Crypto week at a glance: Crypto correction after El Salvador’s Bitcoin adoption

Crypto week at a glance: Crypto correction after El Salvador's Bitcoin adoption
Written by bobby

Crypto week at a glance: Crypto correction after El Salvador’s Bitcoin adoption: It has been one of the most volatile weeks for the cryptocurrency market in months. Markets began the week on a positive note, with Bitcoin first crossing the $50,000 mark and then $51,000 and then $52,000. The overall market capitalization had shot past $2.3 trillion.

However, the market took a drastic U-turn on Tuesday as Bitcoin dropped from near $53,000 levels to around $43,000. In one of the largest liquidation events in months, 328,000+ traders were liquidated. The total value of liquidations surpassed a whopping $3.54 billion.

The crash coincided with El Salvador’s implementation of Bitcoin as legal tender. Before the crash, several Redditors initiated a campaign to buy $30 worth of Bitcoin to show their support to El Salvador. President of El Salvador president Nayib Bukele tweeted that the country added 550 Bitcoins to its treasury.

After the crash, the crypto heavyweights recovered briefly. Thereafter, it was a pretty flat week for Bitcoin and Ether. The third-largest crypto by market capitalization, Cardano, which had a fantastic rally during the beginning of the month, remained under the grip of bears this past week.

However, it was not all gloomy for the investors. Solana, the closest competitor to Ethereum, has been a hot favorite of several investors lately. A fantastic rally propelled it to the spot of the sixth largest cryptocurrency in terms of market capitalization.

Another interesting crypto project that did spectacularly well was Algorand. Its native token, ALGO, managed to grab eyeballs and rose to the seventeenth position. ALGO did not tank hard even during some of the severe market crashes over the past three months. The total crypto market cap stood at around $2.07 trillion as of September 11, 2021.

The US Securities and Exchange Commission appears to have locked horns with cryptocurrency exchanges lately. The US Securities and Exchange Commission (SEC) has threatened to sue Coinbase if the crypto exchange goes ahead with its plans to launch a program allowing users to earn interest by lending crypto assets.

The SEC is also investigating the crypto exchange developer Uniswap Labs, the lead developer behind one of the world’s largest cryptocurrency exchanges, Uniswap, the Wall Street Journal reported on Friday, citing people familiar with the matter.

Among the top 10 cryptocurrencies, the best performer for the week has been Solana. All other coins among the top 10 ended the week in the red. The worst performer among the top 10 this past week was the meme-coin, Dogecoin.

Reports suggest that institutional investors have continued to ramp up their Bitcoin holdings. Asset managers accumulated more than 4% of Bitcoin’s total supply, while both private and public companies, both hold more than 1% of it.

Additionally, Investment bank Morgan Stanley bought shares worth $240 million of Grayscale Bitcoin Trust (GBTC). Investors are still hopeful of the SEC approving multiple Bitcoin ETFs in October.

Top 5 crypto gainers during the week:

Algoran (ALGO) 71%

Quant, (QNT): 60%

Elrond (EGLD): 50%

Harmony (ONE): 47%

NEAR Protocol (NEAR): 46%

Top 5 crypto losers this week:

eCash (XEC): 31%

Revain (REV): 27%

Internet Computer (ICP): 26%

Polygon (MATIC): 25%

Telcoin (TEL):23%

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