Cryptocurrency market is going through a much needed consolidation phase. To sum up the week — we saw Bitcoin price hitting all time highs three times, inevitably reaching much anticipated $5000 mark. But due to the massive $13 billion sell off yesterday, the entire cryptocurrency market cap has come down to $163 billion from $179 billion.
Bitcoin seems to have found a new support level at $4500. Over the weekend prices kept hovering in the range of $4500 to $4600. It’d be interesting to see how market reacts to the start of the week. There is a good chance we will see many of the top 50 cryptocurrencies that lost value over the weekend, try to catch up during the week.
As for Bitcoin, it’s likely that reaching $5000 once again could take some time. In the coming week or two the challenge for Bitcoin would be on to hold its position and keep finding support above $4500. Otherwise, we could witness another steep correction and Bitcoin price plunging to as low as $2800 — making Goldman Sachs prediction a reality.
Top Stories from the Crypto World
1. Russia’s interest in Bitcoin up 220%
Recent Google data from cryptocurrency-related search queries of Russian residents for the first half of this year shows that interest in Bitcoin is up 220%, Mining 560% and Ethereum 760%
A good thing to know: Last week Russia opened its first criminal case involving Bitcoin. According to a report by Vedomosti business daily, Russian police arrested three businessmen for illegally trading in 500 million rubles worth of bitcoin, or around $9 million worth of the crypto-currency. This makes the stance of Russian government very clear: they want to show that cryptocurrencies will not be tolerated as a money laundering unit, on one hand, while on the other hand want to show they are rolling out the welcome mat for bitcoin and similar technologies.
2. Ukraine to take a final call on legal status of cryptocurrencies
The Ukrainian Cabinet of Ministers have reached an agreement to decide whether or not to legalize cryptocurrencies. The decision is to be announced in three weeks time.
The Cabinet of Ministers is considered as the highest body of state executive authority in the country. It is under the control of the Ukrainian parliament called the Verkhovna Rada.
3. A Bloomberg columnist warns that Bitcoin is a bubble threatening the larger economy
Matthew Lynn, a Bloomberg columnist, warned in Moneyweek that Bitcoin’s rapid price rise makes it a bubble that could have ramifications for the entire economy.
Lynn went on to say that it makes sense that bitcoin’s price should rise as it establishes itself as a mainstream currency, but he has issues with the amount of the rise: 800% in a year, a quadrupling in just over six months and an 87% gain in a month.