WMA: Bitcoin spikes beyond $9,000 as halving approaches

Data & Research / 03.05.2020

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 $254.6 billion.
  • Bitcoin ends the week trading past $9,000
  • Ethereum increases by 13% to trade well over $200
  • XRP price breaks beyond the 0.20 barrier after a 12.5% boost
  • COVID-19 is still out there, but governments are looking into easing restrictions in May

Crypto Trends 27th of April – 03rd of May 2020: PERFORMANCE & ANALYSIS

Last week, Bitcoin increased its value as if there was never a pandemic strangling financial markets everywhere. With the much-expected halving just around the corner (12 May), the most popular crypto out there surged past the $9,000 barrier.

In its explosive hike, Bitcoin dragged most of the ensuing altcoins, helping many of them overcome resistance levels that they have been pushing against for months.

The week started smoothly for BTC, as it detached itself from the gold and equity markets, which are still hazy from the COVID-19 pandemic. Bitcoin’s price increased steadily, reaching as much as $9,417 on Thursday before dropping just below $9,000 in the ensuing hours. With just 9 days left until the halvening, Bitcoin is now trading at $9,117, and investors expect it to rise even further in the upcoming days.

Two important pieces of news helped the Bitcoin surge throughout the week. One of them regarded an unspoken consensus between most big European economies and the U.S. to resume their economies starting with May. Most governments are looking optimistically towards a pandemic-free summer in the hope that the worst has already passed.

Another piece of good news came from the scientists struggling to find a cure for the Coronavirus. According to this report, a government-backed study found that medical drug Remdesivir may help COVID-19 patients recover quicker from the infection. FDA is looking into ways of making it available to the public.

Bitcoin’s surge and the news that the U.S. economy is about to restart has strengthened the investors’ trust in US-pegged cryptos. Many of these digital assets have been developed on Ethereum, which sparked an almost “natural” increase in Ethereum’s value. The second-most popular cryptocurrency experienced a 13% boost compared to last week and ended this one trading at $216.

Ripple’s XRP is also riding high after finally breaking the $0.20 barrier. It is now trading at $0.224 and aiming at the next resistance level, which lies at $0.234.

What’s in the News?

  • Leading Hedge Fund Renaissance Technologies targets Bitcoin
  • China’s Blockchain Services Network ‘ChinaChain’ launches for the public
  • Binance launches mining pool service with an initial focus on Bitcoin.
  • Berlin-based blockchain startup Gapless raises €5.5 million from Porsche, FinLab, and others.
  • FTX is planning to launch a U.S.-based spot crypto exchange in May

Next Week’s Market Forecast

In the upcoming week, the cryptocurrency market should witness another positive trajectory across multiple digital assets. Investors expect Bitcoin value to go well past $10,000 as the third halvening in history is quickly approaching.

Everyone seems to be eyeing Bitcoin’s halving, with Google searches about the event surpassing those of 2016. Most of the ensuing altcoins should benefit from the frenzy surrounding it and overcome the strong resistance levels lying ahead.

All in all, it is a good period for the crypto market as opposed to the traditional financial markets that are still battling the side effects of the COVID-19 pandemic.

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A creative writer in the field of content writing for the past 7 years. Iulian is passionate about his work and his interest in areas such as technology, travel, sports, literature and gastronomy have aided him to the research quality in articles that reflect these themes. Recently, he discovered the Bitcoin and the blockchain technology and he’s a big fan now.