Last week, the Bitcoin price rose by more than 9% and the asset itself is now trading at around $40,800. Other cryptocurrencies demonstrated similar dynamics and many altcoins grew by 10% or even more. The general market sentiment was quite positive as several important events contributed to it at once.
One of the big news was the APE token airdrop for holders of the BAYC (Bored Ape Yacht Club), MAYC (Mutant Ape Yacht Club) and BAKC (Bored Ape Kennel Club) NFT collections. The total emission amounted to 1 billion tokens, 15% of which were distributed during the airdrop. Each user received a little more than 10 thousand APE or about $100,000, as the current price of the coin stands at $10. The largest crypto exchanges have already added APE to their platforms including Binance, Coinbase, FTX, KuCoin, and many others.
Another important news was the next Series D investment round conducted by ConsenSys, during which the company raised $450 million at a $7 billion valuation. The money received will be converted to Ethereum. The ConsenSys founder, Joseph Lubin, said that a DAO would be created based on MetaMask. This once again confirms the rumours about the launch of the native token of this wallet. In addition, earlier last week it was reported that the number of MetaMask users had exceeded 30 million.
Also last week, it became known about two more big investment rounds. Initially, the developers of the Layer-2 solution called Optimism raised $150 million. And a few days later, the world’s lightest blockchain project Mina announced the closing of a $92 million investment round.
A less notable event is related to Binance that finally obtained a licence to provide cryptocurrency services in Dubai. Thus, by settling in this region, the company plans to manage its business in the Middle East. Note that the UAE is the third largest market here that follows Turkey and Lebanon. Also, the FTX crypto exchange received the same licence. The company seeks to provide the local institutional investors with operations with derivatives.
Elon Musk paid his attention to cryptocurrencies once again. This time, he warned of a high inflation spreading over the world in general and over the US in particular and recommended investing money in physical assets. In addition, the founder of Tesla stated that he continued to hold Bitcoin, Ethereum, and Dogecoin in his portfolio. After this announcement, the price of DOGE soared by 10%, but the very next day it returned to its previous levels.
Let’s take a look at the Bitcoin chart and try to figure out what to expect from it in the coming week:
Over the week, Bitcoin rose by 9% and reached $42,400. Despite this, the overall structure of the chart remained unchanged. The asset has been trading in a wide range of $36,000 – $45,000 for almost 3 months now. Such a situation may indicate an accumulation phase.
Now, it is quite difficult to say which direction the price will take further. It is necessary to carefully monitor the marked boundaries. If Bitcoin manages to gain a foothold above $45,000, then there will be a huge room to hit $51,000. If the price breaks $36,000 and fixes below this level, Bitcoin may fall to the range of $28,800 – $31,400. At the present moment, given the general market conditions, the second scenario is more likely to take place.
At the same time, it should be noted that some altcoins began to show an upward movement, going ahead of Bitcoin. This may trigger the altcoin season to begin, which has not happened for 4 months. Many cryptocurrencies have already dropped to their local lows and their charts formed reversal formations. Therefore, we expect a technical rebound on the crypto market in the near future.