Crypto Week at a Glance: Global Crypto Sentiment Changes with Bitcoin’s Rising Value

After last week’s big rally just 0.4% away from the $100,000 milestone, Bitcoin has seen some minor retracements this week, correcting the key support level of $90,000. Immediately after testing the support point, BTC bounced back to the current level of $95,000 and created some momentum for the next phase of the rally. Bitcoin price action aside, this week has brought some refreshing developments that could potentially change the course of the crypto market. From Trump’s aggressive appointment plan to appoint pro-crypto regulatory leaders for nations like China, Brazil, Morocco and Hong Kong, to taking a more bullish stance on digital assets, here’s what happened in crypto over the week.

Trump’s plans for regulators:

News that US President-elect Donald Trump is considering Paul Atkins as the lead pick to head the SEC during the Trump 2.0 administration has buoyed markets. Additionally, reports of former CFTC Chairman Chris Giancarlo, considered the first ‘crypto czar’ to oversee the White House’s crypto policies, have also added to the positivity. With a veteran like Atkins, known for his pro-innovation attitude and crypto expertise, the crypto community is confident that his appointment can usher in a wave of positive reforms that can help achieve Trump’s vision of establishing a strategic bitcoin reserve.

Giancarlo’s role in launching Bitcoin Futures during his CFTC tenure made him a key advocate for responsible crypto adoption. The combination of Atkins and Giancarlo is the best thing the crypto community could ask for – helping bitcoin bounce back in the weeks ahead and leading to faster and healthier adoption of crypto in the coming months.

The start of the much-awaited Altcoin season:

Over the past few weeks, the entire crypto community has been anticipating the next altcoin session and this week the season has begun. The altcoin season index is at 58 indicating strong momentum in altcoins. Moreover, Bitcoin’s dominance falling to 57.1% despite the price increase is another sign of the altcoin season. Proving the same, tokens like Ethereum, Doge, Cardano and XRP have surged as much as 30% in the past week.

Countries that are bullish on crypto:
Another interesting update that shows the changing perception of crypto is that countries that have been anti-crypto for ages have started opening the door to crypto. China legalized crypto last week and Morocco is set to introduce new regulations in crypto after a ban in 2017. Hong Kong, on the other hand, is planning for tax exemptions on crypto gains for private equity funds, hedge funds and high net-worths. Investment vehicles in efforts to take crypto mainstream from the end of the organization.

As Bitcoin nears $100K, Brazil has taken a step forward following Trump’s path to global risk protection of the nation’s financial assets, diversifying reserves and promoting blockchain technology integration in the public and private sectors. These initiatives demonstrate the resilience of crypto against other asset classes and the confidence of nations around the world in crypto.

Mainstream organizations entering the crypto space
This week also saw several mainstream institutions enter the crypto market. SOS Limited, a publicly traded Chinese company with operations in blockchain and cryptocurrency, has announced plans to invest $50 million in Bitcoin. A leading player, MicroStrategy, added 55,000 more bitcoins to its existing 386,700 bitcoins. Rubble, a video platform, is planning to buy $20 million worth of BTC as part of its new treasury strategy. The move also highlights the growing trend of corporate investment in crypto at a higher level, realizing the remaining steam in the market.

Top 5 Crypto Gainers During the Week:

1. Stellar is up 100.33%
2. Sandbox is up 76.4%
3. Celestia is up 70.44%
4. Phantom is up 52.8%
5. Uniswap is up 45.70%

Top 3 Crypto Losers This Week:

1. Bitcoin Cash is down 4.2%
2. Bitcoin is down 3.2%
3. Solana is down 2.43%

(Author Edul Patel is CEO and Co-Founder of Mudrex, a leading crypto trading platform. Views are his own)

(Disclaimer: Recommendations, suggestions, opinions and views given by experts are their own. These do not represent the views of Economic Times)