WMA: Bitcoin Surges Above $28k as Alts Drown in Christmas Bloodbath
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 $709 billion.
- Bitcoin increased by more than 15% to climb above the $28,000 mark.
- Ethereum increased by almost 5% and hit a new year high above $715
- XRP lost almost 52% of its value after being sued by the SEC.
- DeFi token 1inch increases by 1000% in value after Binance listing.
Crypto Trends 21st – 27th of December 2020: PERFORMANCE & ANALYSIS
The cryptocurrency market ends the last full week of 2020 with mixed feelings. On the one hand, its crown jewel, Bitcoin, has spiked to get above $28,000. On the other hand, most altcoins bled heavily, and XRP’s Ripple was struck by a lawsuit that ripped more than 50% of its value and saw it lose its 3rd position by market cap.
In the last seven days, the cryptocurrency market added more than $50 billion to its market capitalization to climb above $700 billion.
Bitcoin had a spectacular rise in value throughout the week. It started trading at $23,500 on Monday, then increased by $1,000 on Christmas, and rose to reach as high as $28,288 on Sunday morning. After setting a new all-time high (ATH), the primary crypto reverted and lost nearly $900 from its value.
At the moment, Bitcoin is trading at around $26,800, and it is looking toward the $28k resistance level. If it manages to break it by New Year’s Eve, we could see BTC trading above $30,000 in early January.
The second crypto by market cap, Ethereum, also enjoys some of Bitcoin’s success. While during the week, it managed to lose almost 3% of its value in total, it managed to recover and reach a new year high of $715, and it is now trading at around $692.
However, few were as unlucky as Ripple’s XRP, which lost more than 50% of its value. This surprising downfall is not a result of a pullback from the bears. Instead, it is due to a recent lawsuit launched by the Securities and Exchange Commission (SEC) charging Ripple and two executives with conducting $1.3 billion worth of unregistered securities offerings. The scandal sees XRP lose most of its power and credibility as it even drops its 3rd position by market cap, now taken, again, by Tether.
In the aftermath of the SEC lawsuit, another blow came from one of the most popular cryptocurrency exchanges, Bitstamp, which halted trading and deposits for US customers for XRP.
XRP is trading now at around $0.283. However, the future doesn’t look too bright for the token or its parent company, Ripple.
Elsewhere, the DeFi sector managed to lose almost $3 billion in value of locked protocols, which now sum up to only $13,43 billion. The only noteworthy news from the decentralized finance market is the 1Inch token, which went up by 1200%, from $0.2 to $2.60 in just one day after being listed by Binance.
What’s in the News?
- BitGo’s CEO, Mike Belshe, said that PayPal wouldn’t buy his company anymore in a recent Fortune interview.
- Crypto-friendly former presidential candidate Andrew Yang will run for New York City Mayor in a wave of reports showing many pro-crypto politicians taking crucial roles in the US administrative system.
- A survey conducted by the Australian crypto exchange Independent Reserve shows that over 20% of Australians possess cryptocurrencies.
Next Week’s Market Forecast
By next weekend, the cryptocurrency market will have ended an unforgettable year in its existence. Hopefully, it will start a new and equally monumental one.
Bitcoin eyes the $30,000 mark, which should propel it to a new level of popularity and credibility. While some fear a potential crash in January, similar to the one that followed the December 2017 spike, the possibility of that happening is small today.
The cryptocurrency industry has shed its image of a speculative, scamming market, which it has worn for almost a decade. Bitcoin has also matured and become a stand-alone asset that is now present in the portfolios of investors, politicians, and important personalities worldwide. The upcoming year should see it solidify this image and grow to an even wider acceptance globally.