Over the past several days, the value of Bitcoin (BTC) has dropped by more than 8% and has hit a two-month low above $26,000. This drop in value coincides with a significant reversal in the recent success of memecoins. At the time of writing, Bitcoin was trading at approximately $26,700, a level that has not been seen since March 17. On Wednesday, the cryptocurrency reached a high of $28,300 following weaker-than-expected CPI data. Laurent Kssis, a crypto advisor at CEC Capital, has suggested that Bitcoin may fall below $26,000 over the weekend, but is currently well-supported. He added that there are no fundamental factors supporting Bitcoin’s value anymore, which has made traders concerned, but it feels like a short-term opportunity to increase Bitcoin holdings at these lower levels.
The liquidity of Bitcoin on Binance has experienced a substantial decline since February, as per Aubert, an analyst from Kaiko. The liquidity dropped from about $45 million to $16 million in the early days of May. This decrease in liquidity is mainly attributed to Binance discontinuing the 10-month zero-fee campaign for 13 BTC pairings, which has caused market makers to leave the platform.
What about altcoins?
Ethereum dipped 5.8% over the seven days and currently changes hands at $1,800. It’s one of lighter dips in a week where, broadly speaking, the damage was light across the market.
Cryptocurrencies that dipped more than 8% this week include Polygon (MATIC), which fell 11.5% to $0.856058, Avalanche (AVAX) dropped 11% to $15.01, Toncoin (TON) sank 11.8% to $1.85, and Internet Computer (ICP) dropped 9.2% to trade at $5.16.
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