The last seven days had Bitcoin losing nearly 20% of its value, while Ether dropped approximately 30%. Solana and Avalanche recorded about 38% losses each. Moreover, the meme coin market witnessed a profound sell-off. Dogecoin lost 30% in the past week as Shiba Inu crashed 38% (Coinmarketcap data).
The sell-off in the cryptocurrency market showed no abating signals on Saturday. The negative actions had Bitcoin dropping 4%, while Ether saw another 7% fall amid a brutal week in the financial space. For now, the cryptocurrency space left many investors in shock.
Bitcoin, the dominant crypto by market cap, exchanged hands near $35,300. However, the token had touched lower zones at $34,042.7, translating to a 50% drop from the 2021 November ATH of $69K.
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Nevertheless, the crypto traders’ reactions to hawkish stance from Fed Reserve and regulatory rumors by the White House, plus Russia’s potential blanket ban on crypto, had Ether and new cryptos surpassing BTC’s decline.
The last seven days had Bitcoin dropping nearly 20% of its price. Meanwhile, Ethereum lost 30% during the rime. DeFi-play AVAX and SOL lost approximately 38% each. Furthermore, the altcoin market suffered remarkably, with Dogecoin losing 30 in a week, while SHIB wavers 38% low within the last seven days (Coinmarketcap data).
Leigh Drogen of Starkiller Capital told Bloomberg TV that cryptocurrency is a risk asset. He stated that the market is riskier now as the crypto industry capitalization relies on projects like Solana and Ethereum, which are technologies with presumptions of growing in the future.
RBC Capital Markets’ Amy Wu Silverman believes market participants need to watch the ETH to BTC ratio. Ether has plummeted to its lowest mark relative to BTC since October. That comes after the alt hovered beyond 0.07 for multiple months. Recently, the ratio stood at 0.069.
On Saturday, Wu Silverman wrote that there’s no hiding place as the overall marketplace records losses. She believes 0.055 is the next mark to consider as the ETH-BTC ratio hovers in the 0.055 to 0.88 range. Silverman wrote, “0.55 must hold”. For now, analysts believe crypto assets will continue dipping before rising higher.
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