Global Risk and China FUD Result in a Bitcoin Rollercoaster: The Weekly Crypto Recap
There are no boring days in crypto, and this week, like a lot of others, has managed to definitively prove it. The past seven days have been an absolute rollercoaster in the cryptocurrency market, so let’s start with Bitcoin.
BTC’s price was sitting comfortably at around $47,500 last Friday and started improving slowly throughout the weekend. On Saturday, we saw an attempt at $49K, which was unfortunately rejected. On Sunday, the price retraced a bit, but nothing spelled major signs of trouble.
Then came Monday. Throughout that day, the price of Bitcoin started plummeting, and the trend continued throughout the next few days, as it reached a low of around $40,000 on Wednesday. The bulls stepped in and started the recovery process, bringing Bitcoin’s price up to about $45,000 today. But then China happened.
An announcement of more negative regulatory efforts sent BTC back to the lows of $40K as the entire market lost billions in a matter of hours. At the time of this writing, the cryptocurrency recovered to about $42K.
This was the faith of almost all altcoins as well. Looking across the board, most of them are charting notable weekly losses. Ethereum is down about 19%, Cardano is down 7%, BNB is down 18%, XRP – 15%, Solana – 10%, and so forth.
It’s interesting to see how the market is reacting to news that shouldn’t have such an impact. China has clamped down on cryptocurrencies multiple times in the past, and almost every time it does – the price goes down. Meanwhile, other important developments fail to make such a sharp difference.
For example, Twitter announced this week that users can now send tips over the social media using BTC – a huge use case for the cryptocurrency, which didn’t have a serious reflection on the market.
In any case, it’s very exciting to see how the next few days will shape up. Today’s dip was significant, but it’s worth noting that the long-term on-chain data remains firmly positive, potentially turning this into a buy-the-dip opportunity.
Market Capitalization: $1,894T | 24Volume: $131B | BTC Dominance: 42.2%
BTC: $42,459 (-11.1%) | ETH: $2,927 (-19%) | ADA: $2.25 (-7%)
This Week’s Crypto Headlines You Can’t Miss
Bitcoin Dipped to $40K Amid Global Stocks Pullback. Bitcoin, as well as the entire cryptocurrency industry, pulled back amid the tumble of global stocks. This was seemingly a consequence of the Evergrande debt crisis going on in China. It causes uncertainty throughout the entire financial market.
Bought The Dip: El Salvador Purchased Another 150 BTC as Bitcoin Dipped to $45K. The first country to formally recognize Bitcoin as legal tender, El Salvador, bought this week’s dip, adding 150 new bitcoins to its stash. This happened as the price pulled back from over $48,000 to $45,000 towards the beginning of the week.
Crypto Trading Now Official in Dubai Following Regulators’ Agreement. The Dubai World Trade Center Authority (DWTCA) announced this week that it has struck a partnership with the United Arab Emirates Securities and Commodities Authority, making cryptocurrency issuance, trading, and regulation completely legal within the DWTCA freezone.
Buying Spree: Third-Largest Whale Buys $170M Worth of BTC in Two Weeks. The third-largest Bitcoin wallet took full advantage of the adverse price actions this week. The entity added over 700 BTC to its collection as the price was decreasing. Now, its total holdings stand at around 112,202 BTC.
Trading and Mining Crackdown in China Escalates: Bitcoin Plunges $3K. Yet another wave of regulatory efforts aimed at furthering the cryptocurrency crackdown came from China this week. The country, once again, reiterated that digital assets are illegal, while also adding that financial organizations and payment companies are banned from facilitating cryptocurrency trading.
PayPal Announces New App That Includes Crypto Services. The leading online payment processor, PayPal, announced a new application that allows for multiple financial services previously foreign to the platform. This also includes certain cryptocurrency capabilities, hence furthering the company’s foray into the world of digital assets.