoned investors. The recent stimulus bill passed in the United States could have an immediate positive effect on the crypto industry.