Bitcoin faced rejection at $85,000 this week after a volatile trading period marked by inflation concerns and geopolitical tensions. The largest cryptocurrency dropped below $80,000 earlier in the week following the release of CPI and PPI data, before recovering to $82,800 on Friday and Saturday. A brief flash crash occurred on Saturday evening, but the asset quickly rebounded.
Bitcoin rallied to $83,000 on Sunday and Monday, then jumped to nearly $85,000 on Wednesday—its highest level in two weeks. However, bears reasserted control, and the asset declined by over $4,000 within days. As of Friday, BTC struggled to hold above $81,000.
Oil prices surged above $100 per barrel following statements about potential military action against Iran, adding to macroeconomic uncertainty. The broader market also faced headwinds, with most major altcoins including Ethereum, XRP, Solana, Tron, and Dogecoin declining up to 2% on the week.
The cryptocurrency market has shifted focus to the Federal Reserve's upcoming meeting next week, where consensus expectations suggest the central bank will maintain current interest rates.
Weekly Market Snapshot
Market Cap: $2.840 trillion | 24-Hour Volume: $68 billion | Bitcoin Dominance: 57.5%
Key Prices: Bitcoin $81,340 (-0.37%) | Ethereum $2,390 (-2.3%) | XRP $1.31 (-1.5%)
Industry Developments
Ethereum developers delayed the Glamsterdam upgrade on the Hoodi testnet to investigate EIP-8037 interactions with existing smart contracts, with no new date set.
Large Bitcoin holders accumulated nearly 89,000 BTC over the past month despite price weakness. Additionally, corporate buyers Strive and Strategy continued accumulating Bitcoin, with Strive acquiring 1,223 BTC and Strategy acquiring 267 BTC, bringing its total holdings to an all-time high of 848,527 units.
A profitability indicator for Bitcoin investors fell near November 2022 levels despite the asset's recovery from lows near $64,000 in mid-August, suggesting a significant gap between current price levels and investor cost bases.
