What happened in the cryptocurrencies market during the week of March 22-28
A newcomer – THETA – broke into the top 10 largest cryptocurrencies by capitalization. ETH stocks on leading trading platforms reached their lowest level in the last 28 months. On Friday, the market experienced a major expiration of bitcoin options. Read about these and other key events in the weekly review.
Major cryptocurrencies dynamics
The passing week was bad for the bitcoin (BTC) exchange rate. The world’s main cryptocurrency fell daily until Friday, eventually sinking to critical support levels and almost reaching an important psychological barrier of $50,000 on March 25.
However, from March 26, the price began to recover. At the time of writing, the VTS exchange rate was trading around $55,848.35, according to CoinMarketCap analytical resource, with an intra-week decline of incomplete 2%. According to the technical analysis, the recovery above the resistance area of $53,600 may be a signal that the growth phase is not interrupted.
Many market participants explain this week’s bitcoin drawdown by the fact that options contracts on bitcoin for a record total of $6+ billion were due on Friday. According to some experts, the decline in the BTC rate in the run-up to this event was the work of options traders, who played down before the contracts were redeemed.
Meanwhile, the Ethereum (ETH) exchange rate also gave out a drawdown for the second week in a row, generally following the dynamics of bitcoin. During this week, it has fallen in price by almost 5%, according to Coinmarketcap. At the time of writing, ETH was trading around $1,698.76.
Meanwhile, overall fundamentals continue to show investors’ continued interest in Ethereum. Thus, it became known that the volume of ETH supply on exchanges reached its lowest level in the last 28 months. The share of ETH on cryptocurrency exchanges dropped below 20%, which was the lowest figure since the beginning of the statistics.
Such dynamics may indirectly point to the growing demand for the cryptocurrency from institutional investors. Recall also that this week Project Staked launched a new trust fund, which should attract institutional investors to Ethereum stacking.
What else was going on this week
This week, on March 23, a newcomer broke into the top 10 in terms of cryptocurrency capitalization – THETA, the native token of the Theta Network platform. It squeezed out Chainlink, as well as Litecoin, and currently holds at number 9 in the top 10 ranking.
Coin has nearly tripled in price over the past month. Meanwhile, according to Coinmarketcap, it was also the intra-week growth leader among the top 10 cryptocurrencies by market capitalization, strengthening by more than 44%. At the time of writing, the koin was trading around $12.41.
Meanwhile, the main loser of the week among the top 10 currencies (at the time of writing) was the Polkadot (DOT) Coin. It ends the week at $32.04, down nearly 13%.
Also this week, well-known electric car maker Tesla added support for bitcoin payments for the U.S. market, and Goldman Sachs decided to launch its own exchange-traded bitcoin fund (ETF). It has already filed the relevant application with the U.S. Securities and Exchange Commission (SEC).
