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This Week’s Summary

• The cryptocurrency market looks to end the week at a total market capitalization of $807 billion.
• Bitcoin lost almost 3% during a highly volatile week.
• Ethereum decreased by 7% over the past seven days.
• XRP lost nearly 9% of its value this week.
• Almost all altcoins have been trading in the red, with very few exceptions.
• The DeFi sector maintains the total value protocols (TVL) at around $41 billion.

Cryptocurrency Trends for the Week of Dec. 12-18, 2022: Market Analysis and Performance

The crypto market ended a roller-coaster of a week that saw considerable volatility, shocking news, and unexpected events. Most assets started trading in the green during this period but ended the week severely battered and bleeding. Meanwhile, the market capitalization increased by almost $20 billion, climbing again above the $800 billion mark.

Bitcoin began the week eagerly waiting for the latest CPI report from the Bureau of Labor Statistics. When that came through positively, the king crypto skyrocketed and reached $18,250 on Wednesday. Despite the surrounding optimism, the markets quickly contracted, and most assets started plummeting. BTC constantly dropped ever since and couldn’t even hold onto the $17,000 level. Recently, Bitcoin has been seen trading at around $16,700.

Ethereum has not been faring any better. The second crypto in command has been wobbling indecisively for over a month. This week’s loss of over 7% brought its value below $1,200 and into the danger zone around the $1,000 level. If it can't recover, that is where Ethereum will most likely finish this year.

One of the biggest shock news this week came from the ongoing FTX-SBF bankruptcy saga. On Tuesday, the SEC announced charges against Sam-Bankman Fried, who was in the custody of the Bahamian police at the time. His subsequent arrest rippled through the market, increasing fear, uncertainty, and doubt. The former CEO of FTX is now awaiting extradition and preparing for a most likely arduous legal battle.

Meanwhile, the crypto community panicked after rumors of Binance’s dubious solvency emerged on Twitter. The crypto exchange quickly rebuked the gossip, but the threatening uncertainty is still out there, especially after what happened to FTX.

Altcoins & DeFi

Most altcoins have been trading in the red, even if they showed some promising mid-week spikes. For example, XRP moved down by 9%, BNB by 14%, Polygon by 11%, and Shiba Inu by 8%. Meanwhile, other coins recorded even bigger losses, such as Dogecoin, down by 20%, Cardano, down by 16%, and Litecoin, down by 18%.

Only a handful of altcoins could take pride in their movements this week. For instance, UNUS moved up by 6% and Toncoin by nearly 40%.

This week, the Metaverse sector has been in the same boat as the rest of the crypto market. ApeCoin decreased by 16%, ICP by 18%, and Axie Infinity by 17%. As well, The Sandbox moved down by 19%, Decentraland by 18%, and Theta Network by 13%.

The DeFi sector added almost $500 million to the total value of locked protocols (TVL), now at nearly $41.15 billion.

What’s in the News?

• Lodestar, a lending protocol, has suffered a $6 million flash loan attack.
• FSB is aiming for bank-like crypto regulation in response to FTX.
• Binance auditor Mazars suspended all its crypto work.

Next Week’s Crypto Market Forecast

The crypto market is far from its all-time low, but it has not been thriving either. Extreme volatility, rumors, and shock still have quite an effect on its performance and credibility. On the other hand, most of the other markets have been facing the same issues. So, it’s not surprising to see the crypto industry struggling to impress in this bleak economic environment.

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 is 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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