Bitcoin Nosedives to $93,000, AI Agents Meta Remains Hot, Inflation Woes Scare Markets: This Week’s Crypto Recap
The cryptocurrency market experienced a sell-off throughout the past seven days, with the total capitalization shedding close to $200 billion during that period. Bitcoin’s price tumbled toward $93,000, liquidating hundreds of millions in over-leveraged positions in the process, as the majority of altcoins are also in the red.
Bitcoin’s price trades at a 4.5% decline compared to seven days ago and it’s currently around $93,000. This comes after a week of choppy action, where the primary cryptocurrency attempted to climb toward its peak but was stopped abruptly at around $102,000. As soon as the new week began and the expected economic details started coming in, the market plunged, alongside broader stock markets.
On Tuesday, US jobs data came in hotter than expected, making many investors fear that the ongoing rate cuts from the Federal Reserve won’t last long as inflation has been on the rise. Recall that the chairman of the institution – Jerome Powell – hinted at this as well earlier, saying that 2025 will likely see far less rate cuts.
That said, not all of it is doom and gloom. Although the majority of large-cap cryptocurrencies are in the red, AI agents continue to be the talk of the town. Most of their prices are also down on a seven-days basis but they are pumping at the slightest sign of a recovery, hinting that interest in them is still strong. Binance even listed a few of them today, highlighting the attention this particular narrative is receiving.
That said, Bitcoin’s dominance has exploded by 2% in the past seven days, emphasizing its strength relative to that of the rest of the market.
It’s interesting to see how the rest of the month will shape up, especially given that Trump’s inauguration is set for January 20th – a date watched closely by the entire industry.
Market Data
Market Cap: $3.41T | 24H Vol: $181B | BTC Dominance: 54.5%
BTC: $93,800 (-4.5%) | ETH: $3,260 (-8.7% ) | XRP: $2.29 (-6.5%)
This Week’s Crypto Headlines You Can’t Miss
Bitcoin Price Skyrockets Above $100K as MicroStrategy Announces Latest Purchase. Unlike the previous MicroStrategy purchases announced throughout November and December, the one from this week actually sparked an immediate price surge for BTC, which went to a multi-week peak of $102,000. Interestingly, it was one of the most modest MicroStrategy acquisitions in recent history, as the firm spent ‘only’ $101 million to buy 1,070 BTC.
Arthur Hayes Expects the Crypto Market to Peak in March: Here’s Why. The former BitMEX CEO believes the entire crypto market will go through a real-life rollercoaster once January 20 (inauguration day) approaches. Aside from those expected short-term fluctuations, he predicted that the current bull cycle still has some legs but will likely finish by March this year.
US Govt Cleared to Liquidate $6.5B in BTC from Silk Road, But Don’t Panic. Perhaps the biggest FUD this week came from a few reports claiming that the US had been clear to sell off $6.5 billion seized from Silk Road. Looking at the fine print, though, shows that the authorities might have already disposed of the assets, so no FUD is necessary.
US Entities’ Bitcoin Holdings Reach Massive Record: Details. On a more positive note coming from the world’s largest economy, locally based entities, such as ETFs, exchanges, MicroStrategy, miners, and others, have grown their overall BTC share – a figure that is 65% higher now than non-US-based counterparts.
Ripple Executives Meet Donald Trump at Mar-a-Lago Event. With Trump set to assume office in ten days and his multiple positive promises for the crypto industry, reports are coming left and right about crypto execs meeting with the President-elect and his team. The latest to do so were two of Ripple’s chief executive – CEO Brad Garlinghouse and CLO Stuart Alderoty.
Ethereum Outpaces Bitcoin as Long-Term Holders Soar to 74.7%. Long-term holders (LTHs) seem more inclined to hold ETH for a longer period than BTC. Data from IntoTheBlock shows that 74.7% of Ethereum addresses belong to such investors, while the number for BTC’s LTH ratio is at just over 60%. However, this is expected to change if ETH’s price nears its 2021 all-time high of almost $5,000.
Charts
This week, we have a chart analysis of Ethereum, Ripple, Cardano, Binance Coin, and Solana – click here for the complete price analysis.
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