The cryptocurrency market faced a turbulent week, with major coins like XRP and DOGE experiencing significant losses. While Bitcoin (BTC) stabilized over the weekend, the overall market sentiment remains negative. Here’s a breakdown of the key events in the crypto world over the past week.
Bitcoin Stabilizes at $62,000, But Volatility Persists
Last week proved to be challenging for Bitcoin, which started at $66,000 but saw a sharp decline, hitting $63,000 by Monday. Escalating geopolitical tensions in the Middle East further deepened the downward trend, with BTC briefly dipping below $60,000 on several occasions between Wednesday and Thursday. However, the bulls managed to defend this critical level, pushing Bitcoin back up to $62,000 by the end of the week.
Despite this slight recovery, Bitcoin recorded a weekly loss of over 5%, with its market cap dropping from $1.3 trillion to $1.225 trillion. Interestingly, Bitcoin’s dominance over altcoins increased during this period, rising to 54.3%.
XRP and DOGE Take a Beating
XRP was among the most affected altcoins. After a brief moment of optimism earlier in the week, the news of the U.S. SEC appealing a 2023 court decision regarding XRP’s secondary market sales sent the coin into a tailspin. Within 24 hours, XRP plummeted by 15%, dropping from $0.60 to $0.51. Although it managed to recover slightly to $0.53 by the weekend, it remained down by double digits on the weekly chart.
Meanwhile, Dogecoin (DOGE) also saw steep losses, falling 13.7% during the week. Other altcoins like Cardano (ADA), Shiba Inu (SHIB), Polkadot (DOT), and Near Protocol (NEAR) suffered similar declines, with drops ranging from 11% to 12%. These losses underscored the broader negative sentiment across the crypto market.
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$150 Billion Lost in Market Value, Liquidations Surge
The total market capitalization of cryptocurrencies shrank by $150 billion last week, although some of these losses were recovered by the weekend, pushing the market cap back up to $2.25 trillion. Despite the partial recovery, market pressure remains high as investors continue to exercise caution.
Data from Coinglass revealed that over $59.85 million worth of positions were liquidated in the last 24 hours alone. Of these, $33.44 million were long positions, while $26.09 million were short positions, highlighting the ongoing volatility and uncertainty that’s affecting traders.
Geopolitical Tensions and Market Impact
The significant drops in XRP, DOGE, and other altcoins are being attributed to escalating tensions in the Middle East, which have created broader concerns across global financial markets. Cryptocurrencies, highly sensitive to macroeconomic and geopolitical events, have once again demonstrated their vulnerability during periods of uncertainty.
In the coming weeks, all eyes will be on the geopolitical landscape and how it might further impact the volatile crypto market.
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