Bitcoin Falls Below $27.5K as Meme Mania, Binance Congestion Roil Markets
• Bitcoin (BTC) fell below $27,500 in the afternoon (ET).
• Ether (ETH) followed a similar pattern, falling beneath the $1,900 level.
• Investors continued to mull over a surge in interest of PEPE meme coin and Binance congestion issues.
Bitcoin Falls Below $27.5K as Investors Weigh Meme Mania and Binance Congestion Issues
Bitcoin (BTC) kicked off the U.S. trading week, falling below $27,500 in the afternoon (ET). The largest cryptocurrency by market capitalization was recently trading at around $27,350, down over 5.5% in the past 24 hours, according to CoinDesk data.
Investors continued to mull over a surge in interest of PEPE meme coin and Binance congestion issues that forced the exchange giant to temporarily suspend bitcoin withdrawals over the weekend. Binance resumed the service Sunday night (ET), but the stoppages and rising price of bitcoin raised questions about the impact of large bitcoin transaction volume.
Deflationary Narrative for Ether Continues
Ether (ETH) followed a similar pattern, falling beneath the $1,900 level it’s held for much of the past seven days. The second largest crypto in market value was trading at around $1,829, off 4.4% on a 24-hour basis. ETH’s deflationary narrative post-Ethereum Shapella upgrade has strengthened as ETH’s net issuance dropped to -2.7%, according to ultrasound money’s data tracker showed. More than 62,300 ETH worth around $116 million have been burned over the past seven days as well..
Rising Fees on Bitcoin Blockchain
As fee rates on Bitcoin blockchain surged to a 2-year high after Taproot enabled inscriptions and BRC-20 took up coveted block space due to high transaction volume on Binance which further caused temporary suspension of bitcoin withdrawals from its platform .
Overall both BTC and ETH have not tested near-term supports since rally we saw last week , Ethereum based tokens continue their deflationary trend while fees have risen drastically on BTC blockchain due to low blockspace availability causing congestions an delays on exchanges such as binance which could further cause downward pressure on prices ahead .