El Salvador President Nayib Bukele took a victory lap on Monday after the Bank of England’s British pound rapidly depreciated against the dollar. The institution has since resumed quantitative easing. Its action marks a clear pivot that many in the Bitcoin community predicted central banks would be forced into months in advance. Bukele’s Callout Bukele tagged the Bank of England with a triumphant “Told you,” over Twitter, scoring over 14,000 like and 2000 retweets from his followers. His brief comment…
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This Week’s Summary
- The Crypto Market ends the week at a total market capitalization of $169 billion.
- Bitcoin recovers from the Covid-19 blow and ends the week trading above $6,000
- Ethereum restarts its ascent towards the $135 resistance level.
- XRP ends a rough week to trade again at around $0.15 on Sunday
- Governments everywhere announce economic stimulants to prevent entire industries from a complete shutdown.
- Covid-19 spreads further and forces many countries to put their citizens under forced quarantine.
Crypto Trends 16th – 22nd of March 2020: PERFORMANCE & ANALYSIS
The last week saw the crypto market going through ups and downs again as the global pandemic continued its rapid spread. The good news is that most digital assets began to diverge from traditional equities and started trading again in the green towards the end of the week.
After a rocky Monday that saw its value drop to $4,583, Bitcoin regained momentum and experienced a steady rejuvenation throughout the week. The first time since the Covid-19 epidemic shook the financial markets, the most popular crypto began diverging from other assets.
Unlike traditional assets, Bitcoin is not regulated, so it started having fewer negative reactions to fear-induced news. Furthermore, several governments made announcements across the world of their support for the markets with economic stimulants led to a steady ascent that continued up to Sunday morning. At the moment, BTC is trading at $6,050.
However, the recent weeks of intense volatility have taken their toll on Bitcoin’s present value and future form. The news that many miners have temporarily shut down their equipment to save costs means that the upcoming halving may not occur in April. Instead, the month of May looks like a more suitable time for the long-awaited event.
The rest of the altcoins followed Bitcoin’s trajectory. Ethereum began the week trading as low as $105, but it regained its vitality and surged towards its current value of $127.53. It is now bouncing back towards the next resistance level at $135 and avoiding the support level at 120.
Ripple’s XRP is now trading at $0.152. However, throughout the week, it struggled with intense volatility and bounced back and forth between $0.13 and $0.17. The next resistance level is at $0.161, while the lowest support level is at $0.136.
What’s in the News?
- A private Italian bank enables Bitcoin trading for its 1.2 million clients.
- The U.K’s financial regulator, the Financial Conduct Authority (FCA), warns against potential cryptocurrency scams related to the CoronaVirus.
- Binance donates $1 million to blockchain education in South Africa as it prepares to enter the local market.
- Several countries impose forced quarantine and ask their citizens to remain homebound in a bid to stop the Covid-19 pandemic from spreading so quickly.
Next Week’s Market Forecast
In the upcoming week, the cryptocurrency market will be looking forward to more positive news from government subsidies and economic stimulants. Any form of support for the traditional financial markets will benefit the crypto market as well.
Cryptocurrency investors will be on the lookout for new opportunities that may arise from the ongoing pandemic and its influence on global markets. So far, the lack of any safety nets around Bitcoin and the other altcoins have benefited the industry, so they can hold up alone to further disruptions.