A sharp dip in whale activity and the total number of active addresses have extended the current negative market sentiment around Bitcoin (BTC). On Friday, the crypto asset lost the $40,000 price level for the first time in 2 weeks and has remained under pressure since then.
In the past 7 days, Bitcoin has dropped by almost 8%. In terms of weekly performance, BTC remained the worst-performing digital asset among the top 10. As a result, the overall market capitalization of digital currencies has struggled to break above $1.9 trillion.
“The price of bitcoin began the week marching to the $44,000 level but sank on renewed tensions between Ukraine and Russia on Thursday. BTC dropped from a high of $44,510 on the eToro platform to trade around the $40,000 level. A second hit to crypto prices took place over the weekend on the news that a major NFT hack took place. The panic from NFT traders on social media sent the price even lower to trade around $38,000. At the time of writing the price has recovered a little and is now around $39,000,” Simon Peters, Market Analyst at eToro, said.
Altcoins
The story across the altcoin market was a little different. Solana and Terra have jumped by more than 6% in the past 24 hours. AVAX, Cardano, BNB, and Ethereum have also witnessed decent gains in the mentioned period.
While altcoins have seen marginal price recovery in the last 24 hours, some of the digital assets are still down by as much as 60% from their all-time highs.
Commenting on the recent developments in the crypto market, Peters said: “Georgia has become the latest state in the US to signal that it’s ready to incentivize the crypto mining sector. What is clear is that a variety of states are now vying to be seen as the most pro-crypto possible. This is a very positive signal for the market and the industry more broadly.”
