Bitcoin Tries To Break Through $70K Once Again As Altcoins Experience Losses

Bitcoin (BTC) and the broader crypto market experienced a significant decline on Friday when the leading cryptocurrency tested $69,000 but failed to maintain that level, resulting in a drop of over $2,000. The weekend saw minor fluctuations as the asset managed to regain some value, stabilizing around $67,500. The cumulative market capitalization of all crypto assets has decreased by over $80 billion, falling to under $2.7 trillion on CoinGecko.

Maintaining Momentum

On Monday, Bitcoin briefly surpassed $70,000. Despite an initial setback, it rebounded and exceeded that threshold on Tuesday. It maintained levels above $70,000 for several days and even reached a multi-week peak of $72,000 on Friday. However, echoing the previous Friday, Bitcoin faced resistance at $72,000, leading to a sharp decline driven by bearish sentiment. The flagship crypto dropped to a multi-day low of $68,500. While it has since recovered slightly and now hovers above $69,200, it remains down by nearly 3% for the day.

Elsewhere, various altcoins have suffered even more significant losses. Ethereum (ETH) has declined by 3.5% and is trading below $3,700. BNB dropped to under $690, while SOL plummeted by nearly 6%. Further losses were observed in Dogecoin (-8.5%), Avalanche (-7%), Chainlink (-7%), Polkadot (-8%), NEAR (-8%), UNI (-7%), and MATIC (-8%). FIL was the only notable gainer, while WIF, ARB, and FET have experienced double-digit declines.

Other Markets

The upcoming Fed Dot Plot release is anticipated to shed light on the stance being taken by the central bank regarding potential rate cuts, reflecting ongoing concerns over inflation. Meanwhile, Wall Street continues to exhibit renewed risk appetites, driving market activity. However, expectations suggest that the Fed may temper its rate-cutting plans due to persistent inflationary pressures.

Meanwhile, a significant asset sale by banks is providing a boost to the bond market, as detailed in the Credit Weekly report. Recent developments include prolonged work stoppages by the Mali Bankers Union following the arrest of their leader alongside Colombia deciding to halt coal sales to Israel.

Additionally, U.S. sugar tariffs are prompting candy makers to relocate operations to Canada, while an oil rally lifts commodity prices and global equities although Treasury bonds have declined. Lastly, Colombian banks are being urged to stimulate growth through affordable credit provision.