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This Week’s Summary

• The cryptocurrency market looks set to end the week at a total market capitalization of $1,050 trillion.
• Bitcoin dropped by over 5% to around $25,700.
• Ethereum decreased by nearly 8% to $1,750.
• XRP lost nearly 4% in value this week.
• Almost all altcoins have been trading in the red, with virtually no exceptions.
• The DeFi sector decreased the total value of protocols (TVL) to around $45 billion.

Cryptocurrency Trends for the Week of June 5-11, 2023: Market Analysis and Performance

The cryptocurrency market looks set to close one of its worst weeks this year following an unexpected crash. This time, most of the major altcoins plummeted, recording huge double-digit losses. The shock wave traveled quickly throughout the market in a horrific bloodbath. Meanwhile, the market capitalization dropped by over $100 billion, dangerously close to dipping below the $1 trillion mark.

Despite losing over 5% in value this week, Bitcoin appears to have maintained its dominance. The king of cryptocurrencies has remained above the $25,000 mark for now. However, it might be difficult to hike back up above the safe $28,000 threshold.

Ethereum also dipped this week and fell considerably below the $2,000 level. The second crypto in command moved down by around 8%, which takes its value to nearly $1,740. It is a disappointing fall from grace for ETH after weeks of inching closer to the $2,000 prize.

Altcoins & DeFi

Most altcoins have been trading in the red, with some losing up to 30% of their value. This has been the case for Cardano, Solana, and Polygon. Elsewhere, Dogecoin moved down by 15%, Litecoin by 18%, Polkadot by 16%, and TRON by 14%.

XRP can count its blessings after losing only a little above 3% in value this week. However, most other altcoins have been drowning deep into the red with significant losses.

The sudden crash resulted from the US authorities continuing their crackdown on cryptocurrencies. This week, the United States Securities and Exchange Commission (SEC) filed lawsuits against Binance and Coinbase, the industry’s largest crypto exchanges.

Moreover, the SEC officially classified 13 cryptocurrencies as securities, including Cardano, Solana, and Polygon. This decision could lead to many crypto exchanges delisting the assets, thus forcing holders to sell them hastily.

The Metaverse sector shares the same sentiment as the rest of the crypto market. For instance, The Sandbox moved down by 34%, Render Token by 28%, and ICP by 24%. Meanwhile, Axie Infinity decreased by 32%, Decentraland by 30%, ApeCoin by 26%, and Theta Network by over 23%.

The DeFi sector lost nearly $5 billion from the total value in locked protocols (TVL), now at $44.77 billion.

What’s in the News?

• Several banks are withdrawing their support for Binance US following the SEC’s recent lawsuit against the crypto exchange.
• After 12 years, the US Department of Justice identified the infamous Mt. Gox Hackers.
• Vitalik Buterin continues to fund COVID-19 relief projects with a new $100 million donation.

Next Week’s Crypto Market Forecast

The cryptocurrency market has been reeling after a terrible week, especially for the altcoins. Meanwhile, the US authorities continue their crusade against crypto and don’t leave enough room for optimistic forecasts. On the other hand, more seasoned assets like Bitcoin, Ethereum, and Ripple’s XRP don’t seem to have suffered from the blow as hard as others. Their recovery should occur sooner and bring balance to the market.

About the Author

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

Iulian became a content writer in 2011, and he 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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