The crypto market was ablaze with red hues in the wee hours of Tuesday, as Bitcoin took a nosedive of over 6%. Its value plummeted to a low of 66K before finding stability near 67K, all thanks to a surge in demand for the safe haven currency. Meanwhile, the US dollar index soared to a record-breaking 105 points against major fiat currencies, marking a four-week gain of 2.58%. This spike in the dollar’s strength has caused a ripple effect, making currency-based assets like gold and bitcoin pricier and potentially dampening demand for them.
Behold the power of the almighty dollar, for its unwavering strength has been known to tighten the financial reins across the globe, causing investors to shy away from risky ventures. This was evident in the recent dip in the global crypto market, which saw a decrease of 4.66% and a valuation of $2.5 trillion.
While Bitcoin’s dominance may have increased by a mere 0.13%, the aftermath of this financial turmoil was felt by over 120,000 traders who were liquidated, resulting in a staggering loss of $394 million in just one day.
Amidst the recent market dip, the highly anticipated Bitcoin exchange-traded funds (ETFs) saw a surprising turn of events. A total of $86 million was pulled out, breaking a four-day streak of positive inflows. However, amidst the chaos, two funds stood out with impressive net inflows – BlackRock’s ETF raking in a whopping $165.9 million and Fidelity following closely with $44 million.
Despite Grayscale’s GBTC seeing a massive $302 million in withdrawals, the inflows were no match and the total daily outflows for all funds skyrocketed to a staggering $85.7 million.
Memecoin continues to soar to new heights thanks to the launch of innovative tokens such as Book of Meme (BOME) and ‘Dogwifhat’ (WIF) on the Solana platform, along with the enduring popularity of classic meme coins like Pepe. But the real star of the show is the latest addition to the meme coin family – DEGEN, a native token that skyrocketed by a staggering 2,800% in just one month.
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As we gear up for a jam-packed week of economic data, including the highly anticipated unemployment rate and nonfarm payrolls report, all eyes are on the ever-fluctuating Bitcoin market. History has shown us that this digital currency is no stranger to volatility, and with the quadrennial mining reward halving just around the corner, things are about to get even more intense.