WMA: Bitcoin Tests $38,000 Level as the Crypto Market Recovers Slightly

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This Week’s Summary

  • The Crypto Market ends the week at a total market capitalization of $1,723 trillion.
  • Bitcoin is up by almost 8% and trading at around $38,000.
  • Ethereum gained over 7% in value this week.
  • XRP is up by a little over 1% after a so-and-so week.
  • Most altcoins are trading in the green after a week of intense volatility
  • The DeFi sector lost over $13 billion to the Total Value Locked in protocols, which now stands at $79.82 billion.

Crypto Trends 24th – 30th of January 2022: Market Analysis and Performance

The crypto market is still under complete bear domination. However, things do not look as dark as some pessimist analysts would want you to believe. While the last week of January showed intense volatility, most assets recovered to trade in the green over the weekend. Even the market capitalization regained almost $100 billion in value.

At the time of writing, Bitcoin is trading healthily in the green and boasting a nearly 8% increase. However, throughout the week, the king coin suffered terribly. At one point, it dropped as low as $33,000, creating a FUD effect that rippled through the market.

News about economic recession, FED regulations, and a potential Russian military invasion in Ukraine did not help the crypto market. Furthermore, almost all the financial markets took a dive in this bleak environment of depressing predictions.

Nevertheless, a slightly optimistic boost came from where you would least expect it, Vladimir Putin. While Russia’s central bank announced stricter bans on cryptocurrencies, the Russian President said Bitcoin mining could be advantageous for his country. This opens the door to a potential Bitcoin regulation rather than its complete ban in Russia.

The wave of optimism helped Ethereum recover some of its losses as well. The second crypto in command was desperately trying to remain above $2,000 last Sunday. Today, ETH is trading at around $2,600 after a positive turn of events.

Altcoins & DeFi

Ripple’s XRP had an uneventful week with a similarly unremarkable price oscillation. After a meager 1% value boost, XRP continues to trade at around $0,60.

Elsewhere, most altcoins are trading in the green. For example, Dogecoin, Polkadot, and Polygon rejoice over a 2% value increase. On the other hand, Avalanche and Chainlink surged by nearly 13% and 12%, respectively.

However, not all assets are closing the week on an uptrend. For instance, Cardano is down by over 2%, and Solana lost almost 2% of its value over the week. Meanwhile, Terra’s LUNA is drowning in the red after a 25% value drop.

The Metaverse sector is also showing signs of recovery. More precisely, Decentraland is up by 20%, The Sandbox increased by nearly 27%, and Axie Infinity is up by 5%.

The DeFi sector lost over $13 billion to the total value protocols (TVL), which now stands at nearly $79.82 billion. Furthermore, the TVL dropped down to $64 billion mid-week. However, it recovered over the weekend to reduce the losses.

Crypto Market Analysis – What’s in the News?

  • Senator Wendy Rogers proposed a bill to make Bitcoin legal tender in Arizona.
  • World-famous rapper Drake revealed he owns Bitcoin.
  • Cryptocurrencies are helping Afghan women in the Taliban regime.

Next Week’s Market Forecast

Bitcoin live price
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The bears keep a heavy paw over the crypto market. Nevertheless, the industry has seen several of these dips over the past decade. Therefore, the apocalyptic predictions of a “crypto winter” or “extinction” do not scare even newbie investors. Times are tough right now. But the market should recover soon, and the recent uptrend is a sign of better times ahead.

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