Bitcoin Drops Below $40,000 As The Crypto Market Takes Another Dip

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This Week’s Summary

• The cryptocurrency market looks to end the week at a total market capitalization of $1,743 trillion.
• Bitcoin (BITCOMP) dropped by more than 8% after a rough week.
• Ethereum (ETH-X) decreased by over 7% over the past seven days.
• XRP (XRP-X) lost only 1% of its value in the past week.
• Almost all altcoins are trading in the red after a highly volatile week.
• The DeFi sector lost roughly $14 billion from the Total Value Locked in protocols, which now stands at $70.94 billion.

Cryptocurrency Trends for the Week of Feb. 14-20, 2022: Market Analysis and Performance

The global political crisis and talks of an imminent war in Ukraine have affected every financial sector in sight. The crypto market is not an exception, which is visible in this week’s $150 billion drop in market capitalization. Furthermore, most of its assets lost important value points and are now drowning in a bloodbath.

As always, Bitcoin is the first sign of doom or gloom in the crypto sector. This week, the king coin lost more than 8.5% in value and dropped from $42,000 to a little over $38,000. It’s not the best of times for BTC as it struggles with high volatility, short bull runs, and sell-offs.

Ethereum has been trading in the red for almost 10 consecutive days now. Last week, the second crypto in command said goodbye to trading above the $3,000 level. Now, it struggles to remain above $2,600. Following a 7% value drop, Ethereum is slowly but steadily drifting away from its all-time high at nearly $5,000. At the moment, its chances of reaching those heights again are slim to none at all.

Altcoins & DeFi

Ripple’s XRP managed to lose only a little over 1% of its value this week. It’s not much, but many could consider this a small win. XRP had registered a 20% increase last week. So, holding onto its recent gains is a peculiar triumph for a cryptocurrency that is always on a downtrend.

Elsewhere, most altcoins are following the crypto market downtrend, as we speak. For example, Cardano (ADA-X) dropped by 9% and Polkadot (DOT-X) by 8%. Furthermore, Dogecoin (DOGE-X) is down by 10%, and Shiba Inu (SHIB-X) decreased by more than 15%. On the other hand, Avalanche (AVAX-X) is among the few cryptocurrencies trading in the green following an increase of over 1%.

The Metaverse sector is also bleeding, with most projects losing precious value points. For example, Decentraland (MANA-X) is down by 3%, and The Sandbox (SAND-X) dropped by more than 20%. Lastly, Axie Infinity decreased by 3% and Theta Network lost 18%.

The DeFi sector lost nearly $14 billion from the total value protocols (TVL), which now stands at almost $70.94 billion.

What’s in the News?

• China warns against using the metaverse for illegal fundraising.
• Canadian trucker gets $8,000 in BTC during a live-streamed protest.
• Ethereum founder says Canada’s crypto seizures are dangerous.

Next Week’s Crypto Market Forecast

Recently, the crypto market has sustained severe damage coming on the back of geopolitical and economic crises. It is a period benefiting investors who buy the dip and choose hodling over selling out. Unfortunately, we can expect it to continue as long as the international tensions affect the global financial world.