The crypto lending platform Nexo has been ordered by several California securities regulators to halt its crypto yield product. The state claims that the company’s interest-bearing accounts qualify as unregistered securities that require proper disclosures and legal protections. The enforcement action was announced by the California Department of Financial Protection and Innovation (DFPI) on Monday. The Department said its action was part of a larger investigation of companies offering crypto interest accounts.” “The DFPI has undertaken aggressive enforcement efforts against…
Get the weekly summary of cryptocurrency market trends, news, and forecasts!
This Week’s Summary
- The Crypto Market ends the week at a total market capitalization of $264 billion.
- Bitcoin resurges after pre-halving scare drop and nears $10,000 level again.
- The Bitcoin halving took place on the 11th of May at block 630,000
- Ethereum price rebounds and surpasses the $200 threshold again.
- XRP price recovers after a 7% drop last week to go over the $0.20 barrier
Crypto Trends 11th – 17th of May 2020: PERFORMANCE & ANALYSIS
Last week saw the third halving in Bitcoin history. The much-awaited event took place on May 11th, 2020, at around 4 pm EST and block 630,000. The block reward for miners dropped from 12.5 BTC to 6.5 BTC, but the network didn’t experience a severe impact as some of the industry’s pessimistic voices hoped.
Bitcoin started the week with a massive hangover after losing almost 20% of its value last Sunday. The fear of a disastrous halving enabled the bears to take over, but only for a little while. Starting with Tuesday, BTC has been consistently ascending trajectory and reaching as high as $9,750 on Friday.
At the time of this writing, Bitcoin is trading at $9,698, and it is aiming to overcome the $10,000 barrier before May ends. The next resistance level is at $9,815, while the nearest support level is at $8,800.
The recent halving increased Bitcoin’s superiority over the rest of the altcoins, with BTC claiming now more than 64% of the market.
Most of the altcoins suffered at the beginning of the week but steadily improved as the days passed. A clear example of their recovery is Ethereum, which started the 7-day trading period at $185, and it is now trading at $204. The next resistance level is at $211, while the nearest support level is at $187.
Ripple’s XRP was one of the altcoins that were most affected by the Bitcoin drop last Sunday. It’s two months-long battle to go over the $0.20 barrier suffered a setback as it lowered the price by 7% to around $0.19 on Monday. In the meantime, XRP took advantage of the general uptrend in the market and recovered to trade now at $0.202.
What’s in the News?
- The Chicago Mercantile Exchange said that Bitcoin futures saw a record surge in trading this year.
- JP Morgan officially accepted Coinbase and Gemini as their banking clients.
- COVID-19 is currently nearing 5 million cases worldwide
- “Rich Dad, Poor Dad” author Robert Kiyosaki believes that Bitcoin will reach $75k value in 3 years.
- Telegram drops the TON cryptocurrency project after the US prohibits global distribution.
- Vietnam’s Ministry of Finance sets up a research group to look into cryptocurrency adoption.
Next Week’s Market Forecast
In the upcoming week, all eyes will be on Bitcoin’s evolution. The investors’ hopes in a spectacular price surge are high, and based on BTC’s two previous halvings.
In the past, both events sparked a renewed interest in cryptocurrency and brought more capital on the market. Everyone is hoping that Bitcoin will finally overcome its bouncing trend between $8,500 and $10,000, dating back to June 2019.
Overcoming the $10,000 barrier and staying above it should also have a positive psychological impact on market sentiment. It should also strengthen overall trust in cryptocurrency and push the ensuing altcoins to recover from year-long volatility.