Crypto Market’s Performance Deteriorates, Experiencing a 6% Decline
The cryptocurrency market experienced a shift in sentiment over the past week, with most digital currencies seeing a decline in value after a strong performance two weeks ago. The global cryptocurrency market cap dropped from $1.12 trillion to $1.06 trillion, marking a nearly 6% decrease. This drop can be attributed to the United States Federal Reserve System’s decision to increase interest rates by 25 bps, which had a bearish impact on both stocks and the crypto market as a whole.
While the market as a whole saw a decline, there were some altcoins that bucked the trend and saw notable increases in value. One such altcoin is Stacks (STX), which has been on a rampage for the past three weeks. Although it experienced some retracement from its high of $0.88 to $0.78, it still recorded gains of more than 24%. However, even STX was not immune to the overall bearish sentiment, as it dipped to a low of $0.54.
Taking a closer look at the performance of the top 10 cryptocurrencies, Bitcoin (BTC) was the main focus of the week. Despite starting off positively and gaining almost 3%, it faced strong rejection after retesting and flipping the $25k resistance level. It dropped below its opening price and recorded its first red candle of the week. The bearish fundamentals on Wednesday further added to its decline, with BTC briefly losing the $23k support and dropping to a low of $22,800. It closed the week at $23,190, marking a more than 3% decrease in value.
Ethereum (ETH) had a similar performance to Bitcoin, with its price fluctuating throughout the week. It briefly flipped the $1,700 level on Monday, reaching a high of $1,721, but also dipped to a low of $1,650. The bearish trend continued as ETH lost the $1,600 support on Wednesday, dropping to a low of $1,594. It closed the week with losses of almost 3%.
Binance Coin (BNB) attempted to flip the $320 resistance level but failed, with its price retracing after the retest and dipping to a low of $307. It closed the week with no significant change in value, experiencing a slow decline in buying volume. The Relative Strength Index (RSI) reflected this gradual decrease, mostly ranging between 45 and 50.
Ripple (XRP) had a mix of volatility and minimal movement throughout the week. It made its biggest move during the first three days, attempting to reach $0.40 but falling short. It closed the week with losses of more than 2%, dipping to a low of $0.36.
Overall, the crypto market saw a decline in value due to the bearish sentiment caused by the US Federal Reserve’s decision to increase interest rates. While some altcoins performed well, most cryptocurrencies experienced losses.
