WMA: Bitcoin Drops Below $50k amid Fears of New COVID Variant

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This Week’s Summary

  • The Crypto Market ends the week at a total market capitalization of $2,287 trillion.
  • Bitcoin is down by almost 9% and trading below $50,000.
  • Ethereum is up by almost 3% after a good week.
  • XRP dropped by almost 12% to trade further below $1.
  • Almost all altcoins have traded in the red for most of the week.
  • The DeFi sector lost nearly $3 billion in Total Value Locked in protocols, which now stand at $100.1 billion.

Crypto Trends 29th of November – 05th of December 2021: Market Analysis and Performance

The crypto market is not enjoying its best of times. However, this time, it has very little blame for the bloodbath in which it is sinking. This week, news of a new, more contagious COVID variant has struck the global markets. And, the crypto sector lost more than $150 billion in market capitalization.

Bitcoin is this week’s biggest loser after losing more than $5,000 over the past seven days. Instead of surging back towards the $60,000 level, the king coin went in the other direction. It is currently trading at around $49,000, and it is the first time seesawing under $50k since October.

However, not everyone saw a tragedy in Bitcoin’s sudden slip. Many investors chose to buy the dip. For instance, El Salvador purchased another 150 BTC for around $7.3 million. The only state in the world accepting Bitcoin as legal tender is enhancing its crypto reserves with every passing day.

Ethereum did not choose to follow in Bitcoin’s footsteps. Instead, it increased in value by over 3% to trade comfortably above the $4,000 level. At the moment, it is eyeing a similar surge to the one it had in October. Back then, the second crypto in command was setting one ATH after another.

Altcoins & DeFi

Ripple’s XRP is hanging by a thread in the top-10 cryptocurrencies by market cap. After yet another disappointing week, XRP is now trading below $0.8. Furthermore, its market cap has dropped by over $7 billion.

Elsewhere, Cardano is down by almost 7%, Polkadot is down by 14%, and Litecoin dropped by 17%.

Not too many altcoins avoided bleeding this week. Among the few ones celebrating is Solana, with a 2% increase, and MATIC, with a whopping 36% value boost.

The DeFi sector lost roughly $3 billion in total value protocols (TVL), which now stand at nearly $100.1 billion.

Crypto Market Analysis – What’s in the News?

  • Jack Dorsey stepped down as Twitter CEO.
  • Elon Musk says Web 3.0 sounds like BS.
  • Yellen and Powell concede that inflation isn’t transitory

Next Week’s Market Forecast

Bitcoin live price
price change

The market sentiment is relatively negative at the moment. The reports about new COVID variants and restrictions affect global markets, and the crypto sector is not an exception. Nevertheless, the last hours of the weekend showed minor improvements. Bitcoin and a handful of altcoins are showing revival signs. And, while not extraordinary, they may be enough to boost our optimism for the next week.

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