Bitcoin's Rollercoaster Ride

Martin Walker
Sep 4, 2023 at 12:29 pm

Despite the considerable turbulence Bitcoin experienced last week, it has once again come to a standstill around the familiar price point of approximately $26,000.

As for most other alternative cryptocurrencies today, they appear to be relatively tranquil, with exceptions including Rocket Pool, Synthetix, and Stellar, all of which are witnessing substantial double-digit gains.

BTC Returns to $26K

The leading digital currency had remained relatively stagnant around the $26,000 mark for an extended period. However, this uneventful status quo was disrupted last Tuesday when Grayscale's legal victory over the US Securities and Exchange Commission sent shockwaves throughout the crypto world.

Bitcoin, energized by the prospects of transforming GBTC into a spot BTC ETF, surged by over $2,000 in a matter of hours, reaching a multi-week peak above $28,000.

Just as the crypto community anticipated the SEC's downfall, the regulatory agency made a somewhat expected maneuver by postponing its decision on all spot BTC ETF applications for an additional 45 days. This, coupled with the fading excitement surrounding Grayscale's triumph, triggered a significant price retracement.

Bitcoin witnessed a drop of nearly $3,000 over the course of two days, hitting an 11-week low at $25,350. Nevertheless, it managed to rebound, recovering several hundred dollars, and has since been trading at approximately $26,000, resembling its position from seven days ago.

Its market capitalization has steadied at $505 billion, maintaining a dominant position among alternative cryptocurrencies at 48.4%.

BTCUSD. Source: TradingViewBTCUSD. Source: TradingView  

XLM on the Ascendancy

Most alternative cryptocurrencies have registered modest gains in the past 24 hours. Ethereum, Binance Coin, Ripple, Cardano, Solana, Tron, TONCOIN, Polkadot, Polygon, and Litecoin are all showing marginal green gains, with SOL experiencing the most significant rise of 2%.

In contrast, the two leading meme coins, Dogecoin and Shiba Inu, are experiencing slight losses. LEO, HBAR, and MKR have suffered the most significant declines among larger-cap alternative cryptocurrencies.

On the other hand, Stellar's XLM has surged by approximately 10% and is currently trading well above $0.12. Notably, Rocket Pool and Synthetix are also posting impressive double-digit gains.

The overall cryptocurrency market capitalization has seen a modest increase of just under $10 billion in a single day, hovering slightly above $1.050 trillion on CoinMarketCap.

Cryptocurrency Market Overview. Source: Quantify CryptoCryptocurrency Market Overview. Source: Quantify Crypto  

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