Weekly Crypto Market Recap: Volatility and Shift in Dominance

It was another eventful and highly volatile week in the cryptocurrency industry that began on the wrong foot, yet again. Let’s dive in.

After a relatively sluggish weekend, during which BTC hovered around $86,000 without any significant moves in either direction, Monday dawned with volatility that pushed the asset south to $80,000 before it bounced back to $84,000.

However, that relief rally was short-lived as bitcoin nosedived once again on Tuesday. This time, the plunge was even more painful as BTC fell below $77,000 for the first time since early November 2024.

Fortunately, bulls managed to intercept the decline and prevent a further breakdown. In fact, bitcoin shot back up to $84,000 the following day after the better-than-expected CPI numbers for February were released. Nevertheless, the cryptocurrency failed to maintain its momentum and retreated to $81,000 and even dipped to $80,000 on Thursday and early Friday.

Consolidation continued over the past 12 hours, this time at the upper boundary of that channel. Currently, BTC is close to $84,000, but the overall landscape remains grim. The weekly scale has been painful as most crypto assets are deep in the red, with Bitcoin leading the pack with a 6% decline since this time last Friday.

Many altcoins have underperformed, resulting in a surge of BTC’s dominance to a four-year high. Some of the most affected altcoins include ETH (-13%), DOGE (-16%), ADA (-17%), LINK (-16%), LTC (-13%), and SUI (-18%).

Market Data

Market Cap: $2.811T | 24H Vol: $94B | BTC Dominance: 58.9%

BTC: $83,092 (-6.4%) | ETH: $1,895 (-8.3%) | XRP: $2.3 (-8.3%)

This Week’s Crypto Headlines You Can’t Miss

SEC Reportedly Considering Classifying XRP as a Commodity. Although the legal tussle between the SEC and Ripple continues regarding XRP’s status in the nation, recent reports indicate that the regulator may reconsider its position and classify the cross-border token as a commodity, similar to its stance on Ethereum (ETH).

Will Trump’s ‘Short-Term Pain’ Plan Result in Long-Term Gains for Crypto? According to market experts, Trump’s current policies have focused on ‘short-term pain’ to lower inflation and interest rates for long-term benefits. While this has had a catastrophic effect on the crypto market in recent weeks, analysts suggest it could be beneficial for the industry on a broader scale.

MGX Invests $2B in Binance in Historic Crypto Funding Deal. Binance announced earlier this week that it had secured a record-setting investment from one of the largest UAE-based investment firms, MGX. The funding, worth $2 billion, marks MGX’s first entry into the cryptocurrency industry.

Ethereum Nears Key Historical Levels That Preceded Major Rallies. Ethereum’s consistent price declines since mid-January this year have resulted in the asset losing 50% of its value within weeks. However, historical patterns suggest this could be a blessing in disguise and a great accumulation point, with many whales actively acquiring substantial portions of ETH.

Almost $400 Million in BTC: Big Whales and Sharks Rebuilding Positions, Time to Buy Bitcoin? It’s not just ETH; large Bitcoin entities, referred to as whales and sharks, have accumulated roughly $400 million worth of BTC within a short time frame as the cryptocurrency’s price tumbled earlier this week.

Bitcoin’s MVRV Ratio Falls to Yearly Lows – Is This the Ultimate Buy Signal? BTC’s declining price has also influenced many key metrics, including the Market Value to Realized Value (MVRV) ratio, which now stands at 1.8 (the lowest since the 2024 correction). This raises the question: is this an optimal entry point for new investors?