Another Volatile Weekend Takes More Than USD 1,000 from Bitcoin
After starting this past weekend above the USD 12,000 level, the most popular cryptocurrency, bitcoin, enters the new week at the USD 11,000 level.
At pixel time (05:59 UTC), bitcoin trades at c. USD 11,098 after rebounding from USD 10,800 and is down by 7.53% in the past 24 hours but still up by almost 3% in the past week and by almost 30% in June.
Bitcoin price chart:
Also, this time, bitcoin is the worst performer among the top 10 coins by market capitalization. Ethereum is down by 6.85%, other major coins lost up to 7% of their value in the past 24 hours.
However, some of the smaller capitalization coins from the top 100 such as Holo (+17%) and BitTorrent (+8%) are in green, while the total market capitalization is up by more than 4%, to almost USD 323 billion. At the same time, bitcoin dominance, or the percentage of the total market capitalization, decreased slightly below 62%.
This past weekend was against a recent trend, as surges in weekend activity since the beginning of May account for about 40% of bitcoin’s price gains this year, Bloomberg data show. While no one knows what is the cause for this, some speculate that it might be due to the news cycle, as crypto traders could be trying to get ahead of the news as many companies choose Mondays for announcements. Also, investors might spend Saturday or Sunday discussing any news items and then going to trade the underlying tokens, according to Bloomberg.
“For one, this is natural for any kind of asset that has fixed supply but fluctuating demand, particularly one like bitcoin that’s early on in its life cycle,” Spencer Bogart, Blockchain Capital general partner, said in a separete interview with Bloomberg.