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Although bulls seem to be losing the fight to keep Bitcoin’s price above $43,000, altcoins took the reins and galloped higher.
On May 18, Bitcoin (BTC) and the broader cryptocurrency industry experienced another round of selling as FUD — panic, volatility, and doubt — influenced investor sentiment following reports from Reuters and numerous social media outlets that China will prohibit financial institutions and payment firms from offering services related to cryptocurrency transactions.
According to these sources, China has also sent an alert to many Chinese trade groups regarding the risks of investing in cryptocurrencies.
Data from TradingView shows that bulls attempted to push the price of Bitcoin back above the $45,000 resistance level on May 18 only to have the price battered back below $43,000.
Although the situation for Bitcoin could seem grim to others, some fundamental trends, such as increased BTC outflows from the top US crypto exchange Coinbase and the announcement that MicroStrategy used the most recent dip to purchase another $10 million worth of BTC, suggest that the top cryptocurrency has room to rise higher.
The precarious essence of Bitcoin’s present trading dynamics is perhaps best summed up in the following tweet from cryptocurrency strategist and Twitter personality Rekt Capital, which emphasises the significance of BTC’s upcoming regular end.
— Rekt Capital (@rektcapital) May 18, 2021
Altcoins shake off the downturn
Despite the full-frontal FUD attack that the crypto market has been subjected to in recent weeks, multiple altcoins have seen their values breakout in recent days as markets move out of underperforming tokens and into bullish tokens.
MATIC, the native token of Polygon, a quickly expanding Ethereum layer-two solution that has morphed into an oasis for traders searching for lower fees, has had the best success this week.
On May 18, Synthetix Network Token (SNX) saw a 40 percent increase in trading volume, bringing its price to an intraday high of $25.64, while the Binance Smart Chain-based DeFi platform Venus’ XVS token rose 63 percent to an intraday high of $143.41.
Other notable double-digit gainers include ARK and Celer Network’s CELR, which both gained 40%, and AAVE and Helium Network Token, which gained 20%. (HNT).
The total cryptocurrency market capitalisation is now $2.076 trillion, with Bitcoin dominating at 39.4 percent.