Bloody Week Sees Bitcoin & Co. Lose Billions Of US Dollars
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Weekly Summary
- The cryptocurrency market looks to end the week at a total market capitalization of $1,876 trillion.
- Bitcoin (BITCOMP) lost more than 9% in value in comparison to last Sunday.
- Ethereum (ETH-X) is up 10% after a turbulent week with steep value oscillations.
- Ripple's XRP (XRP-X) is down by more than 16% after major value loss.
- Binance Coin (BNB-X) increased by more than 13% throughout the week.
- The DeFi sector lost almost $5 billion from the total value protocols (TVL).
Cryptocurrency Trends for the Week of April 19-25, 2021: Performance and Analysis
The cryptocurrency market put an end to the bloodiest week of 2021 so far. After several weeks of optimistic value boosts, the market plummeted with major losses across the board. On Sunday, the bloodbath seemed to end with small recoveries from a handful of cryptocurrencies. The market capitalization dropped by more than 200 billion dollars over the week. As of the time of writing, it stands at $1,876 trillion.
Bitcoin started the week trading just below $60,000. However, it quickly went downhill as some investors decided that the “Hodl” game was not for them. By Tuesday, bitcoin was already trading as low as $52,000, and a series of positive news helped it regain some of its losses.
Firstly, PayPal’s (PYPL) mobile payment service, Venmo, allowed over 70 million users to buy, sell, and store cryptocurrencies. Some of the cryptos available on Venmo are Bitcoin, Litecoin (LTC-X), Ethereum, and Bitcoin Cash (BCH-X). Secondly, WeWork, one of the biggest providers of shared coworking space globally, announced that it would enable users to pay with cryptocurrencies.
It seemed that the bulls would get behind bitcoin again and push it beyond the $60,000 barrier for a couple of days. Unfortunately, the storm wasn’t over. And, news of U.S. President Joe Biden getting ready to tighten cryptocurrency regulations in the US hit bitcoin with formidable force.
The entire crypto market started bleeding heavily, and bitcoin took the biggest blow. In just a few hours, it dropped well below $50,000. More so, its market capitalization fell again under the $1 trillion mark to deter new investors even more. As the weekend rolled along, bitcoin's value steadily recovered. With a small but solid 2% daily increase, the most popular crypto should soon be on its way up again. Bitcoin has recently been trading at around $50,300.
Ethereum also had a wild week, but it came out better than bitcoin. The second crypto in command started the week trading in the green at around $2,200. While it lost more than $200 on Tuesday, it quickly recovered to set a new ATH (all-time high) at $2,641 on Thursday. That was the fourth ATH in a row since March.
The same news that destabilized bitcoin also hurt Ethereum. As a result, Ethereum lost more than $500 in just a few hours on Friday. Since then, it has recovered to finish the week with an overall 10% increase in value. Ethereum has been recently trading at around $2,340. The next level of resistance lies at $2,402. However, if it fails to reach it, Ethereum can fall on the next support at $2,200.
After a few good weeks of substantial value increase, Ripple’s XRP lost most of its gains in the past seven days. Contrary to Ethereum, XRP could not recover from the negative news and rumors in the market. Overall, it lost over 16% of its value throughout the week. XRP has been recently trading at around $1.13.
Most of the altcoins traded in the red throughout the week. While some of them have traded in the green over the weekend, the overall evolution is negative. Polkadot registered a significant 14% loss, and Cardano (ADA-X) decreased by almost 6%. Even Litecoin lost almost 12% of its value. The only altcoin that can look proudly at the past seven days is Binance Coin, which recorded an overall 13% increase in value. Binance Coin has recently been trading at around $513.
Elsewhere, the DeFi sector also registered a significant depreciation. Over the past few days, it lost almost $5 billion from the total value protocols (TVL), which now stands at nearly $55.39 billion.
What's in the News?
- Gemini conducted a survey revealing that over 14% of Americans own cryptocurrencies.
- Deutsche Telekom, one of the largest telecom companies globally, has bought a substantial amount of DeFiCelo’s native cryptocurrency, which remains undisclosed.
Next Week's Market Forecast
The next week should see the cryptocurrency market recover from its most recent defeat at the hands of negative news. If there is one thing that the industry’s 11-year-history has taught us so far, it is that the bulls do not allow the bears to settle on their gains for too long.
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