Market picture
Bitcoin fell
6.9% last week to close at $26,900, while Ethereum lost 6.2% to $1800. Top-10
leading altcoins lost between 3.1% (Cardano) and 12.2% (Polygon).
The total capitalisation
of the crypto market fell by 5.5% over the week to $1.13 trillion, according to
CoinMarketCap. One of the main reasons was issues at Binance, where BTC
withdrawals were suspended twice.
Bitcoin
proved interesting for sellers as it touched the 200-week average, passing
close to $26,000 last Friday. By defending this key average, the bulls seem to
have convinced the market of the sustainability of the long-term bullish trend.
On Saturday and Sunday, the Bulls defended the $26.8K level. On Monday,
investors switched to active buying and pushed the price to $27.5K. However,
cautious buyers will likely want to see a $28-28.5K takedown as confirmation of
the break of last month’s downtrend.
The Ethereum
core network experienced two massive outages that prevented transactions from
being completed for some time. Blocks were created, and transactions were
completed but could be altered. The developers of the Ethereum client Prysm
released an emergency update.
News background
CryptoQuant
believes that institutional investors will start buying Bitcoin in late 2023
when the Fed starts to cut interest rates.
MicroStrategy
founder Michael Saylor described Bitcoin as a solution to growing financial
problems and a tool that gives hope to eight billion people to hold their
savings. According to him, BTC is a commodity of necessity and traditional
money in its current form is already “dying”.
The US
Chamber of Commerce issued a brief report on the case of trading platform
Coinbase and the US Securities and Exchange Commission (SEC), criticising the
agency for illegal actions against cryptocurrencies.
The European
Banking Authority (EBA) believes central banks should ban large stablecoins if
they threaten certain countries’ monetary policies.
EU lawmakers
plan to require companies involved in digital asset storage, trading and
investment to report their clients’ balance sheets to tax authorities.
This article was written by FxPro’s
Senior Market Analyst Alex Kuptsikevich.
