Bitcoin edged lower over the weekend, dipping below the $41k threshold on Sunday as the broader crypto market saw renewed selling pressure. The slide extended Bitcoin’s pullback after failing to overcome resistance around $43k on Saturday.
- Bitcoin price dropped below $41k over the weekend, extending the decline from its failed run at $43k
- Total crypto market cap shed about $50 billion since Saturday’s peak
- Ethereum dipped under $2,200, while Solana and Avalanche saw significant losses over 5%
- Bitcoin’s daily trading volume fell 30% over the weekend as activity cooled off
- Open interest in Bitcoin futures dropped over 9%, signaling fading speculative interest
The flagship cryptocurrency had tried bouncing back from a significant drop last Monday that had briefly sent it to $40k. However, the latest rejection and retreat eroded previous progress, pushing Bitcoin’s market capitalization down to $805 billion.
Overall, the total crypto market cap shed around $50 billion since topping out above $1.6 trillion on Saturday. Alternative coins mirrored Bitcoin’s decline, with Ethereum sinking below $2,200 and Solana and Avalanche dropping over 5% each.
Driving recent softness is fading trading activity and speculation heading into the holidays. Bitcoin’s daily trading volumes crashed by nearly 30% over the weekend per market data. Further, exchange inflows reveal substantially fewer coins moving to trading platforms lately.
Even typically active whales eased back on transactions over the past week. Open interest in Bitcoin futures also tumbled around 10% in recent days, signaling evaporating speculative positions. The combination of declining volumes, whale activity, and open futures interest points to dimming interest with year-end approaching.
Some analysts view the latest pullback as more of a blip rather than an extended retracement. With holidays arriving amid a stretch of uneven broader macro backdrop, a period of consolidation is expected. For Bitcoin to ignite renewed momentum going into 2023, the market may need fresh catalysts in the form of increased institutional investment flows or clarity around regulation and ETFs.