Halving Festival is Over – Bitcoin Concludes a Volatile Week With Rising Dominance: The Crypto Weekly Report

Bitcoin’s halving finally took place at block 630,000 on May 11th, 2020. Like many cryptocurrency enthusiasts and market participants pointed out, the block countdown felt much as if it’s New Year’s Eve. However, it’s already behind our backs, and the price has managed to add another $1,000 to it since then.

In the four short days since the halving, Bitcoin increased from $8,550 to where it currently trades at around $9,380. This marks an increase of about 11%. As a matter of fact, BTC tested $10,000, but the price has since retraced as it failed to conquer that level once again.

While Bitcoin is currently trading in the range between $9,300 and $9,800, altcoins are suffering heavily. The dominance of the primary cryptocurrency has increased to 67.4%, leaving many alternative cryptocurrencies to suffer as a result. Some, such as Ripple’s XRP are even trading at a multi-year low against Bitcoin as the last time XRP was this low was in December 2017.

The effects of the halving can be seen already. The revenue of Bitcoin miners already dropped by more than half. The hash rate also experienced a serious decrease as it dropped down more than 32%. Many are anticipated a serious negative difficulty correction to offset the decreasing hash rate.

It’s worth noting, however, that there were many important developments in the field throughout the past seven days. JP Morgan officially accepted Coinbase and Gemini as their banking clients. In Asia, Vietnam’s Ministry of Finance set up a research team to propose different policies to regulate the ongoing development of virtual assets.

In general, it has been a relatively volatile week, which was somewhat expected as the halving took place. Yet, it remains interesting to see if altcoins will be able to regain some of their strength and transition into an altcoin season or if Bitcoin will continue increasing its dominance.

Market Data

Market Cap: $255B | 24H Vol: $148B | BTC Dominance: 67.4%

BTC: $9,375 (-2.87%) | ETH: $195,34 (-3.50%) | XRP: $0.199 (-0.03%)

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Bitcoin is a Gateway Drug to Altcoins, According to Coinbase. According to a recent research by Coinbase, Bitcoin buyers tend to experiment with altcoins. As such, users who bought Bitcoin first were shown to be more likely to spread out into the altcoin market as well.

Telegram Officially Drops TON As Vicious Circle Comes to Its End. The company behind the popular encrypted messaging app Telegram announced that it will be ceasing all active involvement with the TON blockchain. This came after a prolonged battle with the US Securities and Exchange Commission that sought to halt it as an unregistered securities sale.

Analysis: HODLing Bitcoin Has Been Profitable in 93.6% Of The Days Since August 2010. The increase in Bitcoin’s price after the halving took place also meant that the number of days the cryptocurrency has been profitable surged. According to an analysis, BTC has been in the green in 3329 out of 3558 days since August 2010.

Vietnam’s Ministry of Finance Sets Up Research Team On Cryptocurrencies. Vietnam’s Ministry of Finance is stepping up its efforts to regulate cryptocurrencies. A recent report made it clear that they are setting up a special group of researchers to study and propose different policies to manage the ongoing development of virtual assets.

JPMorgan Reportedly Accepts Coinbase and Gemini As Banking Clients. The powerful multinational investment bank JP Morgan has officially taken two of the most popular cryptocurrency exchanges – Coinbase and Gemini, as its banking clients. They were approved in April, and transactions will be processed as of now.

Reddit Testing Ethereum-Based Tokens For Fortnite And Cryptocurrency Subreddits. The popular social media platform Reddit has started to test two types of Community Points, both of which run on Ethereum’s blockchain and are structured as ERC-20 tokens. In a detailed presentation, the website informed its users what their purpose would be. They are currently going through the beta testing period.