WMA: Historic Bitcoin Legalization Fails to Move the Market Out of Bear Territory
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 $1,525 trillion.
- Bitcoin is trading more or less at the same price as last week after a 0.38% devaluation.
- Ethereum is down by almost 13% in the past seven days.
- XRP has dropped by more than 10% over the week.
- Binance Coin, Polkadot, and Cardano have recorded disappointing losses throughout the week.
- The DeFi sector lost almost $9 billion in total value protocols (TVL).
- El Salvador became the first country in the world to make Bitcoin legal tender.
Crypto Trends 07th – 13th of June 2021: PERFORMANCE & ANALYSIS
The cryptocurrency market continues in the bear territory despite important events marking its long-term development in the second week of June 2021.
First off, El Salvador entered the history books as the first country in the world to formalize Bitcoin as legal tender. According to local reports, the “Bitcoin Law” was approved by 62 out of the 84 members of the Salvadoran Congress.
At the moment, the long-term economic impact of this historic realization is difficult to predict. However, we can witness its present impact on the market, which is disappointingly low. In fact, the news failed to lift the investors’ trust and hopes in a quick bullish run. As a result, the market capitalization took a turn for the worse and lost $120 trillion in just one week.
Bitcoin started the week trading as low as $31,000. Everyone hoped that the good news coming from El Salvador would stop the bleeding. And, for a few hours, it actually did. The primary cryptocurrency managed to get a short value boost that took it back above the $35,000 level.
Unfortunately, Bitcoin doesn’t seem to recover, even when an entire country accepts it as a legally recognized payment instrument. Bitcoin is now trading at around $36,000 for the third week in a row.
Bitcoin has been dragging for a while now. However, this week was a bad period for the altcoins as well. One of the regular climbers this year, Ethereum, failed to impress this week. More so, it lost almost 13% of its value, which coincidentally was the major gain it had recorded exactly one week ago. So, it’s a bad week for everyone, including Buterin’s brainchild. Ethereum is now trading at around $2,370.
Ripple’s XRP also lost its gains from the previous week and a bit on top. After a 10% drop in value, XRP is trading now at around $0.88. The next resistance level lies at$0.94. However, the way the market is bleeding now, XRP is more likely to fall on the next support cushion at $0.82 than to rise above.
Most of the other altcoins have traded in the red over the week and lost most of their gains from the previous month. Compared to last week, Binance Coin is down by 19%, Dogecoin is down by 16%, Polkadot decreased by 14%, and Cardano is down by more than 13%.
What’s in the News?
- The second-oldest bank in the US, State Street Corporation, has announced that it will release a digital unit focused on cryptocurrency investments.
- According to its President, El Salvador will use its many volcanoes to fuel Bitcoin mining on a large scale.
Next Week’s Market Forecast
After several weeks of uncertainty, we can now safely admit the bears’ massive control over the cryptocurrency market. More than that, JP Morgan analysts predict that this situation will continue for several weeks to come.
It’s definitely the worst time to capitalize on your crypto investment, especially if you made it in 2020 or early 2021. On the other hand, it’s the best of times to enter the market or diversify your portfolio if you have hesitated to do so before.