Cryptocurrency Market Outlook: US Bitcoin ETF Battle Heat Up and Elon Musk Changes the Game
March 26, 2021
Welcome to the weekly cryptocurrency market roundup!
Alright! Looking at the overall crypto market cap for this week, we can see a drop from $2.28T to $2.12T. In simple terms, the market bled out around $160B over the last seven days. So, what could this mean for our favorite coins? Let’s take a look.
Bitcoin Price Drops, Even As ETF Race Heats Up
Over the last week, the Bitcoin price dropped from $59,060 to $53,500, reaching an intra-week low of $52,250. However, despite this price drop, the premier cryptocurrency’s overall narrative has been very positive.
News came out that both Fidelity and Goldman Sachs have submitted their applications for a US Bitcoin ETF to the SEC. Previously, VanEck, Skybridge Capital, among others had submitted their versions. Also, Tesla head Elon Musk made a game-changing announcement by saying the electric car company will now be selling their vehicles for Bitcoin.
As you can see, this announcement had a brief positive impact on Bitcoin price before it dropped down again.
Ethereum’s Price Flounders Around $2,000
Ethereum’s price started the week pretty strong, trending around $2,300 for the first two-three days. However, it has dropped to $2,085, reaching an intra-week low of $1,961.
The Santiment chart below shows the number of Ether held by the top 100 non-exchange addresses. This week, the number has risen from 17.32 million to 17.7 million, indicating that the whales have been continually buying the dip. This can be a positive sign as it shows that the big players are not adding to the selling pressure.
Ripple Price See-Saws Between $0.75 and $0.60
The price of Ripple started the week at $0.592 and has finished it around $0.7014. In the middle, it see-sawed between $0.75 and $0.60. The following chart is from Lunar Crush, which calculates the amount of social chatter surrounding XRP. As you can see, there are some significant spikes in the chart over the last week.
These spikes are coincide with the #RelistXRP movement that was triggered by the latest dramatic turn in the SEC-Ripple saga.
So, what is this “dramatic turn” you ask?
Well, news came out that the US Securities and Exchange Commission(SEC) had unintentionally implied that exchanges listing XRP would not be violating guidelines since Section 4 of the Securities Act states that only Ripple and its affiliates could be accused of illegal sales.
Bitcoin Cash Price Tries To Recover From Sudden Crash
Bitcoin Cash price went down from $674 to $665 between March 20 to March 24. Since then, BCH crashed drastically to $585 over the next 24 hours recovering to $625 to finish the week.
The following chart by Santiment shows the token velocity of Bitcoin Cash. “Velocity” is a term that tells us if a token has been changing hands too much or not. If an asset is valuable, the holder would rather hold on to it instead of getting rid of it. In general, the velocity and price are indirectly related to each other.
As can be seen in the chart, the velocity decreased towards the end as the price went up.
Cardano Price Goes Up in Sync With Development Activity
Over the last week, the Cardano price has been trending in a $0.25-channel between $1.60 and $1.35. It ended the week strong at around $1.54.
One of the main factors that ensured that Cardano ended the week strong was the increased developmental activity (aka GitHub commits). The price for smart contract platforms like Cardano often moves in sync with developmental activity.
During the March Cardano360 event, Cardano released their roadmap wherein they announced that smart contracts will be integrated towards the end of July. This is very bullish news and makes Cardano’s future prospects very promising.
Disclaimer: Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. CoinSmart does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses, and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of CoinSmart nor its advertisers.
