A lot went down over the past week in the digital asset ecosystem. Bitcoin and the collective industry shaved close to 18% in market capitalization as the total valuation dropped from $375 billion to $312 billion at press time. However, the moral was still somewhat high in the industry as a complete washout did not take place. Some of the tokens were still consolidating at a higher range, including Bitcoin, hence the situation was not extremely brutal.
According to Glassnode’s weekly update, BTC began the start of last week at a high of $11,622 to plummet all the way down to $10,343. The further decline took the asset as low as $9892 on a couple of occasions.
However, the network health remains in the positive range according to Glassnode’s analysis, and over the past week, liquidity increased by 14 points. The report added,
“Trading liquidity saw a large uptick as Bitcoin flowed onto exchanges, while transaction liquidity went up due to an increase in on-chain transactions from the beginning of the week.”
Although Liquidity witnessed an uptick, the market sentiment seemed to have taken a hard hit as the overall investment sentiment went down due to the decrease in profitability.
Altcoins faltered before BTC
The fate of all digital assets looked grim last week and against Bitcoin, most of them lost quite a bit of value. Chainlink was one of the largest losers in terms of decline losing close to 12.6%, while Litcoin lost up to 11.5% against Bitcoin.
Bitcoin’s forked compatriot, Bitcoin Cash and Bitcoin SV lost 6.2% and 4.4% respectively while Ethereum declined by 4.7%.
Surprisingly, XRP shredded only 3% of its total market cap with respect to Bitcoin. In the past, XRP has always recorded heavy downtrends during a BTC collapse but the token managed to hold its own over the past week. Additionally, the reported stated,
“As the market becomes more volatile, investors appear to be de-risking by moving from lower-cap alts back into more reliable assets such as BTC and ETH.”
Bitcoin’s recovery already on the move?
At the moment, Bitcoin seems to release off its struggles from the past 7-days, as the asset has breached above the 50-day moving average in the 1-hour chart. If BTC is able to hold a position above the 50-day MA for the current period, there is a chance Bitcoin will be able to reverse the current bearish dilemma quicker than anyone expected.