WEEKLY ANALYSIS - Crypto Market Suffers Sudden Price Crash Following Stark Warning

Bitcoin, Ethereum, and XRP among those affected by sudden price drop.

A sharp drop in the prices of Bitcoin and other major cryptocurrencies, such as Ethereum and XRP, occurred this week after a serious warning about the crypto market. The ongoing legal dispute between Grayscale and US regulators has affected crypto prices, while traders are waiting for macroeconomic signals that will be released later this week.

Bitcoin had its worst weekly performance since the FTX crash in November 2022. This could be due to a massive sell-off of tokens by traders motivated by unrelated factors such as the uncertainty in the Grayscale versus US SEC case for a Bitcoin ETF, SpaceX devaluing their Bitcoin reserves, and China's Evergrande group filing for bankruptcy. Today, the largest crypto token continued to face selling pressure and fell further but managed to stay just above $26,000. At the time of writing, Bitcoin was down by 0.09% to $26,120.13 with a 24-hour trading volume of $9.12 billion. It is currently ranked number 1 on Coinmarketcap based on market cap, with a market dominance of 48.01%, down by 0.12% over the last 24 hours.

Meanwhile, Ethereum has managed to keep a position above $1,600 despite losing over 9% over the course of the week. At the time of writing, Ethereum was up by 0.83% to $1,682.59 from the previous day with a 24-hour trading volume of $3.96 billion.

All other top crypto tokens have been trading lower over the last 7 days. The only gainers are THORChain (RUNE), which gained over 20%, and Kaspa (KAS), which gained as much as 2% each. Among the losers, ApeCoin (APE) lost almost 26%, while the price of PEPE declined significantly by 23% over the past week. XRP recorded a loss of -16.3%, while Solana and Shiba Inu lost 20% each and Dogecoin was down by 16%.

The cryptocurrency market cap remained stable at around $1.06 trillion in the last day, with a slight increase of 0.4%. However, the market saw a significant decline in trading activity, as the total volume of transactions fell by 8.8% to $22.04 billion.