Cryptocurrency Market Week Review
The cryptocurrency market has been trying to grow this week. Currently, the Bitcoin is traded at $6,700.00 (+9.7%), Ethereum at $140.00 (+10.7%), and the Bitcoin Cash at around $235.00 (+11.9%). The total market capitalization has risen from 165 to 187 billion dollars. Bitcoin’s market share increased from 65.0% to 65.5%.
Experts suggest that the strengthening of digital assets is due to the launch of the US Federal Reserve program of unlimited QE. The saturation of the financial system with a lot of cheap money can help digital assets, since in the future, it will cause a serious increase in inflation, and investors will turn to cryptocurrencies as more stable assets.
Some members of the cryptocurrency community expressed the hope that digital assets would strengthen. So, the head of the Binance exchange, Zhao Changpeng, said that the Fed’s actions could increase the capitalization of Bitcoin to $2 trillion, and Galaxy Digital CEO Michael Novogratz noted a serious increase in the price of gold and said that Bitcoin would follow it.
What could impact this industry?
However, the cryptocurrency sector continues to be affected by a number of constraints. Thus, the scale of the coronavirus pandemic continues to expand and does not allow investors to gain confidence. In addition, the situation around the Telegram TON network is exerting pressure on the market.
During the week, the New York District Court issued a second decision to block the distribution of the Gram token. Thus, the court upheld the requirements of the SEC and recognized the token as a security.
This decision jeopardizes the entire project of the TON network, because if it cannot be launched before April 30, investors will be entitled to demand funds already donated. Telegram representatives have already appealed the court decision but the chances of its satisfaction are few.
Representatives of the TON Lab network developer believe that it is possible to fork and launch the TON network separately from Telegram but this requires the consent of investors, which is in question.
What’s the situation with the other markets?
From other market news, it is worth noting that the Binance exchange announced the release of the Binance Card debit card, which will allow investors to make purchases in BTC and BNB at 46 million retail outlets in 200 countries.
The third-largest by trading volume in Europe – BitBay, experienced a crash and didn’t work for about a day. The administration claims that the problem is related to the failure of a third-party service, and not to a hacker attack, and all client funds are safe.
One of Ripple’s major clients, the money transfer company International Money Express Inc., announced that it will not use blockchain solutions for its key market – Mexico but only in secondary or new directions of transfers. Such a decision may adversely affect the positions of XRP.
Next week, cryptocurrency quotes may continue to moderately grow according to some analysts, however, the potential for the resumption of the decline also remains very serious, since the complex external background for the sector remains.