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▲ Bitcoin (BTC)
While Bitcoin (BTC) was engaged in a fierce battle to defend the $80,000 mark, the broader cryptocurrency industry faced a series of major negative developments and significant corporate issues. After the US Federal Reserve and the European Central Bank froze 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, but quickly rebounded. It then showed a stable trend over the weekend and successfully defended its price even amid news that the US 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 following confusing reports that Iran attacked a US Navy vessel in the Strait of Hormuz. With the report soon being denied, Bitcoin recovered to $80,800 and continued its upward trend.
The rally peaked at $82,800 on Wednesday. This price is the highest since late January, an increase of about $8,000 compared to the low point when it fell below $75,000 the previous Wednesday. However, multiple analysts warned that this rally was not sustainable, and Bitcoin lost the $80,000 support level again on Thursday and Friday. According to 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 significant increase, rising over 60% weekly. ONDO increased by 48%, and WLFI by 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 rose 1.3% weekly to $79,600, Ethereum (ETH) fell 1.8% to $2,270, and XRP decreased 0.8% to $1.39.
Corporate news also increased market volatility. US 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 first-quarter earnings. CryptoPotato reported that most of this loss stemmed 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 US, reduced its workforce by approximately 14%. Coinbase stated its goal to transform into a more agile, faster, and AI-powered company. With other cryptocurrency companies like Crypto.com and Gemini showing similar trends, Coinbase's layoffs highlighted the industry's cost-cutting drive once again.
Another major issue was Bullish's plan to acquire Equiniti. Crypto exchange Bullish agreed to acquire global transfer agent Equiniti for $4.2 billion. The lawsuit between World Liberty Financial, linked to the Trump side, and Tron founder Justin Sun also escalated. After World Liberty Financial filed a counterclaim, Sun refuted the lawsuit as "groundless."
Bitcoin's $80,000 battle, Strategy's massive losses, Coinbase 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 during 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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