NEW YORK, N.Y. – The cryptocurrency market’s hopeful start to the week was soon crushed by various events. The Bitcoin retained a critical support line while other tokens were bearish by Friday.
Bitcoin (BTC) hit the all-important 200-days moving average at $9,060 this week. However, it quickly plummeted to $8,400 before consolidating for three days at $8,600. The coin had a bearish start to the weekend by sliding from an intraday high of $8,447.20 to a low of $8,280. It found support in the afternoon at the $8,400 levels, but later slipped down to $8,300.
Experts are blaming Bitcoin’s fall to the Chinese New Year. They claimed that their calculations pegged 10% of residents in Asia have some savings in cryptocurrencies. However, they usually cash it in before the holiday, so they’ll have money for gifts and parties.
It’s been a mixed week for other cryptocurrencies, although most of the major currencies went through a three-day consolidation period. However, the mid-week reversal saw all of them dipping lower.
The Bitcoin Cash SV (BSV), Litecoin (LTC), Monero’s XMR, Ripple’s XRP, and the Lumen (XLM) of Stellar all experienced heavy losses. Some were fortunate to just suffer moderate losses though. The Ethereum (ETH) dropped 3.98%, the EOS went down 3.22% while the Binance Coin slipped down 2.65%.
The crypto market’s total market cap went to a high of $243.39 billion on Wednesday. It was at $234.19 billion on Monday. But the second half of the week’s sell-off saw the cap drop to $226.29 billion on Friday.
The crypto market isn’t showing a clear direction right now. While all the assets are moving as a group, they’re been vulnerable to the week’s different world events. But analysts have pointed out that there were extenuating factors for the bearish mood, namely the coronavirus outbreak from China and the Lunar New Year.
There were also some unexpected and strange news this week. One story that had people scratching their heads was Peter Schiff’s claim that he lost all his tokens because of a corrupted wallet. His claim generated a lot of debate in the crypto community. As it turns out, his tokens were intact. But Schiff apparently inputted the wrong passcode.
There were also discussions about the proposed Central Bank Digital Currencies (CBDCs). Most of the world’s major central banks have been pushing for its implementation. The move will reportedly create a robust competition between cryptos and CBDCs that will result in better service for consumers.
Finally, Ripple CEO Brad Garlinghouse announced the company will likely start their IPO by the end of 2020. The new measure is a bid to save the XRP by bolstering its price.