The cryptocurrency market has experienced a significant dip over the past week. Virtual (VIRTUAL) token, for instance, plummeted 35% from its all-time high of $5.25, hitting weekly lows . This decline was partly driven by an 88% drop in new addresses and a 23% dip in open interest, indicating declining interest and weaker conviction among traders.
Other cryptocurrencies have also been affected. Cardano (ADA) dipped more than 6% in the past 24 hours, leading losses among top 20 cryptocurrencies by market cap . IOTA (IOTA) also experienced sharp fluctuations, diving to lows of $0.30 and hitting $0.33. Meanwhile, AI agent token ai16z tanked by over 40% after reaching an all-time high of $2.47 on January 2, 2025 .
The overall cryptocurrency market cap decreased by 3.6% to approximately $3.4 trillion, with Bitcoin struggling amid downside pressure near $93k . Analysts attribute this downturn to various factors, including macroeconomic headwinds, heightened market uncertainty, and the US government's selling of Silk Road BTC .
Some analysts suggest that the dip may present a buying opportunity, particularly for cryptocurrencies like Dogecoin (DOGE), which has been experiencing significant volatility . However, it's essential to conduct thorough research and consider market conditions before making any investment decisions.
