(WEEKLY NOTION): A Mixed Week For BTC/USD, ETH/USD, XRP/USD, But What's Ahead? Next Mover: After-Effects of The Biden Plan

BTC/USD (as of Jan 15, 2021, 12.10 p.m., GMT +8)

Source: Yahoo Finance

ETH/USD (as of Jan 15, 2021, 12.20 p.m., GMT +8)

Source: Yahoo Finance

XRP/USD (as of Jan 15, 2021, 12.20 p.m., GMT +8)

Source: Yahoo Finance

At the start of this week, the cryptocurrency market experienced a major selloff, as more than $200 billion was wiped off the market in less than 24 hours. Here's a snapshot of how the week was for BTC/USD, ETH/USD, and XRP/USD. 

BTC/USD

Despite the volatility it is currently experiencing, Jeff Curie from Goldman Sachs believes that BTC/USD is showing signs of maturity. However, for BTC/USD to stabilise, there need to be more funds flowing in from institutional investors. 

John Isige from FX Street believes that the digital gold is gaining a foothold with investors as a store of value, but its present volatility is making it a challenge to forecast the price. 

However, analyst Lorenzo Stroe from FX Street reports that BTC/USD is experiencing a v-shape recovery and the bulls are now aiming to push past $40,000. 

Analyst Jani Ziedins from Investing.com believes that BTC/USD previous poke above $40,000 can be the near-term top for this rally and opines that it could be time to take profits, instead of pressing bets.

ETH/USD

On Thursday, ETH/USD was up 12.58%, which is a remarkable feat and marks its largest one-day percentage gain since Jan 3. It then resulted in an increase of ETH/USD’s market cap to $130.78 billion, or 12.81% of the total cryptocurrency market cap. At its peak, ETH/USD once held a total market cap of $147 billion. 

Stroe believes that the ETH/USD bulls are once again aiming for an all-time high of $1,440, as Ethereum whales continue to accumulate Ethereum. 

XRP/USD

Things are still not looking up for Ripple. The world’s largest digital currency asset manager, Grayscale have announced it will begin to dissolve its Grayscale XRP Trust. Ripple is involved in a lawsuit with the U.S. Securities and Exchange Commission (SEC). Because of the present situation, CoinDesk has reported that Grayscale is predicting a challenge to convert XRP into U.S. Dollars, a challenge that other investors might also face. 

Isige opines that as XRP/USD rejects the 50 Simple Moving Average (SMA) on the four-hour chart, this indicates a bearish signal, and the price could very well dip to $0.29 and even $0.25.

CONCLUSION 

The Chief Executive Officer of MicroStrategy, Michael Saylor, believes that Bitcoin is a better bet than tech stocks. He is not just ‘all talk and no action’, as Microstrategy was the first public-listed company to buy Bitcoin as part of its treasury policy. 

The eventful year of 2020 has indeed increased the spotlight on cryptocurrencies, and as the world economy continues to be grappled by the deadly virus, it can appear that this will give the chance of cryptocurrencies strengthening its position as a store of value. 

In the nearer term, the unveiling of the Biden Plan has increased risk-on sentiment in the market, so the question is how would this effect cryptocurrencies in the near term?

As always, only time will tell but let’s continue keeping an eye here.

FOLLOWME BTC/USD Overall User Sentiment (as of Jan 15, 2021 at 12.23 p.m.)

Short – 63.77%

Long – 26.23%

BTC/USD (as of Jan 15, 2021, 12.10 p.m., GMT +8) - $ 39,450.68

ETH/USD (as of Jan 15, 2021, 12.10 p.m., GMT +8) - $ 1,250.44

XRP/USD (as of Jan 15, 2021, 12.20 p.m., GMT +8) - $ 0.2975