WMA: Bitcoin returns to near pre-pandemic value while oil price tanks
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 $219,3 billion.
- Bitcoin almost recovers to trade at its pre-pandemic value of $7,800
- Ethereum sees a 10% increase in price compared to last week.
- XRP price increases by 3% and gets closer to the $0.20 resistance level
- Crude oil price goes to an unprecedented negative value.
- China’s digital Yuan attracts the interest of McDonald’s, Starbucks, and others.
- COVID-19 has now reached 3 million cases worldwide
Crypto Trends 20th – 26th of April 2020: PERFORMANCE & ANALYSIS
Last week, Bitcoin continued its surge and increased by almost 4% compared to last week. The entire industry anticipates next month’s halving, and no news can stop the price from ascending, not even the historical drop in crude oil price that went below zero.
The bears tried to make their presence known on Monday as the BTC price dropped to $6,840, but their resistance was short-lived. The bulls regained control, and Bitcoin’s price skyrocketed past the $7,000 threshold. It traded as high as $7,650 on Saturday afternoon, and it now ends the week at $7,600, which is just $200 short of its pre-pandemic value.
One of the events that fueled Bitcoin’s ascension was the news confirming testing for Chinese central bank digital currency (CBDC) is conducted in the Xiongan New Area, North China’s Hebei Province. The same report speaks of major interest from big-name investors like McDonald’s, Starbucks, and Subway, who are eager to be part of trial tests from the very beginning.
Another news that shouldered Bitcoin’s green-trading trajectory came from governments worldwide looking to relax quarantine measures and restart their economies. While the COVID-19 pandemic is still raging on with 3 million cases and over 200,000 people dead worldwide, it seems that the global economy cannot afford to stay under lockdown another day more.
Elsewhere, the cryptocurrency market did not lose too much momentum from the news regarding the historical price drop for crude oil. Almost all of the major altcoins increased in value. Some of them experienced spectacular breakthroughs, as it is the case of Tezos, which saw a powerful 27.5% price increase over the past 7-days and has now become the biggest staking network on the market.
Binance went through 4 hours of scheduled maintenance on Saturday, but the event did minimal to affect the surge of most cryptos like Ethereum. The second most popular cryptocurrency saw a 10% increase in price compared to last week, and it is now trading at $196. The next resistance level is at $200, while the closest support level lies below $177.
Ripple’s XRP continues its uptrending voyage as well, even if it makes baby steps compared to Bitcoin and Ethereum. XRP ends the week trading at $0.195 after a 3% price increase over the last week. The next resistance level is at $0.20, while the support lies at $0.191.
What’s in the News?
- Facebook’s (FB) Libra is planning to introduce multiple individual cryptocurrencies linked to fiat.
- The Bank of America says that the S&P 500 can experience even worse losses than its 30% drop in March.
- A Court of Law in China stated that Ethereum is a property and that it has economic value.
- Facebook’s Calibra team moves ahead with Byzantine Fault Tolerance (BFT) testing.
Next Week’s Market Forecast
In the upcoming week, Bitcoin investors will be watching the news closely, and especially what The U.S. Federal Reserve decision on monetary policy will be on Tuesday. Additional developments regarding the COVID-19 pandemic and the crude oil price crisis should also influence the cryptocurrency market.
Otherwise, the entire industry is eagerly anticipating the Bitcoin halving that will take place on the 12th of May. The event could result in even greater demand at higher prices. The last BTC halving occurred in 2016 and sent prices through the roof.