Weekly Results: Libra project has influenced the entire cryptocurrency market

How The Week Was For Bitcoin

Last week (the report of the analyzed seven-day period: the 10th July - the 16th July) became the most negative for Bitcoin, since the coin showed its worst weekly results in 2019. BTC traded at $9,477 with a decrease of 25.47% from the price on the 9th July. The market capitalization at the same time amounted to almost $169 billion.

The price of BTC has dropped from the rush around meetings about the financial role of the new Libra cryptocurrency in the US Congress. It is noteworthy that American politicians have never viewed Bitcoin in such a negative context as they do with Libra. According to senators, a cryptocurrency from Facebook can become a destructive element of the monetary system, since the coin will be less volatile.

The 16th July, as Neironix wrote earlier, the head of Libra, David Marcus, tried to explain himself to US senators and bring the main essence of the project from Facebook. However, Marcus’s attempts were not crowned with convincing success, so Bitcoin fell sharply, despite the technical indicators that signaled a rise in value.

At the meeting, Fed Chairman Jerome Powell and Finance Minister Stephen Mnuchin said that Facebook had a lot of work to do before convincing regulators to allow the launch of the project. President Donald Trump also suggested that if Facebook wants to act like a bank, it must also be regulated like a bank.

However, the dominance of Bitcoin this week, despite the low cost of the coin, reached 66%. This figure was the highest in the past year and a half.

How The Week Was For Coins From The Top 10

The ten best projects from the general list of coins showed very negative results against the background of the falling bitcoin trend. The average decline in all coins was -28.05%. This trend demonstrates how the discussions and concerns about Libra have had a strong interaction on the entire cryptocurrency market.

Binance Coin (BNB) and Stellar (XLM) were the most profitable coins among the top ten assets (excluding Tether), although these projects did not avoid a drop of 21.8% and 22.86%, respectively. Bitcoin SV, which lost 45.87% of its previous weekly value, turned out to be the most falling among ten coins.

How The Week Was For The Rest Of The Coins

Top Coins

Five best projects from the list of the top 100 coins by market capitalization achieved positive results. However, the increase compared to the last week analyzed was low: only three projects were able to increase their value by more than 10%, while the other two added only 1%.

These coins from the table, despite the overall downward trend, were able to outperform the market. The low increase once again underlines the inability of the altcoins to compete with bitcoins.

The leader of the analyzed week was the U Network coin (UUU), which grew by 25.27%, the second in the list was the V Systems project (VSYS) and added 14.24%. The top five included Clipper Coin (CCCX), USD Coin (USDC) and Huobi Token (HT), an increase of 12.1%, 0.23% and 0.2%, respectively.

The U Network project (UUU), as mentioned above, this week grew by 25.27% and is in 97th place in the overall ranking of coins with a market capitalization of $ 53 million. The UUU token at the time of writing the material was worth $ 0.0076, since the beginning of May the coin has grown by 50.7%.

U Network (UUU) is a decentralized network for storing, distributing, publishing and evaluating notarial information. The project has updated the roadmap and received new funding from venture funds.

Worst Coins

The list of the worst coins of the week from the top 100 includes the popular project Bitcoin SV (BSV). The coin fell 45.87%. The remaining projects, such as IOST (IOST), aelf (ELF), OmiseGO (OMG) and Ardor (ARDR), completed seven days with losses of more than 40%.

Bitcoin SV is in the top 10 coins, the market capitalization of the project was $1,988 billion, the coin was worth $111.33. But despite the fall in the current price level of BSV is still higher by more than 100% compared to the April low.

Conclusion

The total market capitalization ended the week at about $258 billion, daily BTC volumes in the first few days of the week exceeded $30 billion, and then fell to $20–25 billion.

It is quite possible that the concerns of US government agencies about Libra negatively affected the entire cryptocurrency market, which now faces the strongest political opposition in the entire history of the industry.

This week the mood of investors has changed for the worse. Respondents to a poll from the Cindicator team regarding the movement of Bitcoin prices indicated that they believe in a bearish trend more than bullish. 26.4% of respondents believe that the coin will decline in price. This indicates a very negative mood regarding the dynamics of BTC over the next week.

In general, high volatility among Cindicator forecasters is still observed. This indicator is similar to a sharp change in the price of Bitcoin and suggests that investors are overly sensitive to all market changes.