The cryptocurrency market experienced a tumultuous week, marked by significant volatility, substantial ETF inflows, and a broad market shakeout. Here's a comprehensive overview of the key events that shaped the crypto landscape this week, focusing on Bitcoin, altcoins, and notable market movements.
Key Takeaways
Bitcoin Volatility: Bitcoin's price experienced significant swings, initially rallying to $71K before crashing to $69K, reflecting market volatility and investor unease.
Market Shakeout: The broader crypto market saw a substantial selloff midweek, driven by stronger-than-expected U.S. employment data, but traders remain optimistic about a bullish rebound.
ETF Inflows: U.S.-listed spot Bitcoin ETFs recorded their longest accumulation streak, with substantial inflows despite market turbulence, indicating sustained investor interest.
Crypto Weekly Recap:
Bitcoin and Altcoins Tease Investor Hopes
The week started with optimism as Bitcoin's price rallied, crossing the $71K mark and sparking bullish discussions across the global crypto community. This surge was driven by record-breaking BTC ETF inflows, which were recorded for 19 consecutive days, along with an ETF approval in Thailand. However, the excitement was short-lived as Bitcoin's price later crashed to $69K, causing uneasiness among investors.
Altcoins mirrored Bitcoin's turbulent price action. Ethereum (ETH), Solana (SOL), and other major altcoins initially saw considerable gains, only to follow Bitcoin's downward trajectory.
Despite a general selloff, there were significant developments such as BitMEX unveiling a Bitcoin futures listing and Bitcoin miner Core Scientific securing a 12-year deal with Nvidia-backed CoreWeave.
Market Tumble and Bullish Rebound Expectations
Midweek, the crypto market experienced a downturn following stronger-than-expected U.S. employment data. This data contradicted predictions that weaker employment figures would pressure the Federal Reserve to lower interest rates, potentially driving Bitcoin to new highs. Despite the downturn, traders remain optimistic, viewing it as a brief shakeout before an anticipated bullish continuation.
Bitcoin fell 1.99% over the past 24 hours, dropping back down to $69,410. Ethereum declined by 3.22%, while altcoins like Pepe, Solana, and Dogecoin suffered even more significant losses. Traders are closely watching key support levels, with many seeing the market decline as a buying opportunity.
Big Friday Selloff and ETF Inflows
What began as a challenge to Bitcoin's all-time highs on Friday turned into a rapid selloff. Bitcoin's price fell below $70K, erasing most of its weekly gains. The broader crypto market saw even larger declines, with significant liquidations amounting to $450 million. This selloff was exacerbated by stronger-than-expected U.S. employment data, which dashed hopes for an imminent interest rate cut by the Federal Reserve.
Despite the market turmoil, U.S.-listed spot Bitcoin ETFs saw significant inflows, marking the largest accumulation streak since their launch. The ETFs completed an 18-day streak of inflows, accumulating over 56K bitcoins, highlighting ongoing investor interest despite the volatile market conditions.
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