Key facts
- Ether, Solana, and Dogecoin led a slide among major cryptocurrencies.
- Bitcoin traded around $59,514, below its 200-week moving average.
- The Japanese yen fell to a 40-year low against the U.S. dollar.
- Onchain data indicates subdued user activity and contracting transaction fees.
- Strategy may sell over $1 billion of bitcoin.
Major cryptocurrencies experienced a downturn as the Japanese yen reached a 40-year low against the U.S. dollar, increasing pressure on risk assets like bitcoin. Bitcoin was trading around $59,514, falling below its 200-week moving average, a significant long-term indicator.
Ether saw an 8.2% weekly loss, XRP dropped 7.1%, and dogecoin suffered the most among the majors with an 11.9% decline. BNB also lost 6.5%. In contrast, Solana managed to gain 3% on the day and 2.9% for the week, trading at $74. Hyperliquid's HYPE token also saw a 7% daily increase.
The primary driver for the market movement was currency fluctuations. The yen's weakening past 162 per dollar, a level not seen since 1986, bolstered the dollar globally. A stronger dollar typically makes dollar-denominated assets more expensive for international investors and can lead to capital withdrawal from riskier investments.
Onchain data from Glassnode revealed persistently soft demand. The number of active addresses, a measure of user engagement, remained in the middle of its recent range, and the value of coins transacted on the network hovered near $4.2 billion, indicating subdued activity. Transaction fees continued to contract, suggesting a lack of competition for block space.
Adding to market caution, Strategy, the largest corporate holder of bitcoin, indicated it might sell over $1 billion worth of the cryptocurrency to improve its financial standing. This potential sale, a shift from founder Michael Saylor's previous stance against selling, looms over a market already characterized by low liquidity and a lack of fresh demand, exacerbated by the strong dollar and the yen's slide.