$300B Wiped From Crypto Markets in Days as BTC Tanks Below $110K After Powell Speech: Your Weekly Recap

It wasn’t a particularly good week for bitcoin and the broader crypto market, as almost all charts are deep in the red on a 7-day scale.

It all started at the end of the previous business week after BTC had jumped to $118,000 on Thursday morning following the Fed’s expected rate cut. However, the asset’s rally ran its course prematurely, and it started to lose value gradually, dropping to $116,000 by Friday.

The weekend went as anticipated, little to no action, but then came the familiar Monday drop. Bitcoin went from just over $115,500 to $112,000, wiping out billions of dollars worth of leveraged positions. The bulls tried to halt the freefall, but their best effort took BTC to $114,000 briefly on Tuesday.

The bears quickly reemerged and initiated another couple of consecutive leg downs. The culmination took place earlier on Friday when BTC plunged to $108,600. This became its lowest price tag since the start of the month.

Perhaps the most evident reason behind this collapse is the latest comments coming from US Fed Chair Jerome Powell. The head of the central bank sent some mixed signals regarding the inflation levels, which were interpreted as a warning sign for riskier assets like crypto.

Although BTC has recovered some ground since its local low, it’s still beneath $110,000 as of press time. Its 6.2% weekly decline, though, seems negligible compared to massive double-digit price drops from the likes of ETH, DOGE, SOL, ADA, LINK, AVAX, and especially HYPE, which is down by over 25% following the rise of a new competitor. But more on that later.

These price collapses are best highlighted by the total market cap’s plunge, which went from over $4.150 trillion at this time last Friday to under $3.850 trillion as of now.

Market Data

Market Cap: $3.840T | 24H Vol: $238B | BTC Dominance: 56.8%

BTC: $109,200 (-6.2%) | ETH: $3,920 (-13%) | XRP: $2.75 (-9%)

This Week’s Crypto Headlines You Can’t Miss

Tether Seeks $20B Funding at $500 Billion Valuation, Dwarfing Circle. The company behind the world’s largest stablecoin reaffirmed its dominance in the crypto market by securing somewhere between $15 and $20 billion, according to a recent report, for a 3% stake. This means that its valuation is roughly $500 billion, which is a lot more than its closest rival, Circle ($30 billion).

Fear and Greed Index Hits 5-Month Low as BTC Drops to $109K – Warning or Buying Opportunity? After losing roughly ten grand since last Thursday’s peak, the sentiment has expectedly turned grim. The popular Fear and Greed Index plunged to its lowest level in roughly 5 months as a result.

SBF’s ‘gm’ Tweet Sparks Speculation of Comeback Amidst New Solana-Based Perp Dex. FTX’s notorious former leader made a simple but loud comeback to social media this week, posting a minor “gm” message on X. It had a dramatic impact on FTT’s price and also led to some speculations about a Solana-based perp dex.

The Bitcoin Bear Market is Here… or at Least That’s What Peter Schiff Thinks. BTC’s substantial correction gave perma-bears like Peter Schiff wings to make bold assumptions. The bitcoin critic believes this is not a minor retracement but the start of a bear market.

Whale Turns $300K Into $7M Profit on ASTER. As promised before, here’s some news about Hyperliquid’s competitor, which has reportedly surpassed it in terms of volumes. The meteoric rise of ASTER and its native token helped one whale turn a $300,000 investment into a $7 million fortune in just weeks.

Analysts Predict Massive ‘Uptober’ Rally Despite This Week’s Market Rout. Let’s end the news portion with a more promising prediction in such dire times. Several crypto analysts outlined big bullish projections for October (often referred to as ‘Uptober’) that include a price surge to a new all-time high.

Charts

This week, we have a chart analysis of Ethereum, Ripple, Cardano, Binance Coin, and Hyperliquid – click here for the complete price analysis.