Bitcoin Maintains $26K Support During Weekend; XRP and LTC Defy Market Direction
The previous week within the realm of cryptocurrency markets witnessed a substantial long liquidation event, reminiscent of the scale observed during FTX's collapse. The lack of significant buying pressure over recent days further accentuated this phenomenon.
Throughout the weekend, major cryptocurrencies exhibited a relatively stable performance, while alternative tokens demonstrated subdued price fluctuations. This trend emerged as the aftermath of one of the most substantial liquidation events in recent months, signifying a sense of stabilization across the markets.
As the Asian afternoon hours rolled on, the price of Bitcoin (BTC) maintained its position above the $26,000 mark, while Ethereum (ETH) exhibited minimal changes from its value on Sunday, which stood at $1,670. In contrast, XRP (XRP) experienced a minor decline of about 2%, while Litecoin (LTC) displayed a modest increase of 2%. Remarkably, XRP and LTC emerged as the exceptions among major cryptocurrencies, defying the otherwise flat market trend.
Among the cryptocurrencies, the meme coin Shiba Inu (SHIB) encountered a 2% decline. This decline extended its losses to over 21% within the past week, following the problematic launch of its Ethereum layer 2 network, Shibarium. The launch witnessed disruptions in transactions shortly after its initiation last Wednesday, with over $1.7 million worth of tokens trapped in a bridge due to a code-related bug.
On the flip side, some alternative coins experienced gains. Optimism (OP) and Rollbit Coin (RLB) notably saw increases in value, propelled by heightened user engagement. RLB, in particular, surged by 18% within the last 24 hours, extending a multiweek upward trend that reflects continuous usage of the protocol.
Bitcoin investors are capitalizing on the current asset pricing, which is perceived as being discounted relative to its underlying fundamentals. Michael Silberberg, the Head of Investor Relations at AltTab Capital, emphasized this strategy. He noted that despite increased Bitcoin futures trading, the market exhibited two-way accumulation as it moved sideways within thin liquidity conditions. This signified a scenario where numerous traders were placing bets on the potential movements of Bitcoin's price.
Silberberg further elucidated, "In spite of the recent drop, we observed net inflows over the past week as long-term investors, including ourselves, identified the discounted prices as an opportunity to accumulate more Bitcoin."