Bitcoin, the leading cryptocurrency failed to rally above $20K in Monday’s trading session amid weak sentiments, and a rallying dollar.
The lack of interest in risk assets was caused by depressing financial news from markets and among cryptocurrency traders.
The prior week, when the US Federal Reserve’s actions caused it to fall to a three-month low at $18.1K, Bitcoin had substantially less volatility.
Since the Federal Reserve raised interest rates to combat sky-high inflation over the course of the year, cryptocurrency investors’ appetite has undoubtedly decreased.
This year, the U.S. Dollar Index, which compares the dollar to a basket of foreign currencies, has increased by almost 17% as investors ignore risky assets for the safe haven currency.
Additionally, given the present price levels and massive outflows from miner wallets, Bitcoin (BTC) miners continue to be under pressure.
Glassnode, an on-chain analytics company, reports that in September, monthly miner revenues reached a high of 8,000 BTC.
While this has now decreased, adjusted for fluctuations in the price of BTC, miners continue to sell more than they make on a rolling monthly basis.
Although miners had lost a total of 3,455 BTC during the previous 30 days as of September 29, the last day for which comprehensive data is available, it still marked a one-month low in exchange transactions, according to Glassnode.
However, BTC now holds a 39.5% market share, up around 2% in a week. Even 40% was reached early this week.
As a result of yesterday’s failure to register significant gains, alternative coins are currently behaving somewhat more calmly than usual.
Continued post-merge difficulties for Ethereum: Just over two weeks ago, when the switch to PoS was complete, it was trading at $1,600, but in the days that followed, it crashed to $1,200. Since then, it has made some gains, but it is still unable to surpass $1.3K.
