Bitcoin made an attempt to break the $43,000 level over the weekend, but its efforts were short-lived as the cryptocurrency failed to sustain its momentum. After reaching a new 19-month peak on Saturday, bitcoin started retracing slowly on Sunday. However, Monday saw a significant drop of $3,000, bringing its price to just under $41,000. The following day, bitcoin experienced another dump, reaching a weekly low of $40,200. Despite these setbacks, the bulls managed to push the cryptocurrency’s price back up to $43,000.
Market Reaction to CPI Data and Ledger Vulnerabilities
The US Consumer Price Index (CPI) data released on Wednesday did not have a significant impact on bitcoin’s volatility. However, on Thursday, the cryptocurrency faced a new challenge with the discovery of vulnerabilities in Ledger wallets. As a result, bitcoin experienced a sharp decline of nearly $2,000 within minutes. Fortunately, the market recovered most of its losses after the wallet company announced a fix to the issues.
While bitcoin reached a local peak of $42,750 on Friday and Saturday, it was unable to surpass this level. Currently, bitcoin’s price hovers just below $42,000, and its market cap has fallen below $820 billion. Despite this, bitcoin maintains a dominance of 51.7% over altcoins according to CoinMarketCap.
The past week witnessed the rise of BONK, a meme coin based on the Solana blockchain. At one point, BONK experienced daily gains of over 100% and weekly gains of more than 1,200%, reaching an all-time high. This upward trend also had a positive impact on the price of Solana (SOL), although the asset has retraced over the weekend and currently trades slightly above $70.
Another altcoin that showed impressive gains is Internet Computer (ICP), with a 15% increase in the past 24 hours and over 80% on a weekly scale. As a result, ICP’s price now surpasses $10. On the other hand, Shiba Inu (SHIB) recorded a 9% jump within the past 24 hours. However, most larger-cap altcoins are in the red, with Ethereum (ETH) experiencing a 1.5% loss, Binance Coin (BNB) down by 2.5%, Cardano (ADA) plummeting by over 3%, and Chainlink (LINK) facing a similar decline.
The total market capitalization of the cryptocurrency market has decreased by $20 billion since yesterday and currently stands at $1.580 trillion. This decline can be attributed to the mixed performance of altcoins and the lack of sustained momentum for bitcoin above the $43,000 level.
Bitcoin’s attempt to break $43,000 was met with resistance, leading to its price retracing to around $42,000. The cryptocurrency faced challenges from the US CPI data and vulnerabilities in Ledger wallets, resulting in short-term volatility. While meme coins like BONK and altcoins like ICP and SHIB experienced notable gains, most larger-cap altcoins faced losses. The overall market cap of the cryptocurrency market has declined, reflecting the mixed performance and uncertainty in the current market conditions.
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