WMA: Bitcoin Takes a Belly Flop after Tesla Discards BTC Payments, but the Market Pulls Through
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 $2,304 trillion.
- Bitcoin loses nearly 15% over the week after Elon Musk announced that Tesla wouldn’t accept BTC payments anymore.
- Ethereum is down by 1% despite setting a new ATH this week.
- XRP is up by almost 4% after a highly volatile week.
- Binance Coin lost more than 9% of its value over the week.
- Cardano is back in the Top-5 cryptocurrencies by market cap after a roughly 40% increase in value.
- The DeFi sector lost more than $2 billion to the total value protocols (TVL).
Crypto Trends 10th – 16th of May 2021: PERFORMANCE & ANALYSIS
The cryptocurrency market had an exciting week, full of highs and lows. Various altcoins registered important gains. However, Bitcoin and several other big-name cryptos traded in the red for most of the time.
In terms of market capitalization, only about $70 billion were lost, and the market cap now stands at $2,304 trillion.
Bitcoin doesn’t seem to get a break. Firstly, it’s been a month since it was testing the much-prized $60,000 resistance level. Secondly, its market cap has dropped well below the $1 trillion marks and now stands at only $923 billion.
Lastly, Bitcoin has recently lost the support of one of its most prominent advocates, Elon Musk. Musk tweeted that his electric car manufacturing brand, Tesla, has suspended Bitcoin payments for its electric vehicles on Tuesday.
Soon after the tweet, the BTC value dropped from $56,000 to nearly $49,000. Tesla cited that Bitcoin mining takes its toll on the environment as the reason behind its unexpected decision. However, it wasn’t enough to prevent the primary crypto from plummeting.
It’s worth noting that Tesla had acquired $1.5 billion BTC in February. Back then, the news sparked a revived interest in cryptocurrencies and cemented the industry’s credibility.
Nevertheless, Bitcoin is now trading at around $48,000, which is almost $10,000 less than this time last week. At the moment, it is difficult to expect a quick recovery or for BTC to reach the next resistance level at $51,000 very soon.
Ethereum managed to set yet another all-time high at $4,320 on Wednesday. Unfortunately, Bitcoin’s downfall affected the second crypto in command as well. Even if its losses are smaller, Ethereum has been trading in the red ever since. At the moment, Ethereum is trading at around $3,715.
Ripple’s XRP is again on the rise, albeit now, it only has a slim 3% increase to show. After a week of intense volatility, XRP can finish on top and hope for a better period next time around. XRP is trading now at around $1.55.
The rest of the altcoins also had a mixed week. Some of them, like Litecoin (down by 10%) and Chainlink(down by 11%), bled heavily for most of the past seven days. However, others traded in the green as if Bitcoin and the entire crypto-world hadn’t been shunned by one of their biggest supporters.
It was the case of Cardano, which is riding high on the back of a 27% value boost. The ADA token is back in the Top-5 cryptos by market cap after a tumultuous year in which it traded as low as $0.05. At the moment, Cardano is trading at around $2.35.
Cardano’s market cap is now around $77 billion, just $9 billion above Dogecoin’s cap. Dogecoin was also affected by Musk’s tweet, and it ends the week with a 6% value loss. Dogecoin is now trading at around $0.52.
Other Dogecoin-inspired tokens are on the rise. For example, Shiba Inu (SHIB) reports a 25% increase over the past seven days.
What’s in the News?
- According to this report, American money transfer company MoneyGram may allow its users to buy and withdraw cryptocurrencies at traditional brick-and-mortar locations on US territory.
- eBay is the first auction/sales website to support non-fungible tokens (NFT) on its platform.
Next Week’s Market Forecast
It’s disappointing to see Bitcoin zigzagging every time Elon Musk releases a tweet. However, the fact that the rest of the market holds its ground in the face of Bitcoin’s occasional slumps shows increased reliability.
While Bitcoin is taking one blow after another, other cryptocurrencies rise in both value and popularity. Of course, Dogecoin may hold the spotlight for a short time. But, Ethereum and Cardano are the most prominent names that should attract both new and seasoned investors for the foreseeable future.