Bitcoin and Altcoins Plunge, Mt. Gox Begins Repayments, German Government Continues Selling: Weekly Crypto Update
The past week in the world of cryptocurrency has been quite eventful, with significant fluctuations in the market. Total market capitalization took a hit, losing a staggering $200 billion, representing a decrease of around 10% within just seven days.
The primary driver of this downturn was the notable losses experienced by Bitcoin and altcoins. Bitcoin’s dominance in the market, as measured by the BTC dominance metric, increased by approximately 0.3% over the week, highlighting the struggles faced by alternative cryptocurrencies.
Bitcoin itself saw a sharp decline of 9%, dropping to below $54,000, a level not witnessed in many months. The week started on a positive note, with Bitcoin reaching an intraweek high of nearly $64,000 on July 1st, only to spiral downward thereafter.
The market was heavily influenced by bearish sentiment, leading to widespread declines across various altcoins. Ethereum, for instance, experienced a 14% drop, trading below the crucial $3,000 mark. Similarly, BNB plummeted by 14.4%, trading under $500. Other major altcoins such as ADA, SOL, XRP, and AVAX also recorded declines ranging from 8% to 15%. Meme coins like DOGE and SHIB were not spared either, with losses of 20% and 19%, respectively.
The market turbulence was further exacerbated by significant events such as Mt. Gox, the now-defunct crypto exchange, transferring $2.7 billion to a new address, triggering concerns of immediate sell-offs. Additionally, the German government, which held around 50,000 BTC seized years ago, sold off close to 10,000 BTC in recent days, adding to the market uncertainty.
Despite the current challenges, there are indications of a slight market recovery, with experts like Adam Back viewing the situation as an opportunity that could yield positive outcomes in the future.
Looking ahead, the crypto community remains cautious about the market’s trajectory in the coming weeks, with uncertainty prevailing. However, the recent market movements suggest that the crypto space is once again gaining momentum.
In terms of market data, the overall market capitalization stands at $2.146 trillion, with a 24-hour trading volume of $155 billion and BTC dominance at 51.2%. Bitcoin is currently priced at $55,798, reflecting an 8.9% decrease, while Ethereum is trading at $2,962, down by 13.9%, and BNB at $492, marking a 14.4% decline.
