WMA: Bitcoin Drops to $42,000 as the Market Ends 2023 in the Red

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This Week’s Summary

The crypto market ends the week at a total market capitalization of $1,65 trillion.
Bitcoin decreased by 3% to reach around $42,300.
Ethereum is down by almost 1% to trade at a little over $2,200.
XRP gained almost 1% in value this week, reaching around $0.62.
Almost all altcoins are trading in the red, with some notable exceptions.
The DeFi sector decreased the total value of protocols (TVL) to around $52 billion.

Crypto Trends 25 – 31 December 2023: Market Analysis and Performance

The crypto market spent the last week of 2023 dealing with its particularly high volatility. Many assets seesawed around their support levels without making considerable gains. On the bright side, they haven’t lost too much value either. The overall market capitalization decreased by only $30 billion.

Bitcoin has found its comfort zone around the $43,000 level, with minor movements above and below. The king of cryptocurrencies has made a spectacular comeback in late 2023 to make up for a rather disappointing year. With the infamous halving coming up in 2024, we could expect BTC to make waves again in the crypto market and beyond. For now, Bitcoin is trading at around $42,300.

Ethereum is trading more or less at the same value as last week, with its comfort zone at around $2,200. It has been a less-than-impressive year for the second crypto in command. ETH struggled to climb above the $2,000 level for most of 2023. And it was even close to dropping below the daunting $1,000 level a few times. Thanks to the late-year bull run, Ethereum achieved the minimum goal of trading a little above $2k come New Year’s Eve.

Altcoins & DeFi

Most altcoins have been on a rollercoaster ride for most of 2023. Some reached unexpected heights, but most sunk to depressing lows. Hopefully, with the altcoin season underway, many of these alternative coins and tokens will live up to their hype.

The last week of 2023 has seen most altcoins trading in the red. Notable exceptions include XRP, up by 1%; BNB, up by 22%; and Polygon, which increased by 15%.

Elsewhere, Solana is down by 8%, Cardano by 1%, Avalanche by 15%, Dogecoin by 3%, Polkadot by 1%, and Chainlink by 2%.

The Metaverse sector shares the same sentiment as the rest of the crypto market, with most projects trading in the green. For instance, Axie Infinity is up by 20%, The Sandbox by 9%, Decentraland by 2%, and Theta Network by 7%. Notably, ICP increased by 38% while Render dropped by 2%.

The DeFi sector lost almost $0.5 billion from the total value in locked protocols (TVL), now at $52.93 billion.

Crypto Market Analysis – What’s in the News?

The Avalanche Foundation announced it will invest $100 million in memecoins via an NFT Incubator Fund.
MicroStrategy announced the closing of 2023 with a significant Bitcoin purchase worth $615.7 million.

Next Week’s Crypto Market Forecast

The crypto market concludes 2023 and readies for an exciting and promising 2024. It has been a turbulent year for most crypto enthusiasts, witnessing dynamic price changes all around. The unexpected bull run in late 2023 could be a sign of what expects us from January onwards. Hopefully, we are on the brink of one of the crypto market’s best years in history.

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