Week in Crypto: Bitcoin plummets and drags the entire crypto market
The price of Bitcoin plummeted earlier in the week, but has failed to recover. We tell you what happened in the crypto market!
The last week of February has been a total nightmare for Bitcoin and crypto investors. The price of Bitcoin is plummeting and many fear that there is no one to save it, will institutional crypto investors do it?
TOP Weekly Crypto News
In the crypto market we are used to good weeks and others not so good. However, it can be quite difficult to keep up with all the information flowing to and from the market.
Therefore, today CryptoTrend brings you the crypto summary of the week. What happened?
Bitcoin fails to stay above $ 50,000
According to CoinMarketCap, last Sunday the price of Bitcoin was above $ 58,000. However, the crypto plunged during the first hours of Monday to $ 48,967.
At the time, the crypto community hoped that it was only a slight correction that would end up being healthy for Bitcoin and that, of course, would give it the momentum to reach new highs.
However, as we can see during the last 7 days, that never happened.
Certainly the leading crypto managed to position at some moments of the week above USD 50,000. However, on February 25 it experienced a correction from which it has not been able to recover.
Following the crash, the price of Bitcoin currently sits at $ 43,800, according to data from CoinMarketCap. In fact, it is worth mentioning that this is a 7.5% drop over the last 24 hours.
Looking at the last 7 days, the leading crypto has experienced a correction of almost 23%.
Bitcoin: Where will it break? Above or below?
Hope in institutional investors?
On February 23, we told you from CryptoTrend that, despite the crypto crash of Bitcoin, CrossTower’s research pointed out that institutional investors would keep the price of crypto above USD 50,000.
In fact, the brief rally that the crypto price experienced above $ 50,000 was attributed to MicroStrategy and Square.
Recall that both companies claimed this week to have invested in the leading crypto, specifically Square invested USD 170 million and MicroStrategy approximately USD 1 billion.
However, it appears that it was not enough to keep the crypto price above the key level.
Bitcoin crash drags Grayscale’s crypto fund with it
As we reported yesterday, the share price of the Grayscale Bitcoin Trust (GBTC) plummeted, converting premiums into discounts.
As many will know, historically the Bitcoin crypto trust has been trading at a premium over the underlying asset since 2013. In fact, it is worth mentioning that at the end of 2020 that premium was 40%.
However, the crash in Bitcoin’s price prompted investors to move to sell the shares of the crypto fund. We must bear in mind that the GBTC shares are created, but not destroyed, therefore, an imbalance between supply and demand was created.
And, as many of you will know, when supply exceeds demand, downward pressures are created on prices, and that is precisely what happened.
New opinions and crypto tips on Bitcoin
As happens every week in the crypto market, countless opinions and advice have been issued regarding Bitcoin. Today we will tell you the three most important ones.
First of all we have Bill Gates who assured that if you don’t have Elon Musk’s money, then you shouldn’t be thinking about Bitcoin.
Gates’ opinion is based on the fact that money to spare is what allows crypto investors not to worry about what happens to the price of Bitcoin.
In second place we have the analysts at JPMorgan, who advised their investors not to invest more than 1% of their portfolio in Bitcoin. In this way, analysts believe that there is an adjusted exposure to the risk of Bitcoin.
And last but not least, the Mastercard VP argued that volatility and long wait times prevent Bitcoin from being a payment instrument.
In a few lines …
This week Coinbase took the first big step to go public.
Bordier & Cie SCmA announced the launch of its own cryptocurrency products in partnership with Sygnum Bank.
Crypto exchange PDAX threatens to sue its users after a mistake put Bitcoins for sale on the platform for $ 6,000.
Disclaimer: This press release is for informational purposes information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent the views of infocoin, and should not be attributed to, Infocoin.