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Crypto Markets Analysis: Bitcoin Falls for the Week Amid Inflation, Rate Hike Fears
Ether and most other major cryptos also sank as investors mulled the prospect of prolonged monetary hawkishness.
Feb 24, 2023, 10:20 p.m.
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Bitcoin and ether have lost their momentum over the past seven days, with each posting 6% declines as investors worried about inflation and continued monetary hawkishness.
On Friday the two largest cryptocurrencies by market capitalization plunged after the U.S. Commerce Department reported that the personal consumption expenditures (PCE) price index climbed by an unexpectedly robust 5.4% in January, offering the latest evidence that inflation remained problematic. The PCE price index is the U.S. Federal Reserve’s favored inflation gauge.
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BTC dipped near $23,000 at one point Friday, its lowest level in nine days. ETH was recently off about 2.5% over the past 24 hours.
Weekly rankings
On a relative basis, BTC’s seven-day performance was 22nd among crypto assets with a greater than $1 billion market capitalization. Ether finished 23rd among the group. Still, the two assets remain up 39% and 32% year to date amid a moderately, more upbeat economic environment than in 2022.
Topping the list was tezos (XTZ), the token of the self-amending protocol that facilitates the creation of smart contracts. Tezos posted an 8% gain over the most recent seven days, and is up 74% year to date.
At the bottom was fantom (FTM), the token of the Fantom smart contract platform, that posted a 17% loss.
While falling below the $1 billion market cap threshold, the token of the Optimism network rose approximately 20% this week, following Coinbase Global’s (COIN) announcement of its new layer 2 network launch. The network will be built using Optimism, which will also serve as a core platform developer.
Technically, momentum for both BTC and ETH declined this week because their Relative Strength Index (RSI) readings fell near the neutral level of 50. Bitcoin’s price has declined for four consecutive days on above-average volume. ETH’s price has fallen in five of the most recent seven days.
BTC’s 50-day moving average remains above its 200-day moving average, a so-called golden cross that usually yields positive results but has yet to do so in this most recent instance. BTC’s price is down 6% since its occurrence on Feb. 18.
The pricing relationship between BTC and ETH remains tight, as their correlation coefficient sits at 0.94.
Bitcoin’s prior inverse correlation with the dollar index (DXY) has shifted this week to positive, with a correlation coefficient of 0.50.
On a macroeconomic basis, little occurred this week to shake the probabilities of continued interest rate hikes by the U.S. central bank's Federal Open Market Committee (FOMC). While inflation has moderated, the persistently tight labor market remains concerning for Federal Reserve governors.
Week-to-date performance among the CoinDesk CMI sectors shows the Digitization sector up slightly to lead the rankings, with all other CMI sectors trading negatively. Members of the CoinDesk Digitization index include , Civic (CVC), Ethereum Name Service (ENS) and Galxe (GAL).
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KuCoin captured a record share of centralised exchange volume in 2025, with more than $1.25tn traded as its volumes grew faster than the wider crypto market.
Ano ang dapat malaman:
- KuCoin recorded over $1.25 trillion in total trading volume in 2025, equivalent to an average of roughly $114 billion per month, marking its strongest year on record.
- This performance translated into an all-time high share of centralised exchange volume, as KuCoin’s activity expanded faster than aggregate CEX volumes, which slowed during periods of lower market volatility.
- Spot and derivatives volumes were evenly split, each exceeding $500 billion for the year, signalling broad-based usage rather than reliance on a single product line.
- Altcoins accounted for the majority of trading activity, reinforcing KuCoin’s role as a primary liquidity venue beyond BTC and ETH at a time when majors saw more muted turnover.
- Even as overall crypto volumes softened mid-year, KuCoin maintained elevated baseline activity, indicating structurally higher user engagement rather than short-lived volume spikes.
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Bitcoin’s weakness versus gold and equities puts quantum computing fears back in focus
Some investors have revived concerns that quantum computing could threaten bitcoin, but analysts and developers say recent price weakness reflects market structure.
What to know:
- Bitcoin’s recent price stagnation has sparked a renewed debate over quantum-computing risks, with investor Nic Carter arguing that quantum fears are already shaping market behavior.
- On-chain analysts and prominent investors counter that the slowdown is better explained by large holders taking profits and increased supply hitting the market around the $100,000 level.
- Most bitcoin developers still view quantum attacks as a distant, manageable threat, noting that proposed upgrades like BIP-360 provide a path to quantum-resistant security and are unlikely to explain short-term price moves.
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