Crypto.com Weekly Market Update (Week 4, 25/01/2021 - 31/01/2021)
BTC at $33.7K; ETH at $1,323; All indices rose.
Market Recap
This week, Bitcoin fluctuated within the $30,000-$35,000 range from Monday to Thursday. On Friday, it experienced an intraday price spike: It once rallied above $39,000 thanks to Elon Musk’s shout-out to Bitcoin on Twitter, but it quickly pulled back to $34,000 on the same day. By the end of the week, it was consolidating at $33,000-$34,000.
While fluctuating around the 10-day moving average, Bitcoin managed to stay above the 50-day moving average, signaling that it might continue to trade sideways in the near term. According to TradingView, Bitcoin’s dominance in market capitalization once hit 66% alongside its price spike, but it then slid to 63% on Sunday.
Meanwhile, Ethereum recorded a new all-time high above $1,470 on Monday. By the end of the week, it was consolidating at around $1,350.
Overall, the price index increased 3.72%, the volume index grew 12.87%; while the volatility index surged 46.33%.
Check the latest prices on crypto.com/price.
Price Index
Top gainers: XLM (+14.75%), EOS (+8.21%)
Top losers: DOT (-8.34%), XTZ (-8.21%)
Benchmark: BTC (+3.80%)
XLM was reportedly being tested by messaging app Signal, which has been experimenting with monetization.
Polkadot's price dropped last week despite being included in Grayscale’s new crypto trust filling and received support from Pantera Capital, a blockchain investment firm and hedge fund.
Volume Index
Top 3 increase: XLM (+85.45%), EOS (+28.06%), BTC (+19.04%)
Top 3 decrease: XMR (-34.72%), XTZ (-25.00%), ATOM (-22.56%)
Benchmark: BTC (+19.04%)
Volatility Index
Top 3 increase: XLM (+110.66%), BTC (+87.85%), EOS (+40.65%)
Top 3 decrease: XTZ (-59.63%), LINK (-39.58%), ETH (-36.19%)
Benchmark: BTC (+87.85%)
Bitcoin’s volatility was driven by a number of events that happened during last week. First, the WallStreetBets saga, where Robinhood restricted retail trading on multiple stocks and cryptocurrencies. Even though it was not directly related to Bitcoin, it might have served as a wake-up call to remind people of the benefits of decentralization. Ray Dalio, CIO of Bridgewater, the world’s largest hedge fund, admitted that Bitcoin had “succeeded in crossing the line from being a speculative idea [...] and probably having some value in the future”. Elon Musk also changed his Twitter bio to “Bitcoin”, which prompted Bitcoin’s price briefly to surge over 15%. According to Visa’s CEO, the company might add cryptocurrencies to its payments network.
Top News
Elon Musk-Prompted Bitcoin Price Surge Causes Liquidation of $387M in Shorts
Ethereum’s Ether Cryptocurrency Sets New All-Time Price High Above $1,450
Coinbase's site down, Robinhood restricts crypto trading as bitcoin surges past $37,000
Visa reaffirms commitment to crypto payments & fiat on-ramps
Visa's Q1 earnings call reveals details about its crypto strategy
Dogecoin Spikes 1,120%, Avoids Correction as On-Chain Volume Skyrockets
Top DeFi News
Digital Asset Manager Grayscale Eyes DeFi Space With New Trust Filings
Uniswap (UNI) and Compound (COMP) hit new highs as DeFi TVL reaches $27.6B
Cardano's (ADA) Smart Contract Environment Plutus Goes Live in Devnet
Circle enables seamless USDC-USD transfers, providing a bridge from banks to DeFi
Aave’s Founder Invests to Grow DeFi’s Head Start on the Banks
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