WMA: Bitcoin and the Altcoins Take a Dip as the Market Contracts

Get the weekly summary of crypto market analysis, news, and forecasts!

This Week’s Summary

• The crypto market ends the week at a total market capitalization of $1,164 trillion.
• Bitcoin is down by over 9% after a disappointing week.
• Ethereum decreased by almost 12% over the past seven days.
• XRP lost more than 12% in value this week.
• Almost all altcoins are trading in the red, with virtually no exception.
• The DeFi sector decreased the total value of protocols (TVL) to around $49 billion.

Crypto Trends 17 – 23 April 2023: Market Analysis and Performance

The crypto market is on a considerable downtrend following several weeks of visible improvement. Most of its assets are bleeding heavily at first sight. However, looking closely, we can observe that Bitcoin and the ensuing digital assets have only lost last week’s gains. Therefore, the verdict is that of a natural contraction after a month-long surge. Even the market capitalization reversed to the previous value after losing the $100 billion it had earned a week ago.

Bitcoin is back to a more familiar value, judging by its 2023 form, trading at around $27,500. The king of cryptocurrencies suffered a swift correction this week of nearly 10%. In fact, it only recovered slightly during the last hours of the weekend. For now, it is far from the $32,000 level, which it targeted the previous week. However, it is unlikely it will follow in this direction for too long.

Ethereum was trading above $2,000 for the first time in many months, only seven days ago. Unfortunately, the second crypto in command followed the market’s overall trend and diminished considerably this week. Following a nearly 12% value drop, ETH is now trading at around $1,800.

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Altcoins & DeFi

Most altcoins are trading deeply in the red, with some showcasing double-digit value drops. For example, BNB is down by 6%, XRP by 12%, and Cardano by 14%. Meanwhile, Dogecoin decreased by almost 12% and Polygon by 14%, just like Polkadot and Litecoin. Also, Shiba Inu is down by 11%, similar to Solana and Avalanche.

The Metaverse sector shares the same sentiment as the rest of the crypto market. For instance, Theta Network is down by 11% and Axie Infinity by almost 15%. Meanwhile, Decentraland decreased by 13%, ApeCoin by 12%, IPC by 9%, and The Sandbox by 14%.

The DeFi sector lost over $4 billion from the total value in locked protocols (TVL), now at $49.74 billion.

Crypto Market Analysis – What’s in the News?

• Despite Bitcoin’s meteoric rise, Tesla has yet to sell any BTC from its extensive reserves in the first quarter of 2023.
• The Texas House of Representatives passed a bill requiring crypto exchanges to display proof of reserves.
• Gemini, the US-based crypto exchange, is expanding in Asia by opening a new office in India.

Next Week’s Crypto Market Forecast

Btc

Bitcoin

$26.226
price

0.16393%
price change

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The crypto market is seeing red for the first time in weeks. However, it doesn’t mean the bears are back in control. On the contrary, the sector is witnessing a standard regression period while remaining solid for future development. Most likely, the downtrend will reverse in the coming weeks.