Bitcoin tested the $30,000 mark and Ethereum is trading under $2,000, movement of Cardano Coin (ADA) etc. Altcoins are suffering losses en masse. China is tightening the screws on the crypto market. Read about these and other key events in the weekly BeInCrypto review.
Major cryptocurrencies dynamics
The past week was unsuccessful for bitcoin (BTC) exchange rate. The main cryptocurrency consistently declined from the opening levels of the week, despite periodic attempts by the market to stabilize. The bulls tried to defend long-term support around $43,400 and recover above the round mark of $40,600. However, all this was only a temporary respite.
As a result, on May 19 bitcoin made a bearish break of the descending channel and fell almost to $28,000. At the time of writing, the BTC exchange rate was trading around $33,112, according to CoinMarketCap, a decline of almost 33% over the week.
That didn’t break the optimists, though. Thus, the head of Galaxy Digital Mike Novogratz still believes that the fall of bitcoin does not change the overall bullish trend and is a convenient opportunity to buy the currency.
Meanwhile, the rate of Ethereum (ETH) broke the recently formed tradition and unexpectedly suffered heavier losses compared to BTC at the end of the week.
During the last seven days, the coin broke through two psychological levels of $3,000 and $2,000, slipping into the red zone by almost 50%. At the time of writing, ETH was trading around $1,905.
It is worth noting that a number of onchain indicators continue to warn of an overheated Ethereum market. However, onchain analysis of other data shows that the ETH community still maintains a positive outlook and continues to walk the coins.
What else was going on this week
Overall, the passing week was not easy for altcoins, with most coins suffering losses. This also applies to the coins included in the top 10 largest cryptocurrencies by market capitalization.
It is worth noting Cardano Coin (ADA), which managed to overtake Binance Coin (BNB) in the moment and rise to the fourth place in the top 10 ranking. The project receives basic support due to a number of positive fundamental news. In particular, Cardano is preparing for the launch of the Alonzo hardfork, which will add long-awaited support for smart contracts to the ecosystem.
However, this has not helped ADA avoid the common market fate. At the time of writing, ADA has already moved up to number five in the top 10, showing a 50+% drawdown in seven days around $1.11.
Meanwhile, Binance Coin (BNB) and Polkadot (DOT) were the main losers of the week among the top 10 currencies, with a 7-day drawdown of more than 60% each at the time of writing.
The main pressure on the crypto market this week was China, which unexpectedly began to tighten the screws in the segment of digital currencies. First, Chinese regulators announced their intention to ban financial institutions from using cryptocurrency services and digital tokens in financial transactions.
And at the end of the week, Beijing said it would crack down on cryptocurrency mining in the country. As the authorities explained, they are doing this to protect the financial system and reduce carbon emissions.
However, analysts point out that panicked retail traders, not institutions, are behind the recent sales on the crypto market. This is indirectly confirmed by onchain data on bitcoin inflows to exchanges.
Meanwhile, Robinhood, a prominent U.S. online brokerage Robinhood has promised to disclose details of its IPO plans in the coming week, and the company could go public in late June, presumably. In that case, it would become the second publicly traded cryptocurrency company after the high-profile precedent set by Coinbase. Potentially, this news could inspire the crypto space.