WMA: Bitcoin loses $10k and alts bleed heavily in horror week for crypto
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 $1,332 trillion.
- Bitcoin decreased by more than 22% to trade below $44,000.
- Ethereum lost more than 31% over the week to trade at around $1,300 again.
- XRP lost around 25% of its value to trade around $0.41.
- Cardano became the 3rd-largest crypto by market cap after a 7% increase in value.
- The DeFi sector lost more than $7 billion in sees in the total value protocols.
Crypto Trends 22nd – 28th of February 2021: PERFORMANCE & ANALYSIS
The cryptocurrency market puts an end to its worst week of 2021 so far. Bitcoin took a $10,000 plunge, most altcoins lost all their gains from the previous three weeks, and most of the DeFi protocols also bled heavily.
The cryptocurrency market lost several hundred billion from its value over the week. At one point, it had dropped below the $1 trillion mark. Before the weekend was over, it regained its position, and it closes this period with $1,332 trillion in market capitalization.
After breaking the $55,000 resistance level last week, Bitcoin went on a downward slope over the past seven days. It started bleeding on Monday, and it is still losing precious points at the time of this writing.
There are several reasons rumored in the industry as the possible causes for Bitcoin´s surprising downfall. One is that the Nasdaq went through the biggest slump since October 2020. Usually, when Wall Street is falling, it´s dragging the rest of the markets along with it. Now, the shock rippled through the financial world, and the crypto market together with Bitcoin felt it the most.
Another reason for Bitcoin´s sudden drop in value could be the massive sale of Bitcoin from the whales, holders of giant amounts of BTC. Some go as far as to name it the ¨Bitcoin whale spawning season¨ that sees big investors cashing in on the ¨gold rush. ¨
In the end, it´s most probably a mix of various causes that led to Bitcoin lose nearly 23% of its value over the week. Even its market cap has fallen under the $1 trillion mark, and it is now standing at $823 billion.
At the moment, Bitcoin is trading at around $44,600, and everyone is hoping for a quick recovery in March.
Ethereum also lost precious value points over the week. After setting one ATH after another in mid-February, the second crypto in command saw its ambitions humbled by a 31% loss just before the month´s end.
Ethereum is now trading at around $1,350. Not too many investors expect it to return above $2,000 anytime soon but at least to trade in the green again.
Ripple’s XRP is bleeding heavily. After losing 25% of its value over the week, it is now moving over the least favorable end of the top-10 cryptos by market cap. XRP is trading now at around $0.4, and the goal of surpassing the $1 threshold is now nothing but a distant dream.
However, there was one altcoin that didn´t lose a cent of its value. On the contrary, it increased by more than 7%. Cardano made the spectacular ascension to 3rd place in the crypto market cap to pass more prestigious assets like Tether, ChainLink, and Stellar. Cardano is now trading at $1.24.
Elsewhere, the DeFi sector lost almost $7 billion from the total value protocols (TVL), which now stands at nearly $34.76 billion.
What’s in the News?
- Dubai-based cryptocurrency investment fund FD7 Ventures announced that it would sell $750 million worth of Bitcoin to invest in Polkadot and Cardano.
- South Korea aims to tax cryptocurrency investors with 20% on profit starting with 2022.
Next Week’s Market Forecast
The next week opens a new month and a new chapter for the cryptocurrency market. Bitcoin and the most popular altcoins should see a recovery to trading in the green. Rarely have the cryptos bled heavily for two weeks in a row ever since the COVID-19 pandemic expanded globally almost a year ago.