Bitcoin Dips Below $63,000 as Relief Rally Falters
Bitcoin’s brief Sunday morning recovery proved short-lived, with the cryptocurrency falling back below the $63,000 mark on Monday and touching $62,200 for the second time in recent days.
Larger-cap altcoins have mirrored Bitcoin’s decline. Ethereum has slipped below $1,850, while XRP is approaching a familiar support level.
The previous trading week began on a more optimistic note, with Bitcoin holding steady above $64,000 and reaching $65,600 on multiple occasions. However, a second rejection at that level proved significant, pushing the cryptocurrency below $62,800 just ahead of the Federal Open Market Committee (FOMC) meeting.
Bitcoin’s volatility increased in the hours surrounding the FOMC announcement, where the Federal Reserve opted to keep interest rates unchanged despite speculation of a potential hike. On Friday morning, BTC experienced another surge, reaching $65,400. However, this level attracted strong selling pressure from bears, leading to a sharp downturn.
In the subsequent hours, Bitcoin shed approximately $3,000, falling to $62,400. It managed a rebound to $63,000 on Saturday, but dipped again to $62,200 later that day. A relief rally on Sunday morning, spurred by news of a de-escalation in US-Iran tensions and the potential reopening of the Strait of Hormuz, saw Bitcoin stall at $63,700.
Monday’s trading session proved unfavorable for bulls, driving the cryptocurrency down to $62,200 once more. While this level has so far halted the steepest declines, Bitcoin remains down over 4% for the week. Its market capitalization has fallen to $1.250 trillion, with its dominance over altcoins dropping below 56.5%, according to CoinGecko data.
Ethereum encountered resistance at $1,980 during a July rally and is now trading below $1,850 following another minor daily decrease. XRP is struggling to maintain its position above $1.05, a level analysts have identified as a critical “battlefield.” Should XRP hold this support, analysts suggest it could still see a significant rebound.
Other cryptocurrencies, including Solana (SOL), Dogecoin (DOGE), Rain (RAIN), Cardano (ADA), and Monero (XMR), are also trading in negative territory. Binance Coin (BNB) and Hype (HYPE) have seen only marginal gains. Pi Network’s PI token had an impressive weekend, posting gains of 5-6% even as the broader market struggled. However, its upward momentum has stalled, with the asset now down over 5% to below $0.084.
MemeCore and Algorand are among the few altcoins showing daily gains, while BEAT has experienced a significant drop of 24%, followed by a 6% decline in Ondo (ONDO).
The total cryptocurrency market capitalization has decreased by approximately $40 billion in the past day, now standing at $2.220 trillion, according to CoinGecko.
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