Imagine gearing up for a wild rollercoaster ride, only to find the cart stays oddly stable after a dramatic plunge. That’s the recent tale of Bitcoin (BTC-USD) and Ethereum (ETH-USD). Despite a massive $400 million liquidation last Friday, these crypto giants barely budged. Let’s delve into the events and what might be ahead this week.
The $400M Liquidation Plunge
Last Friday, the crypto market faced a $400 million liquidation triggered by stronger-than-expected U.S. jobs data. The non-farm payrolls (NFP) report showed 275,000 new jobs, well above the anticipated 185,000. This surprise sent shockwaves through the market, causing Bitcoin to drop from $71,000 to $69,000 and dragging down alternative tokens and meme stocks like GameStop (NYSE:GME). Dogecoin (DOGE-USD) and Shiba Inu (SHIB-USD) also took hits, losing up to 10%.
Weekend Stability: A Brief Respite
Despite Friday’s chaos, Bitcoin and Ether remained relatively stable over the weekend. BTC hovered around $69,400, and ETH traded near $3,660. Trading volumes and open interest in futures contracts saw notable declines, with traders significantly reducing their positions. Open interest dropped from $99 billion to $60 billion, and volumes fell by 10% in 24 hours, according to Coinglass.
Volatility on the Horizon
Buckle up, because this week promises more action. Analysts from Presto Research predict increased market volatility driven by several key events. The Consumer Price Index (CPI) release on Wednesday, the Federal Open Market Committee (FOMC) meeting on Thursday, and a speech by Janet Yellen on Friday are expected to be major catalysts. These events could dramatically impact market sentiment, leading to another rollercoaster week for crypto assets.
Is Bitcoin a Buy?
According to TipRanks’ Bitcoin Technical Analysis, the indicator is flashing a Buy.
Final Thoughts: Enjoying the Ride
In the end, the crypto market is like a rollercoaster—full of ups, downs, and unexpected turns. As we brace for another potentially volatile week, keep your seatbelt fastened and enjoy the ride. The only certainty in the crypto world is change, and those who stay informed through TipRanks’ tools are best positioned to weather the storm.
