WMA: Bitcoin Taps and Loses $24,000 as Memecoins Soar

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This Week’s Summary

  • The crypto market ends the week at a total market capitalization of $1,070 trillion.
  • Bitcoin is down by nearly 2% after intense seesawing this week.
  • Ethereum increased by almost 2% over the past seven days.
  • XRP lost more than 1% in value this week.
  • Almost all altcoins are trading in the red, with a few exceptions.
  • The DeFi sector decreased the total value of protocols (TVL) to around $45 billion.

Crypto Trends 30 January – 05 February 2023: Market Analysis and Performance

The crypto market shrinks temporarily after a bullish January. The New Year has brought spectacular and largely unexpected gains across the board. Therefore, a slight contraction was always in the cards for most assets. Fortunately, the losses are less significant. This is visible in the market capitalization, which dropped by only $1 billion this week.

Bitcoin seesawed for most of the week between $23,000 and $24,000, touching the latter on Thursday. Despite reaching a 5-month high, BTC did not last too long above $24k. The king of cryptocurrencies soon lost ground to reach a comfortable support at $1,000 below. Currently, Bitcoin is grappling by the skin of its teeth to the $23k level.

Ethereum was back to its gaining ways after a disappointing period last week. The second crypto in command is up by nearly 2%, enough to keep it above the $1,650 level. Furthermore, it attaches itself to the generally positive trend that most altcoins have followed since the beginning of the year.

Altcoins & DeFi

Almost all altcoins are trading in the red, albeit some are happily heading in the other direction. It is the case of memecoins like Shiba Inu, up by 20%, and Dogecoin, up by over 3%. Elsewhere, BNB increased by 4% this week. Cardano, Polkadot, Polygon, and Litecoin are all up by nearly 2%

Meanwhile, XRP is down by 2%, like Avalanche. Also, Solana, Chainlink, and Monero are all down by over 4% each. One of the best climbers this week is Fantom, with a spectacular 23% value boost.

The Metaverse sector shares the same sentiment as the rest of the crypto market. For instance, Theta Network is down by 1%, Axie Infinity by 8%, and Decentraland by 6%. Meanwhile, ApeCoin decreased by 6% and ICP by almost 7%, just like The Sandbox.

The DeFi sector lost almost $1.5 billion from the total value in locked protocols (TVL), now at nearly $45.63 billion.

Crypto Market Analysis – What’s in the News?

  • Binance partnered with MasterCard to launch a crypto rewards card in Brazil.
  • The authorities hit Silvergate Bank with a fraud probe over the FTX-Alameda relationship.
  • Russia’s SberBank is ready to launch a DeFi Platform in May this year.
  • An Oxford student has been jailed after stealing $2.4 million through a crypto scam.

Next Week’s Crypto Market Forecast

Bitcoin live price
price change

The crypto market contracted slightly this week. Nevertheless, the overall sentiment remains positive, and the red values should soon change course to greener pastures. It’s interesting to see how this month pans out after a pleasantly surprising start to 2023.

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