Crypto Market Takes Profits

In the wake of the release of US inflation data, Bitcoin struggles to maintain its upward trend.

On Tuesday, Bitcoin surpassed $30,500, reaching a 10-month high. Bulls made two efforts to establish a long-lasting rally, but the market did not back them. Wednesday morning saw a price drop below $30K after dropping 0.4% over the previous 24 hours.

Over the same time, the market for cryptocurrencies fell more than 1.2%, reaching $1.22 trillion. Amid worries about volatility ahead of today's US inflation data, traders are scurrying to lock in gains from the recent rise.

CoinShares reports that cryptocurrency investments increased by $57M last week, marking the third straight week of growth. $56 million more was invested in bitcoin, $0.6 million in ethereum, $0.5 million in Uniswap, and $0.4 million in polkadot.

Trading volumes for the week were low at $970M despite the optimistic market attitude. The similar pattern was seen in the worldwide BTC exchange market, where trade volumes for the week were barely 25% of what they had been on average for the whole year, according to Coinshares.

Coin News

According to Larry Lepard, CEO of Equity Management Associates, the US dollar is on the verge of a "absolute collapse" that would significantly accelerate bitcoin's rise. In his opinion, a limited supply of 21 million coins would offer Bitcoin a significant edge over gold and be crucial to its "long-term parabolic growth."

The Crypto 40, a rating of the top 40 cryptocurrency businesses in eight categories, was created by US business magazine Fortune. Ethereum replaced bitcoin as the dominant protocol.

In terms of the number of blockchain transactions, Messari found that Cardano outpaced Bitcoin and Ethereum. In terms of active addresses, Cardano trails BTC and ETH by a significant margin.