The Crypto Weekly Market Update: Polkadot Reached Top 5, Bitcoin Stagnant

Bitcoin had a rather unproductive week of trading as it declined from about $17,750 to where it’s currently at $11,500, losing about 2% in the process.

However, the last seven days were not without their highlights. Just yesterday, the US Federal Reserve’s Chairman, Jerome Powell, announced a historic shift in the institution’s approach towards inflation average targeting, and the markets reacted. Bitcoin shot up from about $11,300 to $11,600, following gold and silver, as well as stocks. The celebration was shortlived as all markets tanked simultaneously, erasing the gains they made.

Today, however, the leading cryptocurrency managed to recover from an intraday low at around $11,150, and it’s currently trading at $11,500.

Elsewhere, another coin made headlines this week. Polkadot’s redenominated DOT token reached the top 5 projects in terms of market capitalization, after surpassing Chainlink a couple of days ago. This, too, didn’t last long as LINK regained its position.

Yet, DOT is performing incredibly well, trading at around $6.30 at the time of this writing and holding a market cap upwards of $5.6 billion, according to CoinGecko.

In another announcement, Fidelity, one of the world’s leading fund managers with over $2.7 trillion of assets under management, announced its first Bitcoin index fund with a minimum investment of $100,000.

The DeFi space continues to boom as the total value locked in protocols is around $7.5 billion. As this segment of the cryptocurrency market continues to expand, though, it’s worth paying serious attention to the risks that come with it and keep in mind that there are millions in ETH already lost to scam coins.

Market Data

Market Cap: $360B | 24H Vol: 84B | BTC Dominance: 59%

BTC: $11,510 (+2.11%) | ETH: $395,67 (+4.10%) | XRP: $0.27(+3.64%)

crypto_overview

High Inflation and Gold Issues Could Send Bitcoin Price to $500,000, The Winklevoss Twins Say. According to the Winklevoss Twins, Bitcoin is positioned to reach a price of $500,000 per coin. This is because of the inherent issues with the US Dollar and gold and Bitcoin’s characteristics, which allow it to serve as a better alternative.

Pump and Dump: Bitcoin, Gold, and Silver React to Historic Fed Inflation Statement. The US Federal Reserve is changing its approach to average inflation targeting, Jerome Powell said in a statement. Immediately after, global markets and Bitcoin reacted by pumping initially and retracing back almost as quickly.

Fidelity Launches Its First Bitcoin Index Fund: $100K Minimum Investment. Fidelity Investment is launching its first Bitcoin index fund. The product is aimed at institutional investors, and the minimum threshold investment is set to $100,000. Fidelity has more than $2.7 trillion in assets under management.

Dark Side of DeFi: Millions USD Worth of ETH Lost to Uniswap Rug Pulls. As the DeFi space continues to boom, so are the attempts to scam people out of their money. Fake coins and exit scams, also known as rug-pulls, are currently plaguing the world’s largest decentralized exchange – Uniswap.

Analysis: The Current Bitcoin Bullish Cycle Could Last Until 2022. Research into the previous bullish and bearish cycles for Bitcoin offers an indication as to how long the current run will last. According to it, the market is in for a bull run until the year 2022, mentioning that Bitcoin has already experienced multiple boom-and-bust cycles in its brief history.

BTC Bandwagon: 2 Canadian Firms are Now ‘Holding Bitcoin as a Reserve Asset.’ More and more traditional companies are jumping on the Bitcoin bandwagon. A while back, MicroStrategy became the first NASDAQ-listed companies to buy BTC as part of its asset allocation strategy. Now, two more Canadian firms are also on board.