Bitcoin has been trading between $10000 and $13000 in the past month until last week’s turbulence. Bitcoin briefly fell below $10000 losing 20% of its value. Altcoins dropped even faster. It’s totally normal for cryptocurrencies to fall double digit. Prices have rebounded towards the end of the week. Bitcoin is now back at $10000 level. Ether and Bitcoin Cash remained stable around $212 and $305 compared to last week.
The price volatility was partly due to Facebook’s Libra coin hearings. Libra elevated the topic of cryptocurrencies among the politicians, financial leaders and lawmakers. During the Libra hearing Bitcoin was mentioned as an unstoppable force. Even the word shitcoin has been mentioned by a congressman after which the Google search for shitcoin exploded through the roof. (The term shitcoin refers to those altcoins that are possibly a scam or a worthless project. Governmental activity around cryptocurrencies increased, they can no longer afford to ignore cryptocurrencies thanks to Facebook’s Libra project for example.
Bitcoin crossed over $3 billion in daily transaction and set a 30 day volume record at $770 billion. The total amount of Wrapped Bitcoin (WBTC) tripled overnight. WBTC is an ERC20 version of Bitcoin. WBTC is created by locking Bitcoin into an Ethereum smart contract and then users can use Bitcoin on Ethereum blockchain. According to defipulse there are now almost $6 million worth of Bitcoin is wrapped on Ethereum whereas there are $9.6 million Bitcoin locked on Bitcoin second layer, Lightning network. If Wrapped Bitcoin continues to grow then there will be more Bitcoins in Ethereum’s second layer than on Bitcoin’s second layer