Crypto.com Weekly Market Update (Week 8, 22/02/2021 - 28/02/2021)
BTC above $47K, ETH above $1,500; Price index dropped while volume and volatility indices surged.
Market Recap
Bitcoin pulled back sharply this week. From Monday to Friday, it plunged from its highs above $57,000 to below $44,000, losing around 24% in a week. It crossed below the 10-day moving average at midweek, and may further test support at the 50-day moving averages. At the beginning of this week, it had recovered to above $47,000.
According to TradingView, Bitcoin’s dominance in market capitalization retraced from the local highs from near 64% to around 62%. According to Bybt, the number of outstanding Bitcoin futures also declined from record highs of $19.1B to $14.9B along with the pullback.
Moving in tandem with Bitcoin, Ethereum sharply dove from above $2,000 on Monday to below $1,400 on Sunday, losing more than 30% in a week. At the beginning of this week, Ethereum had recovered to above $1,500.
Overall, the price index dropped 24.84%, while the volume index surged 42.11%, and the volatility index skyrocketed 210.32%.
Check the latest prices on crypto.com/price.
Price Index
All token prices fell except ADA (+8.96%).
Top 3 losers: EOS (-37.72%), LINK (-31.71%), ETH (-31.45%)
Benchmark: BTC (-24.33%)
Cardano (ADA) announced that the “Mary” protocol update will be launched on mainnet on March 1 (ref). It will bring multi-asset functionality with the launch of native tokens. Charles Hoskinson, the founder of Cardano, also hinted that the network may introduce smart contracts in the coming months (ref).
Ethereum flash-crashed 63% to $700 on the US-based exchange Kraken last Monday, 75,500 ETH worth approx. $131.5M changed hands at that time (ref).
Volume Index
Top 3 increase: ADA (+75.89%), BTC (+72.54%), DOT (+18.06%)
Top 3 decrease: ATOM (-39.22%), XMR (-30.58%), EOS (-26.31%)
Benchmark: BTC (+72.54%)
MicroStrategy (ref) and Square (ref) added around $1B and $170M BTC respectively. Strategists from JPMorgan suggested investors allocate 1% to Bitcoin (ref).
Volatility Index
All token’s volatilities skyrocketed except ATOM (-30.86%).
Top 3 increase: XLM (+231.78%), BTC (+200.14%), XTZ (+130.90%)
Benchmark: BTC (+200.14%)
Top News
Coinbase's S-1 filing is now public, setting stage for a direct listing on Nasdaq
Bitcoin Tanks to $47K as Janet Yellen Calls It "Extremely Inefficient"
JPMorgan note to clients endorses 1% allocation to Bitcoin as a hedge
North America’s first Bitcoin ETF sees explosive debut with $564M in assets
Total estimated crypto users worldwide tops 100 million, survey finds
Top DeFi News
Aave and Balancer announce hybrid AMM liquidity pool & lending product
Brave unveils plans for DEX aggregator and NFT wallet in next browser
Transaction batching protocol Furucombo suffers $14 million “evil contract” hack
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