A week does not go by in the world of cryptocurrency without some kind of drama. Examining the events of the past week and observing the trends of the crypto market, our weekly Market Wrap-up aims to keep you informed of the latest happenings in crypto, even if you’re not the type to peek at your Blockfolio on an hourly basis.
In a week dominated by tumultuous crashes, bad news, and suspicions of market manipulation, traders might be trying to catch a breath as the weekend approaches.
Bitcoin experienced a dramatic fall, descending by around 7% in a matter of minutes after an announcement regarding Goldman Sachs was released, indicating that the market giant would be delaying the creation of a much-anticipated Bitcoin trading desk. This was later debunked by Goldman Sachs CFO, Martin Chavez, but the market remained negative despite this clarification. Suspiciously, a short time before the initial announcement arrived to be consumed by the public, a massive short of 10,000 Bitcoin, valued at $74 million was placed. Cries of manipulation resonated across cryptocurrency websites and forums. Still, it seems more likely that traders were simply selling off profits, which then precipitated more selling, which led to others joining in the panic upon hearing of the negative news.
Many other cryptocurrencies were even more damaged by market negativity, with Ethereum notably falling 15% in a short time span. NANO, a currency that just weeks ago was surging on positive news, is coming back down to earth with a 7 day drop in value of around 22%. The market as a whole joined in the fall, descending from $240 billion to the current $204 billion. Bitcoin itself continues to build dominance, reaching nearly 55% of the market’s valuation.
Few coins escaped the overall bearish attitude. Dogecoin calmed down considerably after experiencing a huge pump, resulting from excitement building around the ability to swap Dogecoin for a token on the Ethereum blockchain, dubbed a DogeToken (not to be confused with the intentionally misleading “Dogethereum” coin that is little more than a cash grab) via a Doge-ETH “bridge”. Still, the coin has remained somewhat volatile, yet relatively buoyant when compared to much of the rest of the market. It remains up nearly 25% on the week. Holo (HOT), a non-blockchain currency that instead uses Distributed Hash table technology, stands out as a coin that bucked market trends this week, gaining an astounding 75% over the past 7 days of trading activity with $30 million in daily trading value at the time of this writing.
Due to numerous bearish CNBC tweets of the past couple days and their amazing record for calling market conditions resulting in the exact opposite movement occurring, the contrarian in me senses an impending recovery. This, however, is purely intuition and is certainly not something on which any reader should base any kind of trading decision.
It should be noted that all of these observations are just that — observations I have made about the market over the past week. This is not professional financial advice and is intended only to act as a quick wrap-up of the week’s events for you to enjoy. Please do your own research before doing any investing and never risk more than you can afford to lose.