New week starts with new declines in BTC and other cryptos
August 28, 2023 9:28 pm
Monday morning saw Bitcoin began the week with a decline, maintaining this trajectory throughout the day. As of the time of writing, the value of BTC hovers near the $26,114 mark.
According to CoinMarketCap, over the past 24 hours, Bitcoin’s peak price reached $26,165, with a low of $25,991.
Meanwhile, the cryptocurrency market experienced diverse sentiments in the past week. Over the last seven days, BTC tested levels below $26,000 and even flirted with the $27,000 mark. Nevertheless, its value scarcely changed by week’s end.
The preceding week exhibited a noteworthy influence on digital currency markets stemming from the uncertain dynamics of the US stock markets. At the close of the five-day trading span, the Dow Jones Industrial Average dropped by 0.4%, the S&P 500 grew by 0.8%, and the Nasdaq Composite surged by 2.3%.
Significantly, experts have highlighted an increased correlation between cryptocurrency and stock markets in recent months.
In late February, analysts from the American investment company Bernstein revealed that in January, the correlation between digital gold and the NASDAQ Composite index plummeted from 0.94 to 0.58.
According to Bernstein experts, the cryptocurrency market teeters between bullish and bearish trends, awaiting further catalysts. Simultaneously, its responsiveness to critical news and events in the financial world has notably diminished.
In early 2022, analysts, conversely, frequently emphasized a high level of correlation between the American stock market and the virtual asset market. This occurred against the backdrop of tense anticipation for both the implications of the geopolitical conflict in Eastern Europe and the subsequent actions of the US Federal Reserve. In the middle of the past year, experts from Arcane Research declared that the correlation between BTC and technology equities had reached its zenith since July 2020.
Meanwhile, economists at Trading View asserted that in the fourth quarter of 2022, the correlation between the cryptocurrency market and the US stock market stood at 70%.
Altcoin market movements
Ethereum, the chief rival to Bitcoin, also started Monday with a decline and maintained this trajectory throughout the day. At the time of writing, the coin is trading at $1,648. Over the past week, the ETH price barely shifted, closing the seven-day span near the $1,658 mark.
Analysts anticipate that the coin’s future trend will depend on whether it falls below $1,600 or rises above $1,950.
Turning to the top-10 cryptocurrencies by market capitalization, within the past 24 hours, the most favorable outcomes were seen for Solana (+1.05%), while XRP suffered the most (-10.48%).
Looking back on the previous week, within the top-ten cryptocurrencies, the decline list was led by Solana (-4.69%), while the growth list was led by Tron (+2.17%).
According to CoinGecko, the world’s largest aggregator of virtual asset data, within the last 24 hours among the top 100 most capitalized digital assets, the highest increase was achieved by dYdX (+4.63%), whereas Theta Network saw the biggest decrease (-4.78%).
Over the past week, among the top hundred strongest cryptocurrencies, the poorest results were demonstrated by Pepe (-21.72%), while the best performer was dYdX (+12.85%).
According to CoinGecko’s data, as of Monday evening, the total market capitalization of cryptocurrencies stands above the significant key level of $1 trillion, amounting to $1.033 trillion. This figure has decreased by 0.23% over the past day.
Since reaching its peak above $3 trillion in 2021, the cryptocurrency market capitalization has shed over $2 trillion.
Traditionally, August is considered an unfavorable period for Bitcoin. Over the past 12 years, the crypto ended this month with gains in only five instances and losses in seven.
The average August gain is around 26%, while losses average around 16%. If in the current August, the primary cryptocurrency attempts to replicate the approximate dynamics of previous years, it could rise to $36,800 in a month, renewing this year’s highs, or plummet to $24,500, setting new lows for June.
In the previous July, Bitcoin experienced a 4% decline, closing the month around the $29,200 mark. At the close of June, the price of BTC surged by 12.1% to reach $30,400. In May, Bitcoin declined by 7.6%, ending the month at $27,100. April saw BTC lose nearly 10%. As of the end of March, the coin’s value soared by 22.6%, marking the third consecutive month of growth amid the normalization of the banking crisis situation.
Bitcoin wrapped up the preceding February with a 0.9% increase, reaching $23,200, and gained almost 40% in the first month of 2023. This made January the best month for Bitcoin since October 2021. Notably, January to March of this year proved to be the best quarter for the coin since the start of 2021, with BTC emerging as one of the most profitable assets.
The key driver behind the growth of the digital currency market since the beginning of 2023 has been the impending crisis in the traditional financial market. Securities and bonds are navigating a rather challenging period. This is precisely why we are witnessing an ever-growing inclination among investors worldwide to invest in virtual currencies.
The material has been provided by InstaForex Company – www.instaforex.com
Monday morning saw Bitcoin began the week with a decline, maintaining this trajectory throughout the day. As of the time of writing, the value of BTC hovers near the $26,114 mark.
According to CoinMarketCap, over the past 24 hours, Bitcoin’s peak price reached $26,165, with a low of $25,991.
Meanwhile, the cryptocurrency market experienced diverse sentiments in the past week. Over the last seven days, BTC tested levels below $26,000 and even flirted with the $27,000 mark. Nevertheless, its value scarcely changed by week’s end.
The preceding week exhibited a noteworthy influence on digital currency markets stemming from the uncertain dynamics of the US stock markets. At the close of the five-day trading span, the Dow Jones Industrial Average dropped by 0.4%, the S&P 500 grew by 0.8%, and the Nasdaq Composite surged by 2.3%.
Significantly, experts have highlighted an increased correlation between cryptocurrency and stock markets in recent months.
In late February, analysts from the American investment company Bernstein revealed that in January, the correlation between digital gold and the NASDAQ Composite index plummeted from 0.94 to 0.58.
According to Bernstein experts, the cryptocurrency market teeters between bullish and bearish trends, awaiting further catalysts. Simultaneously, its responsiveness to critical news and events in the financial world has notably diminished.
In early 2022, analysts, conversely, frequently emphasized a high level of correlation between the American stock market and the virtual asset market. This occurred against the backdrop of tense anticipation for both the implications of the geopolitical conflict in Eastern Europe and the subsequent actions of the US Federal Reserve. In the middle of the past year, experts from Arcane Research declared that the correlation between BTC and technology equities had reached its zenith since July 2020.
Meanwhile, economists at Trading View asserted that in the fourth quarter of 2022, the correlation between the cryptocurrency market and the US stock market stood at 70%.
Altcoin market movements
Ethereum, the chief rival to Bitcoin, also started Monday with a decline and maintained this trajectory throughout the day. At the time of writing, the coin is trading at $1,648. Over the past week, the ETH price barely shifted, closing the seven-day span near the $1,658 mark.
Analysts anticipate that the coin’s future trend will depend on whether it falls below $1,600 or rises above $1,950.
Turning to the top-10 cryptocurrencies by market capitalization, within the past 24 hours, the most favorable outcomes were seen for Solana (+1.05%), while XRP suffered the most (-10.48%).
Looking back on the previous week, within the top-ten cryptocurrencies, the decline list was led by Solana (-4.69%), while the growth list was led by Tron (+2.17%).
According to CoinGecko, the world’s largest aggregator of virtual asset data, within the last 24 hours among the top 100 most capitalized digital assets, the highest increase was achieved by dYdX (+4.63%), whereas Theta Network saw the biggest decrease (-4.78%).
Over the past week, among the top hundred strongest cryptocurrencies, the poorest results were demonstrated by Pepe (-21.72%), while the best performer was dYdX (+12.85%).
According to CoinGecko’s data, as of Monday evening, the total market capitalization of cryptocurrencies stands above the significant key level of $1 trillion, amounting to $1.033 trillion. This figure has decreased by 0.23% over the past day.
Since reaching its peak above $3 trillion in 2021, the cryptocurrency market capitalization has shed over $2 trillion.
Traditionally, August is considered an unfavorable period for Bitcoin. Over the past 12 years, the crypto ended this month with gains in only five instances and losses in seven.
The average August gain is around 26%, while losses average around 16%. If in the current August, the primary cryptocurrency attempts to replicate the approximate dynamics of previous years, it could rise to $36,800 in a month, renewing this year’s highs, or plummet to $24,500, setting new lows for June.
In the previous July, Bitcoin experienced a 4% decline, closing the month around the $29,200 mark. At the close of June, the price of BTC surged by 12.1% to reach $30,400. In May, Bitcoin declined by 7.6%, ending the month at $27,100. April saw BTC lose nearly 10%. As of the end of March, the coin’s value soared by 22.6%, marking the third consecutive month of growth amid the normalization of the banking crisis situation.
Bitcoin wrapped up the preceding February with a 0.9% increase, reaching $23,200, and gained almost 40% in the first month of 2023. This made January the best month for Bitcoin since October 2021. Notably, January to March of this year proved to be the best quarter for the coin since the start of 2021, with BTC emerging as one of the most profitable assets.
The key driver behind the growth of the digital currency market since the beginning of 2023 has been the impending crisis in the traditional financial market. Securities and bonds are navigating a rather challenging period. This is precisely why we are witnessing an ever-growing inclination among investors worldwide to invest in virtual currencies.
The material has been provided by InstaForex Company – www.instaforex.com
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