Crypto Market Recovers After Volatile Week Driven by Macroeconomic Factors
The cryptocurrency market rebounded after a macro-driven dip that erased $50 billion in value on Sept. 29, bringing the aggregate market cap down to $2.95 trillion. The downturn coincided with rising oil prices and Treasury yields, but the market recovered by the end of the week, fueled by optimism for a strong October.
Bitcoin led the market's volatility, closing September with a 7% gain and narrowing its year-to-date losses to 4%. The asset dipped below $83,000 on Monday before recovering to $85,300 on Wednesday. By Oct. 2, Bitcoin surged to $87,217 but quickly fell to $84,250. A weekend rebound pushed the price to $85,500, securing a modest weekly gain of nearly 1% and a market cap just over $1.7 trillion.
Ether (ETH) and other high-cap altcoins traded sideways, with ETH gaining only 0.4% for the week. BNB rose 1%, while Quant (QUANT) and Hedera (HBAR) saw impressive gains of 39% and 9%, respectively. Meanwhile, Zcash (ZEC), one of the best-performing altcoins in September, plummeted 17%, closing at $1,332. Other altcoins like Rain (RAIN), Near (NEAR), and Uniswap (UNI) also logged significant losses.
The mixed performance among altcoins dragged their aggregate market cap down from $1.3 trillion to $1.285 trillion by Sunday. The overall market ended the week nearly flat, reflecting the volatility driven by macroeconomic factors.