Bitcoin and the broader cryptocurrency market have been on a wild ride lately, with significant price swings and volatility. After hitting new all-time highs near $74,000 last week, Bitcoin experienced a sharp sell-off, plunging below $61,000 – its lowest level since early March. This 14% weekly decline reduced Bitcoin’s market cap to $1.23 trillion and dominance to just under 50%.
Despite briefly dipping under $61,000, Bitcoin staged a quick recovery on Wednesday, regaining the $63,000 level. However, the volatility resulted in nearly $600 million in trader liquidations. Major altcoins like Ethereum, Solana, Avalanche and Cardano also faced steep losses of up to 15% over 24 hours. The overall crypto market cap fell 15% in a week to around $2.28 trillion before recovering slightly.
Amid the turbulence, the SEC handed down delays on several pending Ether ETF applications. Analysts have grown bearish, with Bloomberg’s Eric Balchunas lowering approval odds to just 35% citing SEC silence. The Ether ETF filings now risk denial on May 23rd.
FTX victims issued statements ahead of Sam Bankman-Fried’s sentencing, highlighting the “irreparable harm” and “emotional/psychological toll” of his actions. One victim stated they “entrusted FTX with hard-earned savings” only to face “devastating” repercussions.
In legal battles, Apple co-founder Steve Wozniak won an appeal against YouTube over a Bitcoin giveaway scam using his likeness, potentially impacting laws protecting video platforms.
Traders urge caution on Bitcoin amid the downtrend, advising to monitor risk appetite influenced by the Fed’s looming interest rate decision. Analyst Alex Kuptsikevich stated “Bitcoin remains in a downtrend, with a series of lower lows and lower highs.”
Amidst the chaos, some altcoins like ARB, STX, TON and OP posted double-digit gains, reminding investors of crypto’s inherent volatility where fortunes can quickly change.
