WMA: Bitcoin Drops to $41,000 as the Market Cools Down

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This Week’s Summary

The crypto market ends the week at a total market capitalization of $1,64 trillion.
Bitcoin decreased by over 3% to reach around $41,500.
Ethereum is down by almost 2.5% to trade at around $2,450.
XRP lost almost 5% in value this week, reaching around $0.55.
Almost all altcoins are trading in the red, with very few exceptions.
The DeFi sector increased the total value of protocols (TVL) to around $57 billion.

Crypto Trends 15 – 21 January 2024: Market Analysis and Performance

The crypto market takes a break from its recent surge and positive events, such as the SEC’s approval of a BTC ETF in the US. Almost all assets are trading in the red. While this trend could seem alarming at first sight, it is primarily a consolidating period for Bitcoin and Co. Meanwhile, the overall market capitalization decreased by almost $50 billion.

Bitcoin is down by more than 3% this week. The king of cryptocurrencies did not manage to maintain the momentum following the approval for a BTC ETF. Instead, it dropped gradually, following a spectacular surge that took BTC close to $50,000. Currently, BTC is trading at a little above $41,000.

Ethereum supporters eagerly await an ETF ETH to be approved by the SEC. However, industry experts believe we are still a few months away from making that hope a reality. This uncertainty is unsuitable for the second crypto in command, down by over 2% this week. At the time of writing, Ethereum was trading at around $2,470.

Altcoins & DeFi

Most altcoins are reverting to their December 2023 values, with very few trading in the green. For instance, XRP is down by nearly 5%, Solana by 9%, Cardano by 6%, Avalanche by 12%, TRON by 3%, and Polkadot by 10%.

Only a handful of altcoins are trading in the green. Notable examples include Dogecoin, which is up by 6%, and Chainlink, which is up by 2%.

The Metaverse sector shares the same sentiment as the rest of the crypto market, with most projects trading in the red. For instance, ICP is down by 15%, Stacks by 12%, and Decentraland by 11%. Meanwhile, Axie Infinity is down by 11%, The Sandbox by 3%, and Theta Network by 13%. Only Render has increased its value by nearly 3%.

The DeFi sector added almost $1.3 billion to the total value of locked protocols (TVL), now at $57.74 billion.

Crypto Market Analysis – What’s in the News?

The EU has tightened crypto regulations, especially transactions, citing anti-money-laundering protection for users.
A recent survey showed Bitcoin had only a 12% usage rate in 2023 in El Salvador, one of the only two countries using BTC as legal tender besides the Central African Republic.

Next Week’s Crypto Market Forecast

The crypto market is reducing its pace, albeit without incurring significant losses. The long-awaited bull run is delayed, and most crypto enthusiasts hope it’s just around the corner. As 2024 rolls out, we can expect this kind of ups and downs to repeat. Hopefully, the trend will change starting next week.

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