Bitcoin (BTC) witnessed a sustained fall against the US dollar over the weekend, with the BTC/USD pair dipping half a percentage point on both Saturday and Sunday before sling 1.4% on Monday morning.
At the time of writing, the pair was swapping for $62,104, nearly 6% lower week on week.
Bitcoin remains 47% higher year to date – Source: tradingview.com
Data provided by digital asset investment company ETC Group highlighted a “strong decline in active addresses that had been induced by the sharp increase in transaction fees around the Halving”.
Dollar strength is also playing into bitcoin weakness, with solid US economic performance continuing to support the greenback.
This “broader USD appreciation pressure… tends to be net bearish for bitcoin and cryptoassets from a macro perspective in the short term”, noted analysts at ETC Group.
Net buying volumes have taken a hit amid the ongoing net outflows from US spot-bitcoin exchange-traded funds, added ETC Group.
According to the data, over $328 million in net cash was withdrawn from US-listed bitcoin ETFs in the week ending Friday, 26 April.
On the bright side, ETC said that accumulation activity has recently increased strongly, “which is likely going to support prices above 60k USD for the time being”.
Elsewhere in the cryptocurrency space, Ethereum (ETH) is down around 2% week on week, while Solana SOL), Dogecoin (DOGE) and Cardano (ADA) have all fallen more than 10%.
Global cryptocurrency market capitalisation currently stands at $2.31 trillion, with bitcoin dominance at 53.2%.
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