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Weekly Crypto Market Recap #5

By RAIN EDITORIAL TEAM - May 03, 7:00 PM

Last week, investors seemed to have mixed opinions about where crypto prices will head, and this indecisiveness left a mark on the market’s performance. Despite the almost expected dip amid uncertain economic times, there are assets that closed a really positive seven days—we’ll explain all you need to know in today’s crypto recap.

General Market Performance

In general, prices experienced a minor dip mostly due to the underperformance of some top altcoins like XRP (XRP), or Cardano (ADA), which dropped 6% each during the past seven days. Bitcoin (BTC), on the other hand, stayed relatively flat throughout the downtrend of altcoins, which suggests strong investor trust in the biggest cryptocurrency by market cap. Tron (TRX) was among the best performers of last week, closing the period with an almost 17% gain thanks to its involvement with the highly anticipated USDD (Decentralized USD) stablecoin launch. 

Down terms like this are healthy parts of the market, and with the warm seasons arriving to many parts of the world, selling by this time has been an almost historical trend of the entire market. With that said, the lower prices might be the perfect chance to get in at a more optimal rate for many.

Bitcoin (BTC) surges after U.S. FED announcement

Bitcoin (BTC) bounced from its relatively flat week right at the end after FED Chair Jerome Powell had announced that the historic rate hike will come to an end. This was what likely fueled investors’ support for the biggest cryptocurrency by market cap. Many assume an inverse relationship between Bitcoin’s price and the FED’s interest rates, as historically, the higher the inflation, the better BTC performed, and the lower the FED kept inflation with its rate hikes, the worse Bitcoin did.

Algorand partners with global football organization FIFA 

Algorand was chosen by FIFA as its official blockchain partner for its 2022 Qatar Football World Cup and for Women’s World Cup the following year. The deal means that Algorand will provide all the necessary digital infrastructure for the North American and European region alike, while potentially gaining media and other types of exposure during the games held in November this year.

The Football World Cup is among the most watched events worldwide, which could prove to be an excellent opportunity for Algorand to bring the crypto world one step closer to the masses. Nonetheless, ALGO tokens surged after the announcement, but eventually cooled off, and closed the week with 2% in the green.

Regulators are amplifying their crypto focus–and that’s great

The U.S. SEC and the EU Commission both seemed to express their raised interest in placing crypto regulation talks in the spotlight last week. The SEC almost doubled its current crypto department, which could be a sign that the regulating body plans on investing more resources into properly understanding and framing crypto assets and markets.

On the other side, the EU Commission’s Financial Stability and Integrity report published last week highlights the fact that the official organization has actually developed a fairly deep understanding of what Decentralized Finance (DeFi) is and the features it offers, as well as how the commission has a positive outlook about DeFi. In the report’s words, “compared to the traditional financial system, DeFi claims to increase the security, efficiency, transparency, accessibility, openness and interoperability of financial services.” 

Bitcoin (BTC) becomes legal tender in Central African Republic

The Central African Republic (CAR) became the second-ever country to adopt Bitcoin (BTC) as legal tender. The announcement came after the state’s parliament passed a bill that would enact BTC into its new role to help battle inflation and domestic exchange rate difficulties. As CAR’s President Faustin-Archange Touadera said earlier last week, “the adoption of bitcoin as an official currency represents a decisive step towards opening up new opportunities”. 

Even though last week was not the best in terms of price performances, it definitely created some potential buying opportunities that offer better rates than before. As it will be only a matter of time until the market moves again, it might be time to think about whether this is the right point to get in, or not.

Rain is licensed by the Central Bank of Bahrain as a Category 3 Crypto-Asset Services Provider. We are headquartered in the Kingdom of Bahrain

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