Bitcoin Fails To Shine On Its Birthday — Ethereum, Dogecoin Follow Lead — But Here’s Why The Downtrend May Be Temporary – Bitcoin – United States Dollar ($BTC)
Bitcoin (CRYPTO: BTC) traded nearly 1.8% lower on the day it celebrated its 13th birthday as the global cryptocurrency market cap rose 0.2% to $2.2 trillion.
What Happened: BTC, which was first mined on Jan. 3 by its pseudonymous creator Satoshi Nakamoto, has fallen 8.1% for the week.
The second-largest coin by market cap, Ethereum (CRYPTO: ETH) traded 1.6% lower at $3,752.73 over 24 hours. Over a seven-day trailing period, it has fallen 6.9%.
Dogecoin (CRYPTO: DOGE) was down 2.1% over 24 hours at $0.17. Over the past seven days, it has fallen 8%.
DOGE-rival Shiba Inu (SHIB) declined 3.3% to $0.000033 over 24 hours. For the week, it has dropped 13.5%.
The top three gainers over 24 hours were BORA (BORA), yearn.finance (YFI), and Ankr (ANKR), according to CoinMarketCap data.
BORA shot up 18.9% to $1.20, YFI rose 13.65% to $41,112.42, while ANKR was up 9.75% to $0.1135 in the period.
See Also: How To Buy Bitcoin (BTC)
Why It Matters: On Monday, Block Inc (NYSE:SQ) CEO Jack Dorsey tweeted an image of the genesis block to mark Bitcoin’s birthday.
— jack (@jack) January 3, 2022
Since 2022 began, BTC has fallen 2.9% as December’s bearishness spilled over into the new year.
“Although 2021 ended on a gloomy note, Bitcoin and Ethereum closed the year up 57% and 403%, far surpassing returns for traditional financial assets,” noted Kaiko Research, in an emailed note.
Through a period of lean volumes during the December holidays, Kaiko Research noted unusual trading activity on Coinbase Global Inc’s (NASDAQ:COIN) trading platform.
Sharing a chart of a second-by-second buy vs. sell volume of transactions above 5 BTC, the research firm said a cluster of buy and sell orders were executed immediately before options expiry on Friday. While on Jan. 1 a large uptick was seen in sell orders.
BTC Trade Volume On Coinbase — Courtesy Kaiko Research
“It seems likely that a whale executed a large buy order on Coinbase causing a spike in market share, and in the days that followed whales were mostly sellers,” wrote Kaiko Research.
The downbeat sentiment in the cryptocurrency market was reflected in Alternative’s “Crypto Fear & Greed Index” which pointed towards “Extreme Fear” at press time.
However, the downtrend is short-term as BTC has broken out of the down-trending line dating back to the all-time high and has retested support at that line, according to a note by GlobalBlock analyst Marcus Sotiriou.
BTC-USD 1D Chart — Courtesy GlobalBlock
“This suggests a move back to the local range highs at $51,000-52,000 could be on the cards soon,” as per Sotiriou.
Read Next: 13 Fun Facts You May Not Know About Bitcoin On The Cryptocurrency’s 13th Birthday