It’s been a turbulent week for many cryptocurrencies, and Bitcoin is perhaps the most affected by the recent wave of bearish volatility in the decentralised markets.
After a brief rise above the $30,000 mark yesterday following a dip as low as $28,762 on Saturday May 14, it was looking good for Bitcoin by the very nex day when it hit $31.053 on Sunday.
As the working week began, however, the gains were totally erased and what had become viewed as a ‘crypto crash’ took place, with Bitcoin along with many altcoins losing considerable value.
By Monday, Bitcoin was down to $29,282 at 5.00pm on the European session, however by Tuesday it had begun yet another recovery and pushed above the $30,000 mark.
Now, however it is down again and by 7,00am BST this morning, Bitcoin had dropped 1.47% to $29,964.
This week’s up and down movements have represented an overall upward move over the five day moving average, with Bitcoin up 2.51% which is 732 points over the five day period.
In some respects, the market had become a bit stagnant and investors had turned their eyes away from Bitcoin for a few weeks as it hovvered around the £30,000 mark and, unusually, did not move very much at all.
It now seems that volatility is back, and that Bitcoin movements are as interesting as they had been throughout most of the previous six months before the short period of stagnancy took hold.
Currently, in the overall cryptocurrency markets, eyes are on the potential outcome of the Ripple case, with the court date set for today in which the US Securities and Exchange Commission (SEC) and Ripple continue the long, drawn out litigation which Ripple is attempting to bring to an end with an out-of-court settlement.
If Ripple manages to settle this, it would be a milestone moment in which a major financial regulator has had to redact a high profile action against a company, however it may well still be down to the courts to make a ruling.
Ripple dipped in value over the past few days in anticipation of the court hearing which is scheduled for today, as it may not be the end of the case, and if Ripple wins, there are many analysts expecting a surge in value, however the possible outcome is yet unclear.
Other areas of interest this week have included 3 stablecoins which lost their $1 peg against the US dollar, those being Deus Finance’s DEI, the much larger Terra, and perhaps most interestingly of all, the highest capitalised stablecoin in the world, Tether.
All this has done is increase interest in totally decentralised cryptocurrency, which may be partly the reason for Bitcoin’s rejuvenated volatility.
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