The cryptocurrency market is holding its breath after a brutal week that saw Bitcoin shed nearly ten thousand dollars in value. The bearish turn has pushed the leading digital asset to a critical support level, with investors now anxiously awaiting Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole symposium for signals on the future of the economy.
A Swift Reversal from Last Week’s Highs
Rewinding to just a week ago, the market sentiment was entirely different. Bitcoin had just painted a new all-time high above $124,000, and despite a minor retrace, bullish conviction was strong. That optimism, however, proved short-lived.
The downturn began early in the business week after high-stakes meetings between world leaders failed to yield any positive developments for the Russia-Ukraine conflict. After a quiet weekend hovering around $117,500, Bitcoin took a sharp dive to $115,000 on Monday. The selling pressure intensified as the week progressed, with BTC sliding to $113,000 by mid-week.
In the last 24 hours, the pain has deepened. Bitcoin dumped below $112,000 for the first time since July 10, testing a crucial support level. A sustained break below this point could spell further trouble for the market, potentially opening the door to a revisit of five-digit price territory.
Market Data Snapshot
Market Cap: $3.870 Trillion
24H Volume: $121 Billion
BTC Dominance: 57.5%
BTC: $112,040 (-6.0%)
ETH: $4,220 (-9.0%)
XRP: $2.79 (-10.4%)
Altcoins Suffer, But Outliers Shine
The bearish sentiment was not confined to Bitcoin. The broader altcoin market saw significant losses, with Ethereum (ETH) dropping 9% and XRP plunging by over 10%. Other major assets like HYPE, Cardano (ADA), and SUI recorded even more substantial declines.
However, not all was grim. Binance Coin (BNB) bucked the trend, charting a new all-time high this week. The undisputed star of the show was OKB, which exploded with a massive 130% surge, taking it to a fresh peak of its own above $225.
This Week’s Crypto Headlines You Can’t Miss
Beyond the price action, the industry saw several major developments:
MetaMask Enters Stablecoin Wars: The leading Ethereum wallet, MetaMask, launched its own stablecoin, mUSD. Backed by payments giant Stripe, the new asset operates on-chain through M0, marking a significant entry into the competitive stablecoin arena.
MicroStrategy’s Bitcoin Stash Grows: Demonstrating conviction amidst the market shakiness, corporate Bitcoin bull MicroStrategy continued its accumulation strategy, acquiring an additional 430 BTC. Similarly, MetaPlanet scooped up another 775 BTC.
Kanye West’s YZY Meme Coin Soars and Crashes: Hip-hop legend Kanye West (Ye) launched a Solana-based meme coin, YZY. The token experienced a meteoric rise to a $3 billion market cap before plummeting nearly 80% amid widespread speculation of a rug pull.
Ripple Expands Stablecoin Reach in Japan: Despite a falling token price, Ripple continued its global expansion. The company tapped SBI Holdings to distribute its RLUSD stablecoin in Japan through the subsidiary SBI VC Trade.
SEC Chair Signals Softer Stance: In a notable shift from his predecessor, current SEC Chair Paul Atkins confirmed that in his view, “very few” cryptocurrencies qualify as securities. This potential change in regulatory perspective could have long-term implications, though it did little to stop the immediate market correction.
Solana Hits 100,000 TPS Milestone: The Solana network achieved a major technical feat, briefly surpassing 100,000 transactions per second (TPS) during a weekend mainnet test, showcasing its high-throughput capabilities.
As the week closes, the crypto market is at a critical juncture. The immediate future hangs on the words of Jerome Powell, whose commentary on inflation and interest rates will likely set the tone for all risk assets, including Bitcoin.
