What looked to be prime time for crypto assets on soft inflation data turned into an ugly week with Bitcoin (B T c) On Friday, it fell to its lowest level in four weeks.
BTC fell more than 2% in an hour to $65,100 during the US trading session, hovering around $67,000. The flagship crypto has declined 7.5% in the past seven days.
Smaller cryptocurrencies saw even deeper declines, with the broad market benchmark CoinDesk 20 Index down roughly 12% week-to-date. (ETH) tumbled to $3,400, a loss of more than 10% during this period, while the native token of rival layer-1 network Solana (SOL)Avalanche (AVX)Cardano (ADA) and near (near) fell by 15%-20%, CoinGecko Data Shows it.
The past 24 hours saw a sharp decline in leveraged derivatives trading positions worth about $180 million across all crypto assets, the majority of which were bets on higher prices. Coinglass Data RevealsA total of over $870 million worth of liquidations took place during the week, flushing excess credit from the markets.
Analysts and many market participants predicted just a few days ago that Bitcoin would reach new record highs, supported by slowing inflation and soft economic data, but the bullish efforts were quickly sold off, leaving BTC stuck in its range.
The Federal Reserve on Wednesday forecast just one rate cut for this year, lower than the central bank’s previous forecast, dampening investors’ hopes about loose monetary policy coming this summer. Political uncertainty The US dollar index (DXY) also rose against other major currencies in Europe to its strongest level in more than a month, putting pressure on Bitcoin, following the announcement of early elections in France.
Bitcoin also struggled due to increased selling by miners and profit-taking by long-term holders around $70,000, which weighed on the broader crypto market, 10X Research reported.
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