Bitcoin’s Rally Toward $27K Stopped, But Network Fundamentals and Whale Activity Remain Strong (Weekly Crypto Recap)

In our weekly crypto recap, we explore Bitcoin’s recent rally and how it hit a roadblock near $27,000. Despite this, we examine how the network fundamentals and whale activity in the cryptocurrency market remain strong. Stay updated on the latest happenings in the world of cryptocurrencies.

The Volatile Journey of Bitcoin Price

Last week proved to be quite eventful for the primary cryptocurrency, Bitcoin. The price of Bitcoin experienced a significant drop of over $3,000 in just a few hours, reaching its lowest point in over two months at slightly above $25,000. However, the cryptocurrency quickly attempted to recover and managed to regain approximately $1,000.

Since then, Bitcoin’s price has remained relatively stable around the $26,000 mark, with only a couple of exceptions. Earlier this week, it suddenly dropped by over $500, and a similar occurrence happened yesterday as well.

Thursday witnessed a more notable price jump, pushing BTC’s value up to $26,800. However, just as the bulls were preparing to challenge the $27,000 resistance level, the landscape shifted. Bitcoin lost its momentum and fell back to the familiar sight of $26,000.

Accumulation of BTC by Whales and Sharks

Amid the underwhelming performance of Bitcoin’s price, larger investors have taken advantage of last week’s crash to accumulate BTC. According to the crypto analytics platform Santiment, the so-called sharks and whales have collectively acquired over $300 million worth of Bitcoin.

Moreover, Santiment revealed that the number of wallets holding between 10 and 10,000 BTC has increased significantly, surpassing 150,000.

Altcoins Show Impressive Gains and Losses

While Bitcoin has experienced minor weekly losses, some altcoins have charted remarkable gains. Ripple, Tron, TONCOIN, and Stellar have all seen increases in value, with XLM leading the pack at a growth rate of 6%.

On the flip side, PEPE, a meme coin, suffered a substantial decrease in price, dropping almost 20% within the same timeframe. The decline in value was accompanied by speculations and reports surrounding suspicious transfers and claims of doxxing the meme coin’s creator.

Market Overview

Market Cap: $1.09B | 24H Vol: $35B | BTC Dominance: 46.4%

BTC: $26,037 (-1%) | ETH: $1,657 (-1%) | BNB: $216 (-0.7%)

Cryptocurrency Market Overview. Source: Quantify Crypto
Cryptocurrency Market Overview. Source: Quantify Crypto

Top Crypto Headlines of the Week

Bitcoin Mining Difficulty Reached a New All-Time High: Bitcoin’s mining difficulty has soared to unprecedented levels, indicating the increasing strength of the network. This development highlights the robustness of Bitcoin amidst the struggles of its price.

Declining Bitcoin Supply on Exchanges: The percentage of BTC stored on exchanges continues to decline and has reached its lowest level in six years. This trend reduces the immediate sell pressure on Bitcoin, potentially impacting its price.

Growing Interest in Ethereum ETFs: The competition to launch a Bitcoin ETF is intensifying in the United States. However, the interest in Ether (ETH) ETFs is also on the rise, with two more companies filing applications with the SEC this week.

Bitcoin as the Antidote for the Fiat Banking System: Arthur Hayes, the founder of BitMEX, believes that Bitcoin can serve as an antidote for the flawed and corrupt fiat banking system. In a recent blog post, Hayes highlights Bitcoin’s potential role in providing an alternative financial system.

Sam Bankman-Fried’s Legal Woes Continue: Sam Bankman-Fried, the founder of FTX, has been facing legal challenges. With the trial date approaching, Bankman-Fried has complained about the lack of vegan food in prison, where he is currently being held.

XRP Erases SEC Victory Gains: Following a landmark court victory against the SEC, XRP experienced significant price gains. However, XRP has recently returned to its pre-SEC victory levels, diminishing the previous rally.

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