This week Bitcoin surged above $48,000 for the first time since May, capping off a solid week for cryptocurrencies.
As equity markets recovered from this week’s earlier drop, Bitcoin’s price rose, and the world’s most valuable cryptocurrency may encounter resistance between $50,000 and $55,000 over the weekend.
Indeed, Bitcoin’s price is trading at $48,871 at the time of publication, up 3.44% in the previous 24 hours and 3.56% in the last week, with a market dominance of 43.7%, according to CoinMarketCap data.
It appears that Bitcoin and crypto buyers, in general, were encouraged by the Coinbase statement on Thursday that it would add more than $500 million in cryptocurrency to its portfolio. Brian Armstrong, the CEO of one of the most recognized crypto exchanges, also stated that “we’ll be investing 10% of all profit going forward in crypto.”
The global crypto market
The worldwide crypto market valuation is now $2.10 trillion, up 3.53% from the previous day. In addition, the overall crypto market volume over the previous 24 hours is $111.90 billion and decreased by 0.69%. DeFi’s total volume is presently $14.29 billion, accounting for 12.77% of the overall crypto market’s 24-hour volume.
Meanwhile, crypto analyst, Michaël van de Poppe has stated that “the total market capitalization is ready for $2.2 trillion as the next resistance.¨
Elsewhere, coins such as Cardano (ADA), the native cryptocurrency that powers the Cardano public blockchain, capped off a great week, overtaking Binance native token (BNB) in terms of overall market value.
Investor mood appears to be impacted by the Alonzo upgrade, which aims to bring smart-contract capabilities to the network and fix one of the network’s most apparent flaws, according to critics.
China’s regulatory crackdowns intensify
On Friday, China’s tech stocks fell to new lows, and Hong Kong’s benchmark index fell to an almost 10-month low, as an onslaught of Chinese regulatory crackdowns shattered investor confidence.
In a week, Hong Kong and mainland China markets have lost more than $560 billion in market value as funds flee once-favored equities, fearful of which industries authorities would target next.
The Hang Seng Index (.HSI) dropped 1.8 percent, with a weekly decline of 5.8 percent, the worst since March 2020, when financial markets were gripped by pandemic panic, according to a Reuters report.
Confidence is eroding among investors
Shanghai stocks also dropped as investors dumped riskier corporate debt and the Chinese yuan. As investors fled to shelter amid worldwide coronavirus fears, the currency was headed for its worst weekly drop in two months.
International investors are fleeing in droves from the tech sector for fear of being unable to quantify regulatory risk. For example, since its IPO in New York in 2014, Alibaba (NYSE: BABA) currently has its lowest price-to-earnings ratio.
According to Tariq Dennison, managing director of GFM Asset Management in Hong Kong, “Alibaba wouldn’t be trading around 20 times earnings if the general mood around them was optimism.”
In contrast, shares of China-based electric vehicle (EV) firms listed in the United States such as NIO, Xpeng, and Li auto all gained ground as scalpers took advantage of recent sell-offs triggered by Beijing’s continuing regulatory crackdown.