Cryptocurrencies Drop but Remain Positive for the Week

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Created by TradeOr

3rd Party Analysis 28 May 2021

Key Takeaways

  • Bitcoin drops for a second straight day on Friday, down over 5% to a session low of $36,400
  • Crypto market still struggles to recoup the losses accumulated last week

Cryptocurrencies Drop but Remain Positive

The cryptocurrency market on Friday is trading to the downside with Bitcoin dropping to a session low of $36,400, down over 5% to its lowest point today. Still, Bitcoin and the overall cryptocurrency market are on track to seal the week with gains. The wild and volatile trading this week followed a major crypto market meltdown over the weekend which sent the Bitcoin’s price in a free fall to a bottom around $30,000 per coin.

On Friday, major cryptocurrencies are pressured as traders and investors cannot provide enough strength for another leg up after the recent tumultuous events, including a crypto mining ban in Iran, Chinese warning over crypto mining and trading and stricter crypto compliance with the IRS in the US.

Bitcoin hovered near the $40,000 mark throughout the week and made several attempts to break above that threshold. Efforts couldn’t yield any lasting results and, presently, the flagship cryptocurrency is trading near $36,600, down 4.5% on the day. Bitcoin, however, is poised to end the week in the green if it manages to stay above the opening price on Monday, $33,600.

On Wednesday, Bitcoin’s price briefly climbed above $40,000 and reached an intraday high of $40,800. Other digital coins also reached their weekly high the same day. Ether pushed to $2,911 on Wednesday as the overall market cap reached a valuation of nearly $1.8tn. The market value of the crypto space is now hovering right above the $1.6tn, of which Bitcoin holds a 43% share, or roughly $690bn.

Second Day of Losses for Ethereum

Similar to Bitcoin, the Ethereum coin is in its second consecutive day of losses and is currently trading slightly above $2,500, down 6% in the trading session. Ether is lower by over 40% from its peak on May 12 when its price jumped close to $4,400 per coin.

Crypto land this month experienced one of its worst periods in its relatively short history. In the beginning of May, the cryptocurrency market stood at a valuation above $2.2tn. A few days before the months ends, the market has declined 27% month-to-date. Bitcoin’s price is down 35% for that period, while ether’s price is lower by 9%.

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