Crypto.com Weekly Market Update (Week 3, 18/01/2021 - 24/01/2021)
BTC at $34.5K; ETH at $1,415; All indices dropped while DeFi rose.
Market Recap
Bitcoin continued its pullback, then partially recovered this week. On Thursday, Bitcoin dived from above $35,000 to $30,000, slumping by 15% in a day. On Friday, it further crossed below the critical $30,000 level, hitting lows of $28,000, but then rebounded sharply above $33,000. By the end of the week, Bitcoin was consolidating around $32,000. Despite falling below the 10-day moving average, Bitcoin managed to hold above the 50-day moving averages, indicating that it may continue to move sideways in the short term. According to TradingView, from Monday to Sunday, Bitcoin’s dominance in the market capitalization declined from 67% to 64%, indicating the relatively weak performance of Bitcoin against altcoins.
Meanwhile, Ethereum recorded an all-time high above $1,430 on Wednesday, and then it plunged to the $1000 level the next day. Showing strong resilience, it rallied back above $1,400 by the end of the week.
Overall, the price index dropped 4.72%, the volume index fell 7.40%; while the volatility index plunged 58.85%.
Check the latest prices on crypto.com/price.
Price Index
Most token prices decreased.
Top gainers: LINK (+7.63%), ETH (+5.70%), DOT (+3.61%), XTZ (+2.27%)
Top 3 losers: XMR (-11.78%), BTC (-11.40%), XLM (-10.78%)
Benchmark: BTC (-11.40%)
Chainlink’s bullish price action was supported by continuous growth in DeFi. Additionally, an entity called the “Grayscale Chainlink Trust (LINK)” was incorporated last month in Delaware, leading to rumors that Grayscale is starting an investment vehicle for LINK.
ETH was supported by its short supply and a potential network upgrade. Data shows that more than $3 billion of Ethereum (2% of total ETH supply) was locked in ETH 2.0. Furthermore, Ethereum developers published draft specifications for the network's next upgrade named “Berlin”.
A report showed that Polkadot was one of the hottest crypto in China now, attracting users and developers alike. Polkadot also saw decent ecosystem development - Moonstake and RockX announced that they will be offering staking on the network.
A tech company (TQ Tezos) had announced a project called “Homebase” that allows Tezos users to set up DAOs (decentralized autonomous organizations). Additionally, rumors circulated about a new Grayscale Trust for Tezos.
BTC's sudden plunge was caused by false rumors of a double-spend. Another contributing factor was Janet Yellen, who during her confirmation hearing for Treasury Secretary, said that cryptocurrencies were "a particular concern". Once again, the news was overblown, as Yellen's later statements showed a much more moderate stance. During the correction, MicroStrategy scooped up another $10 million worth of Bitcoin.
Volume Index
Most token volume fell except XTZ (+14.67%), ETH (+3.89%), LINK (+1.77%).
Top decrease: XLM (-42.78%), EOS (-37.09%)
Benchmark: BTC (-18.03%)
Volatility Index
All tokens’ volatility plummeted.
Top 3 decrease: DOT (-71.99%), ADA (-69.80%), XLM (-69.69%)
Benchmark: BTC (-60.82%)
Top News
Ethereum’s Ether Cryptocurrency Sets New All-Time Price High Near $1,440
Yellen: US government should consider benefits of cryptocurrencies and digital assets
Janet Yellen Updates Stance on Cryptocurrencies After Earlier Comments Led to Bitcoin Carnage
Top DeFi News
Kyber plans to become a hub for DeFi with massive DEX upgrade
Perpetual Protocol emerges as sixth-largest DEX after just one month
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