Bitcoin and Ethereum shot to simultaneous record highs early last week, tapping USD 65K and USD 2.5K respectively, while Litecoin soared above USD 300 for the first time in three years.
Still, the buying party came to an abrupt end when the long-awaited Coinbase listing failed to push prices even higher. Euphoria turned to fear as traders sold the news, prompting Bitcoin to drop 15% before rebounding.
When the dust settled, Bitcoin was down 5% this week. Ethereum fared slightly better with a 5% gain, and NEO managed to avoid the destruction completely by rising 90%.
This week’s highlights
- A dive of 15% leads to record liquidations
- Pro-crypto Gary Gensler becomes SEC chairman
A dive of 15% leads to record liquidations
While Bitcoin entertained the world with a cliff-dive performance on Saturday night, $ 7.6 billion in long positions were wiped out in an hour as high leveraged traders were pulled from the market.
Analysts offered several explanations for the sudden decline. The anti-climactic Coinbase list is one, along with a sudden power outage China’s Xinjiang Region thus shutting down a significant portion of the Bitcoin network. Turkey’s ban on using crypto for payment was also held responsible for the fall, and one baseless rumor that the US Treasury planned to tackle money laundering through digital assets.
Pro-crypto Gary Gensler becomes SEC chairman
As Turkey has tight restrictions on cryptocurrencies and India appears to be following, the US could move in the opposite direction.
On Saturday, pro-crypto regulator Gary Gensler was sworn in as chairman of the Securities and Exchange Commission (SEC), making him the top agent on Wall Street.
Gensler, who previously taught a course called ‘Blockchain and Money’ at MIT, has shown a deep understanding of cryptoassets and is widely expected to take a forward-looking approach to the market. He could even help push the SEC to finally approve a Bitcoin Exchange Traded Fund (ETF).
The coming week
After the sudden downturn, Bitcoin rebounded to trade around $ 57,000 again, growing 10% from its low.
To confirm the continuation of the bull market, traders will look to a recovery to record highs. This would be supported by macroeconomic forces, with US inflation data rising faster than expected in March last week.
On the other hand, failure to continue bouncing could indicate that the sudden downturn has significantly damaged bullish momentum.
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