Bitcoin edges lower for its worst weekly performance in over a month as as cryptocurrencies struggle to recover from heavy sell-off

Representations of virtual currency bitcoin are placed on US dollar banknotes taken May 26, 2020.
Representations of virtual currency bitcoin are placed on US dollar banknotes taken May 26, 2020.

Bitcoin slipped Friday to clock worst weekly performance in more than a month as the world’s largest cryptocurrency by market cap inches closer to a key support level of $30,000.

Bitcoin on Friday morning was trading at $31,363 as of 8:30 a.m. ET, according to data from CoinMarketCap.

An eventual break below this level will be crucial, Julius de Kempenaer, senior technical analyst at StockCharts.com, told Insider.

“If and when this happens, $20,000 is on the cards as the next level of support to watch,” said.

The selling pressures began on Thursday when the digital asset suffered its biggest drop in about 10 days. Bitcoin in the past month has been trading in a range at just around half its April peak price of nearly $65,000.

Alongside bitcoin, other cryptocurrencies have slid in the last 24 hours:

Cryptocurrencies have struggled to rebound from a massive crash in May when the value of the total market dropped by nearly half in just seven days.

A number of headwinds have been blowing against the crypto market since the brutal sell-off.

Federal Reserve Chair Jerome Powell on Thursday told the Senate Banking Committee that cryptocurrencies have failed to become a viable payment method. A day earlier, he also said the US won’t need stablecoins and cryptocurrencies if the central bank were to issue its own digital currency.

There have also been problems plaguing the the world’s largest cryptocurrency exchange, Binance, which is weathering an intensifying regulatory crackdown. Italy most recently joined a growing list of nations to issue a warning against the exchange, saying it is not authorized to do business in the country.

Bitcoin is also under increasing fire for its impact on the environment from critics who points to the heavy energy consumption of bitcoin mining.

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Altcoins associated with a 29-year-old self-made cryptocurrency billionaire are surging in popularity

solana chart
Solana cryptocurrency chart.

Altcoins associated with crypto whiz Sam Bankman-Fried, the head Alameda Research and the FTX derivatives exchange, are surging in popularity, according to data from CoinMarketCap.com.

Bankman-Fried’s Solana has jumped over 35% in the past week moving it to the 14th spot in CoinMarketCap’s list of the top cryptocurrencies worldwide. The altcoin now has a market cap of over $12.4 billion.

Serum, a cryptocurrency used by Bankman-Fried’s decentralized derivatives exchange is also up more than 40% in the past week, hitting a market cap of $468 million.

Finally, the price for FTX coin, which is used on Bankman-Fried’s FTX derivatives exchange, has jumped over 40% in the past month to hit a $4.9 billion market cap.

Bankman-Fried started Alameda Research in 2017 after a three-year stint at the quantitative-trading firm Jane Street Capital. Since then he has established himself as a top trader in the crypto space.

In a recent appearance on Bloomberg’s “Odd Lots” podcast, Bankman-Fried told Tracy Alloway and Joe Weisenthal that he used Bitcoin arbitrage opportunities in Korea (known as the kimchi premium) to net returns of 10% a day from his multi-million dollar portfolio.

The 29-year-old is now one of only a few self-made cryptocurrency billionaires, according to data from Forbes.

Bankman-Fried told Bloomberg that he believes the rally in his solana cryptocurrency is “partially a delayed reaction to the work that’s been put into the ecosystem over the last year, and the need to find scalable solutions for DeFi as the ecosystem grows.”

DeFi or decentralized finance refers to blockchain-based trading and lending platforms that are automated by software.

DeFi applications continue to disrupt the finance industry. If you want to learn more, check out Insider’s recent breakdown of the Defi phenomenon and the 10 largest assets in the space.

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