Bitcoin price fell back below $20,000 after breaching that support line overnight, while Ethereum led the losses in the crypto top 10 by market capitalization, which were all trading lower. At the time of writing, BTC is changing hands at $18,747.
BTC/USD 4-hour chart | Source: TradingView
Bitcoin price back below US$20,000 while Ether leads losses in crypto top 10
Bitcoin fell to $19,414 but saw a brief rally take it above $20,000. The boost was shortlived, however, with the largest cryptocurrency by market cap returning to its lows as the weekend drew to a close. Bitcoin was recently trading at about $19,450, down more than 2.5% from Saturday and near its lowest point in 10 days. Early in the week, the largest crypto in market value began sinking from a perch above $22,000 after a disappointing Consumer Price Index (CPI) indicated that the U.S. central bank still had work before it to tame inflation. Investors will be closely eyeing the Federal Open Market Committee’s (FOMC) decision on a fresh interest rate hike this week (UTC), although a minimum 75 basis point increase is widely expected – a continuation of the Fed’s monetary hawkishness.
Ethereum was down 22% for the week, and Bitcoin was down 10%. The declines echo a similarly down week in which overall economic metrics—ranging from the Consumer Price Index to traditional market indicators Nasdaq and the S&P 500—also fell.
Ethereum Classic (ETC), the original network from which ETH was forked, was trading 14% lower at US$29.61. ETH has fallen 24% in the last seven days, while ETC has dropped 22.8% in a sell-off following the long-awaited “Merge,” which occurred last Thursday. The two networks had made significant price gains in the run-up to the event but have since seen much of those gains evaporate.
Most other major cryptos spent Sunday in dark red with OP recently off 17% and RVN and YGG each down roughly 15%. KNC, the token of the Kyber Network, was down roughly 25% more than 8 hours after a discussion on Twitter about an exploit. The crypto Fear & Greed index remains firmly in the fear territory.
Market analysts at CME Group predicted a nearly 40% chance of a 100 basis-point hike immediately after higher-than-expected August inflation data was released last week, but have since lowered that likelihood to 18%. U.S. Federal Reserve officials have repeatedly affirmed their commitment in recent months to raising interest rates until inflation is brought under control. However, the World Bank warned last week the Fed’s effort to tackle inflation in this way risked tipping the world economy into a recession by 2023.
The overall cryptocurrency market cap stands at $971 trillion, and Bitcoin’s dominance rate is 39.4%.