Bitcoin -18% for the week, Ethereum -27% - and this is not the limit
collapsed by 27% over the week, other leading altcoins from the top ten fell in price from 17.1% (Cardano) to 35% (Solana and Polkadot). Total crypto market capitalization sagged 22% to $1.72 trillion last week (according to CoinGecko).
Players continue to exit bitcoin amid falling U.S. stock indices. Trading on Friday ended with another decline in stock indicators. The current January may be the worst for the U.S. stock markets in the last 14 years.
Over the past week, it has declined four days out of five, with the weekly decline exceeding 5% and the highest since October 2020. Earlier, Arcane Research reported that the correlation between bitcoin and the S&P 500 Index reached a record high since October 2020.
Shares of cryptocurrency companies collapse after bitcoin, writes beincrypto. The securities of MicroStrategy (MSTR), the largest bitcoin holder, fell 17% in 24 hours. Since the beginning of the year - by 31%. Shares of Grayscale Bitcoin Trust (GBTC) closed Friday down 13%.
MicroStrategy manipulates reporting on the threshold of zero profit on accumulated BTC, cryptor writes. The U.S. Securities and Exchange Commission (SEC) pulled back MicroStrategy's financial report. The company tried to move away from GAAP accounting standards to lower its accounting cost of 124,391 BTC acquired, which could show a near-zero profit for the year.
Meanwhile, El Salvador bought 410 more bitcoins, taking advantage of the BTC drop. The country now has more than 1,500 bitcoins. BTC officially became legal tender in El Salvador last September.
"The continued negative backdrop in equities sets up a deeper pullback in crypto. Potentially, the crypto market's capitalization could collapse by half, to the $830-$900 billion area, before we see a new wave of long-term buyer inflows. For bitcoin, this suggests the potential for a decline to $20,000," FxPro's analyst team warns.