Cryptocurrency Market Update: XRP and DOGE Surge While Bitcoin Falls Below $58K
The cryptocurrency market has been experiencing some interesting movements lately, with major tokens like bitcoin and ether showing little change. However, XRP and dogecoin have been notable exceptions, with XRP’s increase being linked to Grayscale’s new fund.
Bitcoin, the leading cryptocurrency, has added more than 6% this week, putting it on track for its first weekly gain in three weeks. Despite this positive trend, there has been a noticeable decrease in transactions over $100,000, with a 33.6% drop for bitcoin and a 72.5% drop for ethereum since their peaks earlier in the year.
Bitcoin and other major tokens experienced slight declines over the past 24 hours, with BTC, ether, Solana’s SOL, BNB Chain’s BNB, and Cardano’s ADA all losing just under 1%. The only major tokens that showed significant gains were XRP and dogecoin, climbing 5% and 4.5% respectively. The broad-based CoinDesk 20 index, which tracks the largest tokens by market capitalization, rose by 0.85%.
XRP’s surge began on Thursday after investment fund Grayscale launched a professional fund that holds the token in the U.S. On the other hand, there was no apparent catalyst for dogecoin’s increase.
Despite the lack of movement over the past 24 hours, bitcoin has seen a more than 6% increase this week, making it the biggest one-week gain since the week ended on August 25th, when it rose by 10%.
Santiment, an on-chain analysis tool, highlighted a steep drop in activity by whales – large holders of specific cryptocurrencies – over the past month. This decrease indicates that influential market participants are awaiting clear signals before deploying large amounts of capital. Bitcoin transfers of over $100,000 have fallen by 33.6% since their peak in March and April, while ether has experienced a 72.5% drop since its peak in April.
According to Santiment, the decrease in whale activity is not necessarily a bearish signal. Whales can be equally active during both bull and bear markets, but this decline suggests that key stakeholders are biding their time as they wait for the right moment to make their next moves during periods of extreme crowd greed or fear.
The firm also noted that sentiment patterns indicate that a return to $70K for bitcoin would likely result in major crowd FOMO (fear of missing out), while a drop to $45K would likely lead to major FUD (fear, uncertainty, and doubt) among investors.
Subheadings:
XRP and DOGE Surge
XRP and dogecoin have been standout performers in the cryptocurrency market, with XRP’s surge attributed to Grayscale’s new fund and dogecoin’s increase lacking a clear catalyst.
Bitcoin’s Weekly Gain
Bitcoin has seen a more than 6% increase this week, putting it on track for its biggest one-week gain in recent months, despite slight declines in the past 24 hours.
Whale Activity Decline
Santiment’s analysis revealed a significant drop in whale activity for both bitcoin and ether, signaling a cautious approach by key stakeholders in the cryptocurrency market.
In conclusion, the cryptocurrency market continues to show signs of volatility and uncertainty, with some tokens like XRP and dogecoin outperforming others like bitcoin and ether. Investors should remain vigilant and keep an eye on key indicators like whale activity to navigate the ever-changing landscape of digital assets.