What happened in the cryptocurrency market over the past seven days
The last seven days have inspired cryptocurrency investors. Every time after overcoming bitcoin milestone of $ 20,000, $ 30,000, $ 40,000, $ 50,000 and, finally, $ 60,000, investors nervously recalled the winter of 2017-2018, which first presented a meteoric rise in cryptocurrencies, and then a crushing fall. Therefore, in the current rally season, each week passed without any particular shocks consolidates the achieved success in the eyes of investors and, thereby, becomes part of the foundation that can become the basis for further growth of cryptocurrency.
The importance of bitcoin was recognized by such a giant as Deutsche Bank. The analytical department of the bank said that while the “first cryptocurrency” has huge growth potential, since the user base is still very small and has room to grow. The bank’s specialists called bitcoin an asset “too important to ignore.” They also noted that the capitalization of the “first cryptocurrency“, which recently exceeded $ 1 trillion, corresponds to 102% of Japanese yen, 65% of euros, 53% of US dollars and 904% of pounds in circulation. However, due to the still low trading volumes relative to capitalization, several large transactions of buying and selling bitcoin can significantly affect its value. Moreover, analysts drew parallels between Bitcoin and Tesla, since both growth record holders, according to experts,
During the reporting seven-day period, the total capitalization of the cryptocurrency market increased slightly and as of Wednesday evening, March 24, 2021, amounted to $ 1,770.3 billion, which is 4.34% more than at the end of the last reporting period.
1. Bitcoin (BTC).The “first cryptocurrency” for the last seven days felt confidently at the level above $ 50,000, but it could not overcome the barrier of $ 60,000. According to Bobby Lee, co-founder and former head of the large cryptocurrency exchange BTCC, the current stagnation in value should not worry investors much, since by the summer of 2021 the cost of digital gold will exceed $ 100,000. The expert made such a conclusion based on the analysis of Bitcoin market cycles. “Bulls take over the cryptocurrency market every 4 years, and now they are not even just bulls, but bulls on steroids. I think that by July more than $ 100,000 will be given for 1 BTC, ”he said. However, he does not consider himself a blind optimist and added that if the bulls manage to somehow push the value of BTC to $ 300,000, then even a small pullback from this mark could lead to a market collapse. comparable to the collapse of the beginning of 2018, that is, a fall in value by 80-90%. He urged investors to sensibly assess the risks, taking into account such a possibility. Another iconic person in the financial world who spoke about bitcoin for $ 100,000 was Jordan Belfort, whose story formed the basis of the film “The Wolf of Wall Street”. In an interview with Fortune, he said that in 2017 he made a mistake, calling Bitcoin a dummy that is about to burst. “At that moment, I was partially right, assuming that bitcoin would not last long at the levels it had reached. And he fell. However, I believed that he would not be able to recover from the fall. But he could, ”said Jordan Belfort. He noted that he sincerely believed that regulators would erase the very idea of cryptocurrencies to smithereens, as they seemed to be the perfect vehicle for money laundering. However, the looming inflation on the world due to the pumping of money into the economy that survived the pandemic forced him to change his mind. The very limited and unchanging essence of the emission of the “first cryptocurrency” forced almost all market participants to look at bitcoin. He noted that in 2021, Bitcoin has the largest buyer base in terms of volume and diversification in history, and this may be just the beginning.
On Wednesday evening, March 24, 2021, the cost of the “first cryptocurrency” was $ 56778, following the results of the past seven days, the cost of bitcoin has increased by 3.86%. The market capitalization of “digital gold” for the week increased by $ 43 billion, amounting to $ 1.062 trillion. The share of the “first cryptocurrency” in the total market capitalization decreased by 0.18 percentage points and dropped to 60% at the end of the last reporting period.
2. Ethereum (ETH).“Ether” continued, without unnecessary shocks and surprises, to follow in the wake of bitcoin. However, some experts point out that this behavior of the crypto asset may soon come to an end. Moreover, there are bold voices that the “ether” will be too tough to even displace bitcoin from the first place. This point of view is shared by Messari analyst Ryan Watkins. “Bitcoin looks more attractive when compared to Ethereum as a store of value – its financial policies are well defined and the supply of coins is limited, the network is secure. But the second largest cryptocurrency by capitalization after switching to Proof-of-Stake in the second version of the protocol will have every chance to challenge Bitcoin, ”he announced. Also, he did not forget to note the controversial proposal to burn part of the transaction fee, which, by the way, will most likely be implemented, despite the objections of some of the miners. A proposal that will add a deflationary mechanism to Ethereum. “If the Ethereum network is safer and with better monetary policy, what can objectively Bitcoin be able to counter this?” – the expert asks.
On Wednesday evening, March 24, 2021, the cost of Ether was $ 1,731. Following the results of the past seven-day period, the value of the asset fell by 1.93%. The share of Ethereum (ETH) in the total cryptocurrency market capitalization decreased by 0.75 percentage points to 11.27%.
3. Binance Coin (BNB). On Wednesday evening, March 24, 2021, BNB was valued at $ 264.28. Following the results of the past seven-day period, the value of this cryptocurrency increased by 5.22%, and the asset again moved from fourth to third place. The share of Binance Coin (BNB) in the total cryptocurrency market capitalization increased by a modest 0.02 percentage point to 2.31%.
4. Cordano (ADA). On Wednesday evening, March 24, 2021, the ADA was worth $ 1.14. The fall for the week is 8.06%. The share of Cordano (ADA) in the total cryptocurrency market capitalization is 2.07%.
5. Polkadot (DOT). As of Wednesday evening, March 24, 2021, the DOT price was $ 35.77. Following the results of the past seven-day period, the value of this cryptocurrency increased by 2.55%. The share of Polkadot (DOT) in the total cryptocurrency market capitalization decreased by 0.03 percentage points to 1.87%.
6. Ripple (XRP). For Ripple, the main threat is still the ill-fated SEC lawsuit hanging with the sword of Damocles over the company. Nevertheless, the SEC did the company a favor by clarifying its position on persons who are somehow associated with XRP tokens. Thus, the US Securities and Exchange Commission stated that neither investors, nor exchanges, nor other platforms, except for Ripple itself and its employees, violate SEC rules when dealing with XRP. This information was announced in response to a question from the judge considering the case, whether all token sales violated the law. Representatives of Ripple, almost immediately after the announcement of this information, issued a statement that now all sites that have suspended XRP trading due to fears of close attention from the SEC can confidently resume trading.
As of Wednesday evening, March 24, 2021, the value of Ripple (XRP) was $ 0.5566. The cryptocurrency has gained 19.70% over the past seven days. The growth was largely due to the SEC’s comment about the lack of responsibility for token trading. The share of Ripple (XRP) in the total cryptocurrency market capitalization increased by 0.18 percentage points to 1.43%.