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In this series, we will provide an overview of what happened over the past week in the crypto market. So without further ado, let’s jump straight into it.
Bitcoin reached a new all-time-high during the previous weekend when it topped out at $61,500 or just under €51,000. It was a very explosive week as the top cryptocurrency added more than 20% in value. Monday was profit taking day as the price of BTC suffered its biggest single day price decline in more than two weeks. Bitcoin has a tendency to sharply correct in a short period of time after a new weekly candle opens. This flushes out overleveraged longs and brings some balance into the market. The sell-off happened at around the same time Asian markets were waking up on Monday morning. Remember that corrections are healthy in a bull market and necessary for adjusting asset prices and providing new buying opportunities at support trading levels.
The intraday chart was very volatile from the early sell-off and from the lower-placed Chicago Mercantile Exchange (CME) futures gap. Although CME’s Bitcoin futures trading products do not deal in actual Bitcoin, but rather only in paper money, they indirectly affect the open market price. Derivative products are simply an instrument for accredited investors to place trades. As the CME exchange is closed during weekends and non-working days, a gap forms between other trading platforms. Therefore, the price of Bitcoin futures can act sometimes as an indicator for price movement and traders should keep an eye on it as a reference.
The rest of the week was a recovery phase for the broader crypto market and BTC was leading the way up. Bulls are back in the game and are slowly pushing the price towards a new test of all-time-high levels. The Bitcoin price doubled this year as institutional investors began buying crypto-assets in greater amounts and central banks around the world are pumping money into global financial markets to stimulate economies.
Ethereum was closely following its big brother BTC in a corrective move in the daily chart on Monday, and mostly hovered at a similar level for the rest of the week. It is slowly getting back to February all-time-high values of almost €1700.
While the crypto market was experiencing a correction, BEST was reaching new all-time-high levels. It seems that there is no stopping for the Bitpanda Ecosystem Token as it smashed its previous high of €0.875 per token and almost reached the €1 mark. BEST rose by 500% this year alone which makes it one of best-performing cryptocurrencies on a global scale.
Chainlink (LINK), which is a tokenized oracle network that provides price and events data collected from on-chain and real-world sources, also had a fantastic week as Grayscale announced a new investment trust linked to this digital asset. Grayscale is a division of the Digital Currency Group and is known for its crypto trusts which can be bought and sold on stock markets, somewhat like exchange traded funds (ETFs). LINK is now one of the new Grayscale trusts which was big news as liquidity of this asset increased and its price spiked 13% intraday.
To summarise, a volatile week is now behind us and most cryptocurrencies are now teasing new all-time-high values. The beginning of the year was exceptional for investments in the cryptocurrencies market as they largely doubled in value and reached a total market cap of EUR 1.43T with BTC’s dominance achieving just under 60%.
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