The cryptocurrency market experienced a turbulent week, with a significant decrease from its all-time high of over $73,000 to around $64,800, marking an approximately 6% drop from the previous week.
This downturn was mainly due to profit-taking activities and selling pressure after reaching record highs. However, Bitcoin managed to make a notable recovery during the week, driven by the Federal Reserve’s dovish statements and the anticipation of potential rate cuts by the end of the year, boosting high-risk assets like Bitcoin.
There was also a slowdown in the Exchange-Traded Fund (ETF) sector, evident in the roughly $800 million withdrawal from Bitcoin ETFs in the last four days.
This shift contrasts with the robust inflows seen since January 10, when 10 Bitcoin ETFs were approved. Notably, significant outflows from Grayscale’s Bitcoin Trust have fueled bearish market sentiments.
In related news, the sentencing of Sam Bankman-Fried, the ex-CEO of FTX, is forthcoming.
Bankman-Fried, convicted of fraud and market manipulation, awaits a potentially long prison term. The debate over his sentencing is heated, with the defense recommending a 6.5-year term, while prosecutors argue for a sterner sentence to serve as a deterrent.
