Bitcoin had a substantial decline, reaching a low of $112,605.2, as the overall crypto economy began a bearish trend. That drop happened on August 2, affecting everything across the crypto landscape – especially sectors such as decentralized finance (DeFi). Even with the price drop, Bitcoin’s market dominance held steady, in fact, it didn’t even really budge. On the other side, El Salvador stuck with its plan to accumulate Bitcoin, increasing its already greatly significant holdings.
Bitcoin's dominance held steady at 61.4%. Market analysts suggest that a move above 63% dominance could signal a more robust bull case for Bitcoin compared to alternative cryptocurrencies (altcoins). With the most recent all-time high for Bitcoin at close to $120,000, the current price represents more than a 50% pullback from that peak.
A number of technical indicators suggest a continued downward trajectory for BTC. The last three candlesticks have been bearish in a row hinting at continued strong selling pressure. The Moving Average Convergence Divergence (MACD) indicator has turned negative, indicating worsening momentum, which supports the case for more price weakness ahead.
Even through the crypto market crash, El Salvador has refused to stop buying Bitcoin. The country recently added seven more BTC to its impressive, growing holdings, bringing its total BTC on hand to 6,256.18 BTC. These holdings are currently worth a little over $708.5 million, according to today’s market prices.
Ethereum, the second-largest cryptocurrency by market capitalization, saw a sharp drop, too. ETH fell by 2.25% to $3,442.34. Ethereum's market dominance currently stands at 11.5%.
The decentralized finance (DeFi) sector experienced a small pullback. The total value locked (TVL) in DeFi protocols declined by 0.63%, closing at $131.171 billion. This suggests a recent cooling off in DeFi activity, likely due in part to the overall bearish market sentiment.
In other Ethereum related news, Sharplink Gaming runs up its ETH stash. As a result, including the recent additions, its Ethereum balance was boosted to 480,204 ETH worth more than $1.5 billion at today’s ETH price. This move indicates that there remains a strong interest in Ethereum among specific segments of the gaming and investment sectors.
