Here’s a breakdown of the crypto market from last week:
Bitcoin Settles Below $100K Again: Says “Let Me Rest” 😴
Bitcoin is back to breaking hearts after slipping below the $100K mark again for the second week in a row 📉. The Bitcoin price briefly dropped to around $98,800 before staging a mild comeback after the U.S. government shutdown ended and President Trump rolled out a $2,000 tariff dividend. This move saw Bitcoin jump to $107K for a hot minute before reality hit.
The real wahala came after about $700 million worth of leveraged positions got wiped out in just 24 hours. By the end of the week, BTC slid to $95K, about 24% down from its $126K all-time high, while altcoins took an even bigger beating.
So, what’s behind all the drama?
The Federal Reserve (Fed) officials said inflation progress still “isn’t convincing.” That line alone pushed rate-cut odds down to 52%. Plus, open interest in Bitcoin futures dropped from $15 billion to $13.8 billion in just three days, showing traders are either cashing out or chilling.
And to make things more confusing, exchange-traded funds (ETFs) started bleeding again, and had whales trimming their positions despite Bitcoin investors’ switch to ETFs for tax benefits. Even traditional assets, including tech stocks and gold, looked shaky, with traders unsure which way the wind is blowing.
Still, not everything is doom and gloom. The first-ever spot XRP ETF (XRPC) launched with $58.6 million in day-one volume, keeping XRP fans hopeful for now. In short, the market’s confused. Some are panic-buying, others are panic-selling. Everyone’s waiting for clearer economic data or a fresh Fed statement before making their next move.
So for now, Bitcoin’s vibe is giving “I’m tired after a year of back-to-back highs, let me rest small.” But as every trader knows, when Bitcoin gets quiet, something big could just follow 👀.
What About Altcoins?
Well…Let’s just say they are still the same old copycats. Ethereum shed more than 5%, Solana also took a slight dive, Ripple’s XRP is in the red despite its ETF launch, and the usual altcoin cast followed suit.
For the second week, privacy tokens are the shining light:
- Zcash (ZEC) increased by over 7%
- Monero (XMR) surged by over 16%
- Decred (DCR) went up by nearly 40%
- Zano (ZANO) rose by about 20%
Note: All price details are from the last 7 days, as of the time of writing
But even many of these “hot” privacy tokens have seen their gains dip in the past week. Now, can they bounce back and sustain their two-week momentum? That’s left to be seen.
Bitfarms Breaks Up With Bitcoin: Says AI Pays Better 💔
While we’re waiting for Bitcoin to break up with its toxic love below $100K, Bitfarms, a Bitcoin mining company, announced it’s ditching its first love to chase something hotter: artificial intelligence (AI).
After losing $46 million last quarter, the company decided it’s tired of watching its profits evaporate every time electricity prices sneeze. So, instead of sweating over Bitcoin blocks, Bitfarms now wants in on the AI gold rush, and who can blame them? Apparently, Bitcoin mining tools like graphic processing units (GPUs) can do more than just mine crypto 🌚.
The new plan? Repurpose their mining sites into AI data centres, starting with an 18-megawatt site in Washington powered by Nvidia’s GPUs. Bitfarms says this will “stabilise revenue” and “leverage growing AI demand.”
Investors aren’t fully buying the story, though. The stock tanked up to 18% in one day, probably because “we’re pivoting to AI” has become the corporate version of “We want to right our wrongs.”
Still, the move makes sense. Mining is tougher than ever due to higher energy costs, shrinking rewards, and strong competition. Meanwhile, AI is printing cash like crypto did in 2021. Now, we wait and see how Bitfarms’ “data gold digging” goes.
Disclaimer: This content may cause extreme FOMO (Fear of Missing Out). Side effects of investing include sudden wealth (or, you know, the opposite 😢). Please do your own research (DYOR) or speak to your financial advisor before making any decisions.
