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▲ Bitcoin (BTC)
While Bitcoin (BTC) was engaged in a fierce battle over the $80,000 mark, the broader cryptocurrency industry was hit by a series of major negative developments and significant corporate issues. After the U.S. Federal Reserve and the European Central Bank froze their benchmark interest rates, the market briefly rebounded, but investor sentiment was shaken again by a combination of geopolitical uncertainties, deteriorating performance of major companies, and news of layoffs at large exchanges.
According to crypto media outlet CryptoPotato on May 8, Bitcoin briefly dropped below $75,000 after the third Federal Open Market Committee meeting of the year on April 29, then quickly rebounded. It then showed a stable trend over the weekend and successfully defended its price even after news that the U.S. rejected two peace proposals from Iran.
Bitcoin surpassed $80,000 for the first time in about three months on Monday morning. However, it fell below $78,400 after confusing reports emerged that Iran attacked a U.S. Navy vessel in the Strait of Hormuz. With the report soon denied, Bitcoin recovered to $80,800 and continued its upward trend.
The rally peaked at $82,800 on Wednesday. This price is the highest level since late January, about $8,000 higher than the low point where it fell below $75,000 the previous Wednesday. However, several analysts warned that this rally might not be sustainable, and Bitcoin lost its $80,000 support level again over Thursday and Friday. As per the original text, Bitcoin traded just below $80,000 but maintained a slight upward trend on a weekly basis.
Among altcoins, Zcash (ZEC) showed the most prominent rise, gaining over 60% on a weekly basis. ONDO rose 48%, and WLFI rose 32%. According to market data provided by CryptoPotato, the total cryptocurrency market capitalization was $2.73 trillion, 24-hour trading volume was $103 billion, and Bitcoin's market dominance was 58.4%. Bitcoin gained 1.3% weekly to $79,600, Ethereum (ETH) fell 1.8% to $2,270, and XRP dropped 0.8% to $1.39.
Corporate news also increased market volatility. U.S. banking giant Morgan Stanley is reportedly planning to introduce digital asset trading on its E*Trade platform. Morgan Stanley aims to prioritize Bitcoin, Ethereum, and Solana (SOL) trading, leveraging lower costs compared to competitors.
Strategy recorded a net loss of over $12.5 billion in its Q1 earnings. CryptoPotato reported that most of this loss came from $14.5 billion in unrealized losses due to Bitcoin's poor price performance. Strategy, led by Saylor, did not announce any separate Bitcoin purchases last week.
Coinbase, the largest cryptocurrency exchange in the U.S., reduced its workforce by approximately 14%. Coinbase stated its goal to transition into a more agile, faster, and AI-driven company. With other crypto firms like Crypto.com and Gemini showing similar trends, Coinbase's layoffs highlighted the industry's renewed focus on cost-cutting.
Another major issue highlighted was Bullish's plan to acquire Equiniti. Cryptocurrency exchange Bullish agreed to acquire global transfer agent Equiniti for $4.2 billion. The legal battle between World Liberty Financial, linked to the Trump side, and Tron founder Justin Sun also escalated. As World Liberty Financial filed a counterclaim, Sun countered that the lawsuit was “baseless.”
Bitcoin's $80,000 struggle, Strategy's massive losses, Coinbase's layoffs, Bullish's $4.2 billion acquisition, and the legal clash between World Liberty Financial and Justin Sun showed that the cryptocurrency market entered a much more complex phase than a simple price rebound over the week.
*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*
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