This week, the cryptocurrency market witnessed a dynamic shift in Bitcoin’s price action. After surging to $86,000 over the weekend, marking its highest point since early July, Bitcoin experienced a swift retreat below $85,000. This rally was fueled by factors like eased customs tariffs and positive U.S. CPI data, which spurred risk appetite. Bitcoin’s market dominance is currently at a 60% peak – the highest level seen in over two years – with altcoins remaining largely stagnant. Meanwhile, Solana (SOL) and TRON (TRX) experienced notable gains of about 3% despite overall market uncertainty.
Last week, Bitcoin underwent a volatile ride, dropping to around $74,000 on Monday before rebounding to $83,000 and finally reaching $86,000. However, the gains were short-lived, leading to a rapid decline back below $85,000. 12.7% of Bitcoin’s market value increased during last week due to these price fluctuations.
One of the most significant events that impacted Bitcoin was the easing of customs tariffs by the Trump administration for non-Chinese countries. This policy change and positive U.S. CPI data from June supported a 12.7% price increase, leading to Bitcoin’s highest market capitalization in history. Currently, Bitcoin boasts a market cap of $1.68 trillion, with market dominance hovering around 60% according to both CoinGecko and TradingView.
However, the story of last week was not solely positive for Bitcoin as Mantra (OM) experienced an alarming crash, dropping by over 90%. This drastic decline is attributed to mandatory liquidations on centralized exchanges. The CEO of the project blamed “irresponsible leveraged trading” for this downfall, which saw OM coin plummet from $6.31 to a mere $0.70 in just one hour and lead to losses exceeding $74.5 million – the second largest liquidity loss after Ethereum (ETH).
On the other hand, Solana and TRON were notable performers, with gains of roughly 3%, standing out as relative winners amidst the overall market uncertainty. Other major cryptocurrencies like XRP, BNB, DOGE, ADA, TON and LINK showed only minor losses.
Despite this, Ethereum’s performance was relatively subdued, increasing by just over 1% in the past 24 hours and reaching above $1,600. However, this gain lagged behind the Bitcoin rally.
The overall crypto market value struggled to break through the critical $2.9 trillion resistance level and witnessed a loss of roughly $20 billion in the last 24 hours, highlighting the current fragility of other assets outside of Bitcoin.