Weekly Market Recap and Forecast
It has been an eventful week for the Cryptocurrency industry this past week, Several milestones and achievements were recorded within the week.
From Coinbase going public with its token to massive sell-off in the weekend, the news in this space are quite many but our attention will be on the ones that greatly affect the market.
Coinbase went public with “COIN” which is its a native coin with reports suggesting that Coinbase valuation soared to as high as $86B in value following the public listing of COIN on Nasdaq This of course is a landmark moment for the Cryptocurrency industry since Coinbase is the first Cryptocurrency exchange firm to be listed in the New York stock exchange. This comes with a lot of positives for this space as investor confidence will continue to build in this asset class.
The past week also saw Bitcoin hit a new All-Time High trading above $64,000 in major exchanges across the world, however, these positive changes didn’t last long as the news of a potential investigation from the US Treasury department was imminent on some corporations and individuals bothering on money laundering filtered into the social media… Within 24hrs the entire Cryptocurrency lost over $200B as a result of this unverified news.
Bitcoin, the biggest cryptocurrency by market value dropped from roughly $60,000 to $52,148 in 15 minutes liquidating almost $4 billion worth of positions in the derivatives market, Furthermore, CNBC tweeted CNBC tweeted, while this was an old story, CNBC sent the tweets as new possibly contributing to the sell-off as fears that the partial Cryptocurrency ban in Turkey may likely be spreading to other countries.
As at the time of writing Bitcoin was trading at $54,000 representing a 12% drop on a 24hr basis while Ethereum is down by 13% Other altcoins such as XRP (-15.66%), Polkadot, Litecoin (LTC, -14.81%), bitcoin cash (BCH, -11.78%) have 17% to 20% in the past 24 hours, while dogecoin (DOGE, +15.94%) is nursing a 6% loss.
It’s important to note that Bitcoin rallied above $60,000 in the days leading up to Coinbase’s listing and clocked a record high of $64,801 on April 14. All of these gains were erased within a short while.
However you want to see this, all of these events have further proved the high volatile nature of Cryptocurrency and one must always be cautious when dealing in them, We remain bullish irrespective of the events of the past week. Experts believe this was just a minor shakeup to move out weak hands, the bull season is still on and we believe the momentum will still pick up from here even as news coming as the time of writing has it that China’s Deputy Governor of the Central Bank says that Bitcoin and Digital assets should be used as investment tools or alternative investment.
This is of course very bullish news given the role of China in the global economy, We recommend you buy the dips now as the market rally is coming, we ain’t done yet with the bull season. It is going to be a green week for most major Cryptocurrencies that has witnessed corrections in the past week as the market pushes towards recovery.
Buy the Dip now