Cryptocurrency Market Faces Corrections in 2024
Cryptocurrencies are experiencing market corrections early in 2024 due to various factors, including negative reports and a fake Bitcoin ETF social media post. On-chain data reveals declining asset prices, particularly among altcoins, with many coins experiencing a significant drop of over 10% in the past week.
Solana and Ripple See Declines
Solana, which had a strong performance in December, temporarily surpassed BNB as the fourth most popular cryptocurrency by market capitalization. However, it has since fallen by 10.64% in the last week. Ripple (XRP) also remains in the red zone with an 11.59% loss in the past week.
BNB Shows Improvement
On the other hand, BNB has seen better performance in the last month and regained its fourth spot by market capitalization. The asset has increased by 24% in the last 30 days due to renewed institutional investment and improved market conditions.
Altcoins Cardano and Avalanche Face Similar Challenges
Cardano (ADA) and Avalanche (AVAX) have experienced larger losses of 18.33% and 16.47%, respectively, as wider liquidations continue. Both assets have seen increased volumes after recovering from industry collapses in 2022 and attracting new investors.
Ethereum Remains Stable
While other altcoins face liquidations, Ethereum is the only top-ranked altcoin that has gained value in the past seven days. Ethereum is currently trading at $2,405 with a 5% gain in the last 24 hours and a slight rise of 1.2% in the past week.
Reasons for Liquidations
The market corrections are primarily attributed to the Matrixport report on BTC ETF application rejections and the fake post on an ETF approval following the hack of the Securities and Exchange Commission’s Twitter account.
Hot Take: Altcoins Experience Losses Amid Market Liquidations
Cryptocurrencies are facing market corrections in 2024, with altcoins experiencing significant losses. Factors such as negative reports and a fake Bitcoin ETF post have contributed to the decline. While some assets like BNB have shown improvement, others like Solana and Ripple have seen declines. Altcoins Cardano and Avalanche are also facing challenges despite increased volumes and investor interest. Ethereum remains stable amidst the market corrections. The reasons behind the liquidations include BTC ETF application rejections and a fake ETF approval post due to a Twitter hack. Overall, the cryptocurrency market is undergoing a period of correction and volatility.
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