Over the past week, the cryptocurrency market has experienced significant fluctuations in the valuations of leading assets. Here is a detailed review of the most important events prepared by Sebastian Seliga, zondacrypto stock exchange analyst.
Sebastian Seliga points to declines in prices of major cryptocurrencies
Bitcoin (BTC) fell below the $65,000 level, while ether (ETH) fell below $3,400. Many altcoins also experienced double-digit losses in a single day. These sharp price movements have caused concern among investors and prompted many to re-evaluate their investment strategies.
TOTAL3 and moving average
The TOTAL3 index, which tracks the market capitalization of all cryptocurrencies excluding Bitcoin and Ether, has fallen below its 200-day moving average and is currently struggling to regain that level. This is an important indicator that may suggest further difficulties for the altcoin market in the near future.
Capital outflows and volume stability
Over the last week, a weakening of capital inflows from the so-called “smart money” compared to previous weeks. Today, clear profit taking was observed, which may indicate increasing caution among investors. Trading volume levels remain stable, reaching neither the high nor low levels seen during the FUD period.
Bitstamp acquired by Robinhood
In a context of positive news, Robinhood announced plans to acquire global cryptocurrency exchange Bitstamp for approximately $200 million. This transaction could significantly impact the availability and popularity of cryptocurrencies among Robinhood users, which could have long-term benefits for the market.
The most important market events
Last week, the cryptocurrency market witnessed several key events that may have a long-term impact on its development and dynamics. Here are the most important ones:
Bitcoin ETFs are seeing significant outflows. Over the past five days, US-listed bitcoin ETFs have recorded net outflows of $900 million. This is the worst result since mid-April, which may suggest a decline in institutional investors’ interest in this financial instrument. (Source: CoinDesk)
MicroStrategy Continues Bitcoin Purchases. MicroStrategy, led by Michael Saylor, announced the purchase of another 11,900. bitcoins for USD 786 million. The company currently holds 226,331 BTC worth nearly $15 billion. The move highlights Saylor’s continued confidence in the cryptocurrency’s long-term potential. (Source: CoinDesk)
BTC price predictions. Wall Street analysts, including Cathie Wood, predict that the price of BTC may reach up to USD 1 million, and in the case of greater involvement of institutional investors, even USD 3.8 million. These optimistic forecasts may attract new investors to the market. (Source: MSN)
Ripple’s legal problems. A California court has decided that one of the class-action lawsuits against Ripple can be accepted. You will then be able to move on to the court process. This is a continuation of the company’s long-term legal problems, which may affect its future and the price of the XRP token. (Source: CoinDesk)
Decrease in the value of salt relative to ether. The value of salt relative to ether dropped to its lowest level in three months, which may suggest further losses for the first coin. Analysts predict that this trend may continue in the near future. (Source: CoinDesk)
New regulations in Great Britain. British regulator FCA has arrested two people linked to an illegal cryptocurrency business worth £1 billion. These actions are part of a wider effort to increase oversight of the UK cryptocurrency market. (Source: CoinDesk)
Forecasts and expectations
Despite the current difficulties, analysts remain optimistic about the long-term prospects of the cryptocurrency market. It is expected that upcoming events, such as the Bitcoin halving, may act as a catalyst for further price increases. However, investors should remain cautious and monitor current events to adapt their investment strategies to dynamically changing market conditions.
To summarize, the cryptocurrency market has witnessed both positive and negative events this week. On the one hand, MicroStrategy’s continued bitcoin purchases and optimistic price forecasts may attract new investors. On the other hand, outflows from BTC ETFs and Ripple’s legal problems may introduce some uncertainty to the market.
