What happened in the cryptocurrency market during the week of May 17-23

Bitcoin tested the $30,000 mark, and Ethereum traded under $2,000. Altcoins are massively losing money. China is tightening the screws on the crypto market. Read about these and other key events in the BeInCrypto weekly review.

Dynamics of the main cryptocurrencies

The outgoing week turned out to be a bad one for the course bitcoin (BTC). The main cryptocurrency has consistently declined from the opening levels of the week, despite periodic attempts by the market to stabilize. The bulls tried to defend the long-term support in the area of $43,400, then recover above the round mark of $40,600. However, all this turned out to be only a temporary respite.

As a result, on May 19, bitcoin made a bearish break of the descending channel and collapsed to almost $28,000. At the time of writing, the MTC exchange rate was trading, according to the analytical resource CoinMarketCap, around $33,112, with an intra-week decline of almost 33%.

However, this did not break the optimists. So, the head of Galaxy Digital Mike Novogratz still believes that the fall of bitcoin does not change the overall bullish trend and is a convenient opportunity to buy the currency.

Bitcoin chart. Source Coinmarketcap

Meanwhile, the course Ethereum (ETH) broke the recently formed tradition and at the end of the week unexpectedly suffered heavier losses compared to BTC.

Over the past seven days, the coin has broken through two psychological levels of $3,000 and $2,000, sinking into the red zone by almost 50%. At the time of writing, the ETH exchange rate was trading around $1,905.

It is worth noting that a number of on-chain indicators continue to warn about the overheating of the Ethereum market. However, on-chain analysis of other data shows that the ETH community still maintains a positive attitude and continues to move coins.

The Ethereum chart. Source Coinmarketcap

What else happened this week

In general, the outgoing week turned out to be difficult for altcoins, most of the coins bear losses. This also applies to coins that are among the top 10 largest cryptocurrencies by market capitalization.

It is worth noting the coin Cardano (ADA), which at the moment managed to overtake Binance Coin (BNB) and rise to fourth place in the top-10 ranking. The project receives basic support thanks to a number of positive fundamental news. In particular, Cardano is preparing to launch a hard fork Alonzo, which will add the long-awaited support for smart contracts to the ecosystem.

However, this did not help ADA avoid a common market fate. At the time of writing, the coin has already moved to the fifth place in the top 10, showing a drawdown of 50+% in 7 days in the area of $1.11.

Chart ADA. A source Coinmarketcap

Meanwhile, the main loser of the week among the top 10 currencies were Binance Coin (BNB) and Polkadot (DOT), which sank in 7 days at the time of writing by more than 60% each.

The main factor of pressure on the crypto market this week remained China, which suddenly began to tighten the screws in the digital currency segment. First, Chinese regulators announced their intention to ban financial institutions from using cryptocurrency services and digital tokens in financial transactions.

And at the end of the week, Beijing said that it would fight the mining of cryptocurrencies in the country. As the authorities explained, they do this to protect the financial system and reduce carbon emissions.

However, analysts emphasize that behind the latest sales on the crypto market, there are not institutions, but panicked retail traders. This is indirectly confirmed by on-chain data on the influx of bitcoins to the exchanges.

Meanwhile, a well-known American online broker Robinhood he promised to disclose the details of plans for an IPO in the coming week, and the company is expected to go public at the end of June. In this case, it will become the second public crypto company after the high-profile precedent created by Coinbase. Potentially, this news can inspire the crypto space.

What do you think? Share your thoughts with us in the comments and join us to the discussion in our Telegram channel.

Disclaimer


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