Cryptocurrency Market Review: Bitcoin and Ether Remain Popular with Investors

At the beginning of this week, the quotes of the largest cryptocurrencies underwent a serious downward correction, but then resumed their growth and won back some of the previously lost positions. BTC is currently trading at 38200.00 (-6.5%), ETH is at 1250.00 (-1.5%), USDT is moving around 0.9984 (-0.2%), and XRP is at 0.2900 ( –8.0%). The DOT token took the fifth place in terms of capitalization, displacing LTC to the sixth position. Now it is trading at 14.2700 (+ 45.6%). The total market capitalization fell to $ 1.04 trillion. The share of Bitcoin in the market fluctuated around 68.7%.

Experts associated the downward correction at the beginning of the week with profit-taking, which traditionally occurs when the price reaches important psychological levels. Experts have been expecting it for a long time, even when BTC reached the levels of 20,000.00 and 30,000.00, but a really large rebound happened only now, when the first cryptocurrency broke through the level of 40,000.00. The sharp decline in BTC quotes pulled altcoins along with it. Nevertheless, most observers expect the overall upward trend in the cryptocurrency market to remain in place, and BTC may soon reach a new high at around 50,000.00, as the positive factors for the market associated with the pandemic and the injection of serious financial resources into the American economy remain.

As for the second cryptocurrency ETH, it also remains popular with investors. After the launch of the zero phase of the Ethereum 2.0 network, large players continued to buy the token, hoping for its growth. In the past two weeks alone, the number of large ETH holders (addresses that store 10,000 coins or more) has grown by 4.2%.

XRP remains an outsider among the top five assets, which is under pressure amid a claim by the Securities and Exchange Commission (SEC) against Ripple. Currently, exchanges Coinbase, Binance.US, OKCoin and have stopped trading XRP. The other day, the head of the Bakkt Bitcoin derivatives trading platform Gavin Michael said that the company plans to start supporting new cryptocurrencies, but XRP will not be among them, since the issuer has problems with the American regulator. Overall, the situation for Ripple is getting worse. Nevertheless, the company still has hope for a change in the leadership of the SEC. Under new President Joe Biden, the regulator should be headed by Gary Gesler, whose position on the lawsuit against Ripple remains unclear. Perhaps under him, the department will soften its position.

This week, a number of negative statements regarding cryptocurrency assets were noted by global financial regulators. Thus, representatives of the UK Financial Conduct Authority said that people who invest in cryptocurrencies risk losing all their investments, since such investments are associated with very high risks. A similar position was expressed by the Financial Markets Authority of New Zealand (FMA). According to officials, digital assets are not regulated and are often used by fraudsters. ECB President Christine Lagarde called BTC a speculative asset and called for its regulation. Fed Chairman Jerome Powell said the US does not currently need to develop a national token, but the regulator should focus on creating a regulatory framework for stablecoins.

Next week, quotes for most cryptocurrencies will begin to consolidate or continue to grow.

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