After a week of correction, the market saw a jump in market cap with Bitcoin’s price recovery, but the weeks ahead will likely put the focus on Bitcoin and its trading range.
Bitcoin had started the week with a stagnant trading range, while traders were uncertain of its short-term movements. Mid-week, it saw a sudden crash, which led to it falling to almost $56,000. After consolidating around that level, by May 3, it was again on the path upward. Next week’s focus could entirely lie on Bitcoin’s price recovery and how it reacts to market events.
The overall crypto market corrected by around 12% this week. Surprisingly, most analysts did not ring the alarm bells, and most said the correction was timely. For instance, the BTC price chart had seen around 60% returns in 2024. The recent dip brought down this year’s returns to approximately 40%. The market could see an uptrend once traders and investors regain confidence in BTC’s trajectory.
An interesting trend also emerged in the crypto market this week. A few crypto observers pointed out that the BTC price chart started rising in January after a week of spot Bitcoin ETF approvals. If this trend repeats, next week may witness a bull run since new crypto ETFs started trading in Hong Kong this week.
Meanwhile, the US crypto sector saw a major development this week. In the state of Arkansas, lawmakers passed two crypto-mining bills for the Governor’s approval. The bills aim to encourage the local crypto sector with several measures and rules. Apart from the stablecoin bill in the making, these US crypto bills could enhance sentiments.
Three other developments worldwide have positively impacted the crypto sector this week. Firstly, Morgan Stanley decided to allow brokers to recommend spot Bitcoin ETFs to customers. This move may help new crypto investors enter the market. Moreover, Deloitte’s research report on the potential of tokenization in finance has also raised eyebrows in the industry.
The report reflected on the increasing support from financial services firms for tokenization. This important use case of blockchain technology could shape the future of the financial services sector.
Payments firm Stripe also moved in the same direction this week while introducing a new crypto payment and conversion feature. Coupled with PayPal’s initiative, this event marks progress in global crypto payments.
During this week, the following tokens registered the biggest returns:
But these tokens were in the red with the highest losses:
As we can observe, the week saw fewer extremes and was relatively neutral. Even though the mid-week decline resulted in losses, altcoins were quick to recover and move past their resistance levels. In the weeks ahead, the crypto market’s performance may be closely linked to the performance of the US economy and spot ETF inflows.
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