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This Week’s Summary

• The cryptocurrency market looks set to end the week at a total market capitalization of $1,64 trillion.
• Bitcoin decreased by over 3% to reach around $41,500.
• Ethereum moved down by almost 2.5% to trade at around $2,450.
• XRP lost almost 5% in value this week, reaching around $0.55.
• Almost all altcoins have recently been trading in the red, with very few exceptions.
• The DeFi sector increased the total value of protocols (TVL) to around $57 billion.

Cryptocurrency Trends for the Week of Jan. 15-21, 2024: Market Analysis and Performance

This week, the cryptocurrency market took a break from its recent surge and positive events, such as the SEC’s approval of a BTC ETF in the US. Almost all assets have recently been seen trading in the red. While this trend could seem alarming at first sight, it is primarily a consolidating period for Bitcoin and Co. Meanwhile, the overall market capitalization decreased by almost $50 billion.

Bitcoin moved down by more than 3% this week. The king of cryptocurrencies did not manage to maintain the momentum following the approval for a BTC ETF. Instead, it dropped gradually, following a spectacular surge that took BTC close to $50,000. Recently, BTC has been seen trading at a little above $41,000.

Ethereum supporters have been eagerly awaiting an ETF ETH to be approved by the SEC. However, industry experts believe we are still a few months away from making that hope a reality. This uncertainty is unsuitable for the second crypto in command, which moved down by over 2% this week. At the time of writing, Ethereum was recently seen trading at around $2,470.

Most altcoins have been reverting to their December 2023 values, with very few seen trading in the green. For instance, XRP moved down by nearly 5%, Solana by 9%, Cardano by 6%, Avalanche by 12%, TRON by 3%, and Polkadot by 10%.

Only a handful of altcoins have been trading in the green. Notable examples include Dogecoin, which moved up by 6%, and Chainlink, which rose by 2%.

The Metaverse sector has seemingly shared the same sentiment as the rest of the crypto market, with most projects seen trading in the red. For instance, ICP moved down by 15%, Stacks by 12%, and Decentraland by 11%. Meanwhile, Axie Infinity moved down by 11%, The Sandbox by 3%, and Theta Network by 13%. Only Render has increased its value by nearly 3%.

The DeFi sector added almost $1.3 billion to the total value of locked protocols (TVL), now at $57.74 billion.

What’s in the News?

• The EU has tightened crypto regulations, especially transactions, citing anti-money-laundering protection for users.
• A recent survey showed Bitcoin had only a 12% usage rate in 2023 in El Salvador, one of the only two countries using BTC as legal tender besides the Central African Republic.

Next Week’s Crypto Market Forecast

The cryptocurrency market has been reducing its pace, albeit without incurring significant losses. The long-awaited bull run appears to be delayed, and most crypto enthusiasts hope it’s just around the corner. As 2024 rolls out, we can expect this kind of up-and-down movement to repeat. Hopefully, the trend will change starting next week.

About the Author

Born and raised in Romania, and currently living in Spain, Iulian discovered a knack for writing from a tender age and won some minor awards for fiction that didn't pay much.

Iulian became a content writer in 2011, and he's still doing it to some degree of success today. He is currently specialized in cryptocurrencies, technology, online marketing, and social media. In his free time, Iulian likes reading, traveling, and watching sports. His dream is to see Bitcoin reach $100,000, just so he can tell his friends “I told you so!”

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