WMA: Bitcoin is Back after Finally Breaching $11,000 as the CFTC cracks down on BitMEX
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 $358 billion
- Bitcoin manages to get above $11,000 and stay there
- Ethereum is up by more than 8% as it climbs above $370
- XRP is also up by 8% as it breaks the $0.25 resistance level
- CFTC’s legal charge on BitMEX leads to high-profile resignations and arrests
- John McAfee got arrested in Spain and now waiting to be extradited to the US
Crypto Trends 04th-11th of October 2020: PERFORMANCE & ANALYSIS
The cryptocurrency market finally catches a break after more than a month of sideways movements and disappointment. Bitcoin and most of the altcoins were on the rise despite the negative events and news traveling through the industry. In terms of market capitalization, the market managed to get more than $20 billion of the amount it lost throughout the last five weeks.
After relying only on the DeFi sector to keep the flag flying, the crypto market sees its favorite child regain its thirst for power as Bitcoin climbs above $11,000. The no.1 digital asset in the world did not only secure its position, but it is now aiming to take on the $12,000 resistance level as well.
BTC broke the $11,000 level on Friday and got up as high as $11,400 on Saturday. At the moment, Bitcoin is trading around $11,350, and the investors are hopeful that the crypto will continue its surge into the next week.
The first-ranked altcoin, Ethereum also made a breakthrough this week as it managed to get out of the quicksand area around $350. The second-most popular crypto got up as high as $377 on Saturday before settling on its gains, and it is now trading at $372.
Ripple’s XRP has been struggling for almost a month now to get back above $0.30. While it is still quite far from its 90-day high, the crypto has made a bit of progress this week by finally climbing above the $0.25 level. At the moment, XRP is trading at $0.257 and aiming to break the next resistance level at $0.261.
We talked last week about the legal action that the US Commodity Futures Trading Commission (CFTC) has taken against the owners of the large crypto derivatives exchange BitMEX.
This week, the CFTC continued to pursue the investors that they accuse of illegally running a derivatives exchange. As a result, Arthur Hayes and the entire executive team resigned from their positions, while Samuel Reed was arrested and later set free under an appearance bond.
In another case involving fraudulent misconduct involving cryptocurrencies, tech millionaire John McAfee was detained in Spain and is to be extradited to the US on tax evasion charges. The Security Exchange Commission (SEC) is accusing him of failing to disclose $23 million in profits and fraudulently promoting initial coin offerings.
Elsewhere, the DeFi market regained a bit of the money lost last week as it increased the value of locked protocols by $50 billion.
What’s in the News?
- The UK’s Financial Conduct Authority (FCA) announced that it would ban cryptocurrency derivatives from January 2021.
- The CEO of Twitter, Jack Dorsey bought $50 million worth of Bitcoin through Square.
- Ripple enters lending with XRP Credit Lines to fund Global Payments
Next Week’s Market Forecast
Into the next week, the cryptocurrency market will probably experience less intensity as most of the coins including Bitcoin and Ethereum will try to secure their gains.
Industry news still has a relevant impact on the ups and downs of crypto values, and the ongoing US Presidential elections are increasing the volatility factor as well.
For now, the bulls are in control, but for how long it is a subject of discussion that will surely be under debate at next week’s World Blockchain Summit Dubai, which will take place online.