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WEEKLY CRYPTOCURRENCY MARKET ANALYSIS
CRYPTONAIRE LYWEEK
CRYPTO investment journal
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WEEKLY CRYPTOCURRENCY MARKET ANALYSIS
Hello, crypto traders welcome to this week’s 170th edition of Cryptonaire Weekly. The overall Cryptocurrency Market Cap stands at $1.5 Trillion. We have seen a $1 Billion increase in the Market Cap since the last week. Bitcoin price is currently around $49,900 from $49,025 since last week and has increased by 1.78% and Ether price is now at $1,600 from $1,805 since last week and has decreased by 11.36%. The current market cap for bitcoin is $933 Billion, and for Altcoins, the current market cap is $567 Billion.
Bitcoin topped the $1 trillion market capitalisation on February 19, which is a significant milestone. Another important event was the launch of the Bitcoin ETF in Canada. The assets under management of the Purpose Investment’s ETF hit $421.8 million within two days, indicating strong demand for the product.
Now, the focus will shift to the US Securities and Exchange Commission, which has previously rejected several ETF proposals citing manipulation and lack of liquidity. However, the entry of institutional investors and Bitcoin’s market cap near $1 trillion may force the SEC to take a more favorable view towards a Bitcoin ETF. The launch of an ETF could be the next trigger that may start the next leg of the uptrend.
However, in the short term, crypto markets are currently witnessing profit-booking. Some of the reasons that may have started the correction could be the tweet from Tesla CEO Elon Musk on February 20 that said, the prices of Bitcoin and Ether “do seem high.”
Another reason that may have increased the nervousness of traders was the comment by US Treasury Secretary Janet Yellen who said that Bitcoin was an “extremely inefficient” way to conduct money transactions and it is often used for “illicit finance.”
As the crypto markets tumbled, it could have resulted in margin calls for several traders who were excessively leveraged. The brokers would then have liquidated the positions at market price which may have intensified the fall.
Patience is the key element during market corrections. Traders should avoid the temptation to catch a falling knife. It is better to wait for the markets to signal a bottom before jumping in to buy
