With Bitcoin (BTC) trading at around $26,500, it’s been a lesson in patience for investors over the weekend. This week, the coin’s rising price has stagnated, as crypto traders hoping for a break in Bitcoin’s lackluster momentum may have to wait a little longer. In the meantime, there have been some highs and lows, in terms of who’s been the best and worst performers among the crypto market. So read on to find out who’s coming out on top this week-end.
1. Tracking the Biggest Winners and Losers of the Week in Crypto
Every week, the world of crypto brings some big ups and downs. In this post, we’ll explore the biggest crypto winners and losers from the week, from currency gains to crypto news.
- On the positive side of the ledger, Dogecoin gained nearly 20% in the last week, with investors citing renewed interest from Elon Musk and its “meme currency” status as reasons for its success.
- Facebook’s Libra project got another boost this week as the European Union’s Digital Financial Asset (DFA) regulatory framework came into effect. The rules provide some clarity for digital currency issuance in general, allowing the project to move ahead.
- Ethereum, the second-largest cryptocurrency by market cap, surged this week as investors poured money into the network’s new version, ETH 2.0.
- Bitcoin Cash, the fourth-largest cryptocurrency, took a big hit this week, dropping nearly 20% in 24 hours. The coin had been gaining in recent weeks, but the sharp decline could be attributed to investors cashing out after a long bull run.
- Ripple also took a dive this week, dropping about 5%. Investors had been bullish on the coin, but uncertainty about the currency’s ongoing legal battle with the U.S. Securities and Exchange Commission weighed on the market.
- Finally, Ethereum Classic plummeted this week, falling by nearly 15%, after an unknown hacker launched a 51% attack on the network. The attack allowed the hacker to double-spend coins, resulting in massive losses for holders of the coin.
Overall, it was another volatile week in crypto, but winners and losers were clear—with some coins and projects continuing on a positive trajectory, while others were left in the dust.
2. Watching Bitcoin Cruise Along at $26.5K
Bitcoin achieved new heights when it crossed the US$26,500 mark on December 21, 2020. Its remarkable rise was attributed to a number of factors, ranging from institutional adoption to widespread interest from individuals.
What’s truly amazing about the Bitcoin market is how it’s managed to follow its initial trajectory with remarkable smoothness. Instead of experiencing significant drops or experiencing huge fluctuations, Bitcoin’s progress has been steady. Investors can rest assured that the cryptocurrency is a reliable asset and won’t take them for a wild ride.
- Institutional Adoption: A notable driver of its success is the increased support from key institutions, such as PayPal, Square and Grayscale.
- Market Sentiment: Positive sentiment is reflected in Bitcoin’s rising hash rate, a measure of network activity that indicates miners are actively participating in the network.
- Liquidity: The increase in liquidity is also crucial to the sustained and rising value of Bitcoin, as increased liquidity means it becomes less volatile.
3. What Are the Altcoin Standouts?
Altcoins offer a wealth of potential when it comes to investments and trading opportunities. With hundreds of different tokens available, it can be hard to pick which coins to focus on. Here we take a look at some of the standouts among altcoins.
First, Ethereum (ETH) is a popular choice among traders. The open-source platform first debuted in 2015 and has since become the second-largest cryptocurrency by market capitalization. Proponents of Ethereum often cite the platform’s smart contracts capabilities and the large user base as reasons why it’s so sought-after. In addition, Ethereum also has the backing of a vibrant development community that is actively working on various improvements.
Other popular altcoins include Bitcoin Cash (BCH) and Ripple (XRP). Bitcoin Cash boasts bigger block sizes and lower fees than the original Bitcoin (BTC). This makes it suitable for large-scale payments and transactions. Ripple (XRP), on the other hand, is an enterprise-level payments platform that has been gaining traction in recent years. It has the backing of well-known banks and financial institutions, allowing users to transfer money more quickly than other cryptocurrencies.
4. Analyzing the Weekend Activity in Cryptocurrency
Crypto Market on the Weekend:
Analyzing weekend activity in the crypto market can be a bit tricky due to the fact that the market is decentralized and does not follow traditional business hours. Nonetheless, it does offer some information about the performance of certain digital assets.
On the weekends, several cryptos may experience a decrease in volume due to the lack of institutional investors. However, there are still several noteworthy trends that can be observed. Some digital assets may experience large increases in their market cap as investors seek to buy on the dips. Additionally, weekend trading can identify which coins have staying power as those that remain resilient and stable despite the low trading volume can be considered as safe bets as the market continues to evolve.
Furthermore, weekend trading can offer insight on how certain digital assets may perform when the trading activity is higher. Analyzing how a coin performs during low and high trading can help traders better understand the investment and its potential for future profits.
5. Taking Note of What’s Moving the Markets
With the financial markets being as volatile as ever, staying abreast of the latest news and macroeconomic developments is essential for anyone who wants to be able grasp what is currently influencing the markets. Here are five key things to take note of when it comes to the markets:
- Trade tensions: The high-stakes battle between the US and China has sent tremors throughout the global financial markets. While the situation as it stands is imposing some measure of uncertainty on the markets, it is wise to monitor any updates on the negotiation front.
- Political instability: In a world where the political landscape is in constant flux, it’s important to be aware of any recent developments in global politics that might have an impact on the markets. Pay attention to current events and how they might influence the markets.
- Interest rates: Changes in central bank interest rates can lead to significant market moves, as rising or falling rates can translate into liquidity gains and losses. Always be aware of any news regarding changes in the central banks’ policies.
- Market participants: For any market-focused investor, it’s key to understand the different participants in the market and how their activities can influence prices. It’s also worth noting that changes in participants could translate into changes in price levels.
- Regulatory environment: It’s important to note shifts in the regulatory environment, as they can play an important role in determining the direction of the markets. Be sure to pay attention to any news regarding current regulatory changes.
With a firm grasp of these five components, you can stay one step ahead of the markets and identify new trade or investment opportunities.
With the weekend coming to a close, investors have had their hands full watching the top crypto assets. After BTC stagnated at $26.5K, some investors witnessed big gains while other experienced losses. Nonetheless, whether you came up tops or bottom, the crypto markets remain as unpredictable as ever. Happy investing!