Cryptos Slide After A Brilliant Rally

Cryptocurrencies shed more than a percent in the past 24 hours after a mega rally a day earlier that lifted Bitcoin to one and a half-year high.

Hopes of massive institutional funding into the crypto space had gained momentum in the past weeks as several asset managers lined up with applications for Bitcoin Spot ETFs. Hopes of an imminent regulatory approval for the same fueled a bullish momentum in the crypto space, lifting crypto market capitalization to $1.28 trillion and Bitcoin to $35,150 a day earlier.

Overall crypto market capitalization has now dropped 1.4 percent to $1.26 trillion while the 24-hour trading volume dropped 33 percent to $60 billion.

Sentiment also remains subdued as markets wait for the outcome of monetary policy reviews by Bank of Canada, European Central Bank, Bank of Japan, Federal Reserve as well as the Bank of England over the course of the week. Anxiety ahead of the release of key data including GDP and PCE-based inflation from the U.S. towards the end of the week also lingered. Fed Chair Jerome Powell’s speech later in the day is also keenly anticipated for monetary policy cues.

The Dollar Index, a measure of the Dollar’s strength against a basket of 6 currencies gained 0.14 percent in the past 24 hours, rising to 106.42.

Bitcoin (BTC) is trading at $34,472.06, having edged up 0.2 percent in the past 24 hours. Weekly gains still exceed 21 percent and year-to-date gains are more than 107 percent.

Ethereum’s (ETH) recorded an overnight decline of more than 2 percent, falling to $1,789.73. Ether is also holding on to weekly gains of 13 percent and year-to-date gains of 49 percent.

Bitcoin’s crypto market dominance increased to 53.3 percent, from 52.9 percent a day earlier. Ethereum saw its share of the crypto market capitalization fall to 17.1 percent, from 17.3 percent a day earlier. Stablecoins are more or less steady at 9.87 percent market dominance. Residual altcoins which occupied 20 percent of the crypto market a day earlier now command only 19.7 percent of the overall crypto market.

Among the top-10 non-stablecoin cryptocurrencies, Chainlink (LINK) topped overnight gains with a surge of 7.9 percent and weekly gains with an addition exceeding 49 percent. LINK gained amidst reports of its association with telecom giant Vodafone. The brilliant rally helped LINK enter the top-10 league, relegating Polygon (MATIC) to the 11th position. Solana (SOL) continued to top year-to-date gains with an addition of more than 236 percent.

Down the crypto hierarchy, 77th ranked Pepe (PEPE) topped gains in the top-100 category with a rally that exceeded 17 percent.

58th ranked Mina (MINA) was the greatest laggard on an overnight basis with a decline of 22 percent.

PEPE topped weekly gains with a surge of 81 percent followed by MINA that added 80 percent in the past seven days.

On a year-to-date basis, 44th ranked Injective (INJ) is the best performer with an addition of more than 880 percent in 2023.

Despite all the euphoria surrounding a Bitcoin spot ETF and hopes of a potentially huge flow of institutional money into the digital assets space, more than 35 of the top-100 cryptocurrencies are trading with year-to-date losses exceeding 1 percent. Around 25 have slipped more than 10 percent in 2023 whereas 14 have declined more than 25 percent on a year-to-date basis. Leading the losses are 74th ranked Apecoin (APE) that plunged 66 percent in 2023, followed by 94th ranked Terra Classic (LUNC) that erased 59 percent and 87th ranked Huobi Token (HT) that slipped 54 percent on a year-to-date basis.

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