The crypto market has faced sharp declines recently, with major players like Bitcoin and Ethereum experiencing notable losses.
Bitcoin dropped below $100,000, while Ethereum fell to $3,147, contributing to a 6% reduction in the total market cap, which now stands at $3.49 trillion. Broader financial market instability is seen as the driving force behind this downturn, impacting cryptocurrencies and traditional risky assets alike.
Bitwise CIO Matt Hougan addressed the situation, explaining that Bitcoin’s performance often mirrors traditional markets, particularly the S&P 500. Historical data shows Bitcoin tends to drop slightly more than the S&P 500 during market pullbacks but demonstrates remarkable recovery potential, with average gains of 189% within a year following major declines.
Meanwhile, stablecoin activity, especially with USDC, has increased, signaling cautious preparation from investors rather than active buying. Weak U.S. demand for Bitcoin, reflected in Coinbase Premium turning negative, underscores lingering hesitancy.
Analysts predict a prolonged consolidation phase for the market, though Hougan remains confident in Bitcoin’s long-term resilience, framing the current slump as a typical short-term fluctuation rather than a structural shift.
XRP (XRP) has gone up by 1.2% in the past 24 hours but, behind that mild price increase, there has been a significant spike in trading volumes. During this period, $2.4 billion worth of XRP has exchanged hands, representing an 83% increase. Just hours ago, Ripple announced the official launch of its Ethereum-compatible sidechain called […]
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