After dipping to record lows over last weekend, the two largest cryptocurrencies by market cap, Bitcoin and Ethereum began the week by reclaiming their respective psychological important levels of $20,000 and $1000, respectively.
Buyers stepped in to buy the weekend dips, and arrest any further declines, taking the crypto to highs of over $21,000. However, any misconceptions people had about the markets hitting their bottoms were kicked out of the door by Wednesday when the crypto resumed its familiar slump toward $20,000 amidst strong seller action.
The crypto wasn’t done playing games, though. In a fitting end to a topsy-turvy week, after slipping under $20,000 once again on Thursday, Bitcoin seems to have bounced back yet again. It is currently trading at over $21,200 as we head into the weekend.
While Bitcoin posted a gain of 4% over the last seven days, its recovery was dwarfed by that of several popular altcoins.
Polygon’s MATIC was the leading coin in the list of top 20 cryptos, gaining a whopping 58% over the week, mostly on news of its development team launching a new product for allowing more private voting in decentralized autonomous organizations (DAOs).
Solana is up a whopping 37.5% in the past seven days, which is strange considering the events at Solend earlier in the week. Solana was followed by Avalanche at 25.8%, Litecoin at 24.6%, and XRP at 16.7%. Ethereum and PolkaDot both clocked in returns of 15% over the week, while BNB gained almost 14%.
In fact, apart from Bitcoin, Cardano with 5.7% was the only top 10 crypto that’s not a stablecoin, to register a single-digit gain. Even the two largest memecoins, Dogecoin and Shiba Inu, are up 21.9% and 36.3%, respectively.
This price action comes on the back of many investors calling for a market bottom, although the sentiment remains largely depressed across the board. The crypto Fear and Greed Index has jumped a few notches, and now clocks in at 11, which despite the increase from last week, still puts it firmly in the “Extreme Fear” territory.
Many analysts believe that investors were premature in buying the latest dip because the wider economic conditions haven’t really shown any signs of improvement. No surprise then that many are looking at this weekend as another testing period for the cryptos.