The crypto market reached significant highs during the week. Last week, the total market cap hit $2.16 trillion while Bitcoin price hit a three-month high of $50,482. The data means that Bitcoin’s trading week has been bullish.
The famed crypto started at $46k but surprisingly rallied past the $50k mark, a 9% gain in just seven days. However, the largest cryptocurrency fell on Friday to $47k, while the total market capitalization fell below one trillion, closing at $888 billion. The volume of trades was $31 billion.
Experts Attribute the Price Decline to China’s Central Bank
Experts assume that the recent price drop of Bitcoin may be due to China’s stance on BTC’s and other altcoins as being illegal. The East Asian country has never supported cryptocurrency since its advent despite having the largest mining pools. The country’s tight crypto regulations have suspended mining activities in several states, with most firms running to America and Europe.
Cryptocurrency illegality in China is strongly backed by the comments of financial experts. They explained that cryptocurrency isn’t backed by any real value. With China’s stance on virtual currencies, it will limit the growth of decentralized finance and an alternative currency in the region and globally. Although the country has agreed to launch digitalized currency (digital Yuan), it states that it’s in no way the same as Bitcoin or other altcoins. The digital coin would be backed by the Chinese government.
BNX, XLM DOWN, Amongst the Top Gainers
In the last seven days, several alternative coins gained in the market. BinaryX (BNX) recorded over 588% gain. Marginswap (MFI) gained over 409%, closing at $1.49, while Avalanche (AVAX) recorded a 25.13% gain. Telcoin (TEL) and Tezoz (XTZ) rose 18.59% and 25.10% respectively, closing at $0.02 and $4.57.
Among the top 10 crypto by market cap, Solana (SOL) and Binance (BNB) were the best performers. SOL rose by 15.49%, while BNB gained over 11%, closing at $82 and $477.
Ryoshi Token, SonoCoin, Among the Top Losers
While the likes of Bitcoin, Ethereum, and BNB recorded massive gains during the week, some cryptos didn’t perform bullishly. Ryoshi Token recorded a tremendous 97% drop. SonoCoin contracted by 78%, while King Swap dropped by 84%.
Other coins like SHIBA INU dropped by 16.25%, while XinFin Network plunged by 17%. Investors are bracing themselves up for the new week. They are confident that the various coins will record gains.