Welcome to HODL FM, as we dive into this week’s perfomance of the largest cryptocurrency in the world.
Here is what happened to Bitcoin this week:
- Bitcoin price change: Bitcoin dropped by 17.65% from $66,500 K to $55,000 over the last seven days.
- Market capitalization: Bitcoin market capitalization is at $1,090,103,739,429.
- Top performing Bitcoin altcoins: CATS•IN•THE•SATS (CATS) and SATOSHI•RUNE•TITAN (Runes) TITAN led with the Bitcoin Runes ecosystem with mild gains over the week.
- Bitcoin ETF Inflows and Outflows: Spot Bitcoin ETF recorded $563.7 million total outflows.
More: Bitcoin Rollups Face Sustainability Issues, Vitalik Offers Solutions
Bitcoin’s $53K nosedive bounces back just enough for a sigh of relief
Bitcoin price faced a brutal sell-off this week on August 5. The sell-off was so 'mild' that after casually dipping below $60,000, the world's favorite cryptocurrency decided to go all-in and nosedive from $58,350 to $52,500 in just two hours. It's like Bitcoin saw the edge and thought, "Why not?"
Bitcoin lastly traded around $52,000 in February, shortly before the price rallied following the approval of spot Bitcoin ETFs in the U.S. Meanwhile, the cryptocurrency has regained ground and bounced back by 10% to $55,000.
Bitcoin Trading Volume Rockets to Post-Halving ATH
With everyone dumping or swooping in to grab the $50,000 bargain, trading volumes came out to flex.
Bitcoin trading volumes stood their ground amidst this week’s market turmoil and registered a new all-time high since the previous halving event.
These high volumes can be attributed to increased activity in the face of the sell-off. The fear and greed index, which measures market behavior in relation to emotions, indicates that the market is already in extreme fear.
As such, a large number of participants might have chosen to sell their holdings, and another still large segment of the market took advantage of the discounted BTC trading at the $50,000 range to fill their bags. As a result, the total trading volume of Bitcoin across major cryptocurrency exchanges surpassed $1.14 billion on August 6, 2024.
Bitcoin Loves a Comeback Story
The recent sell-off is Serving 2016 pre-Bull Vibes. Historically, dramatic nosedives like the one we saw this week are often followed by jaw-dropping bounce-backs.
Take the March 12, 2020 plunge when Bitcoin took a drastic 39.63% cliff dive, only to rebound like a caffeinated kangaroo, leaping over 100% in only a few months.
During Bitcoin’s third-cycle of halving on July 9, 2016, the price was $650. Post the halving-event, the price retreated by 27% to a $474 low in one month before it rocketed to $20,000 the following year.
Related: Crypto Market Records $500 Billion Sell Off In 3 Days: Is Winter Coming?
Almost similar, Bitcoin’s decline this week is 26% from the $64,962 post halving price.However, despite this assessment providing a bullish perspective for Bitcoin, there are chances that the price could drop lower before charging back.
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