Crypto.com Weekly Market Update (Week 48, 23/11/2020 - 29/11/2020)
BTC at $18.4K; ETH at $587; Volatility skyrocketed.
Market Recap
During this week, both Bitcoin and Ethereum pulled back sharply after making new local highs. Bitcoin once surpassed above $19,500 at midweek, but quickly corrected to below $16,000 within 24 hours. The sharp plunge was possibly caused by profit-taking led by whales; according to CryptoQuant, the average Bitcoin inflows into major exchanges simultaneously reached 8-month highs.
By the end of the week, Bitcoin recovered to $18,000, staying slightly below the 10-day moving average.
The price action of Ethereum behaved similarly: it surged above $600 on Monday, and then retraced sharply below $500, rebounding to $550 by the end of the week.
Overall, all indices increased. The price, volume and volatility index grew +0.52%, +39.91, and +189.92% respectively.
Price Index
There was a mixed bag for tokens’ prices.
Top 3 gainers: XLM (+89.20%), XRP (+32.87%), ETH (+1.13%)
Top 3 losers: LINK (-10.51%), CRO (-6.93%), EOS (-3.98%)
Benchmark: BTC (-1.76%)
The top gainers’ bullish price moves were supported by the strong demand as the volume of XLM and XRP skyrocketed by 639.78% and 160.13% correspondingly and ETH’s volume also soared by 29.74%.
XLM's sharp rally marked its highest price level since November 2018, and was driven by market exuberance over the launch of a major system upgrade. Called Protocol 15, the upgrade comes with significant improvements that will greatly simplify the process of creating apps on the Stellar blockchain (ref).
The trading frenzy and surge in interest in XRP was driven by the imminent launch of the smart contract fork chain of XRP called Flare Network. This initiative is supported by Ripple’s investment arm, RippleX, and involves a massive airdrop of 45 billion tokens to XRP holders (ref).
ETH was supported by buying pressure from ETH 2.0 stakers, which has finalized its launch date of 1 Dec after a late surge in deposits helped the staking contract reach the minimum level to launch the beacon chain (ref).
Volume Index
All tokens’ volume soared, highlighting the exuberance caused by the continued influx of institutional investors.
Top 3 increase: XLM (+639.78%), XRP (+160.13%), XTZ (+60.05%)
Benchmark: BTC (+12.81%)
Volatility Index
All tokens’ volatility skyrocketed as the entire market corrected sharply around midweek only to recover quickly.
Top 3 increase: XLM (+251.91%), XMR (+200.57%), BNB (+180.44%)
Benchmark: BTC (+106.04%)