BTC Slips Below $41,000
After several days of trading sideways, the price of Bitcoin (BTC) took a turn for the worse and slipped below $41,000. This downward movement in BTC’s price has had a ripple effect on most alternative coins (altcoins), with AVAX and SOL both experiencing a drop of over 5%.
The Rollercoaster Ride of BTC
Two weeks ago, BTC faced increased volatility when the US Securities and Exchange Commission approved 11 spot BTC exchange-traded funds (ETFs). This news caused the asset to surge past $49,000 for the first time in nearly two years. However, just a day later, Bitcoin experienced a significant slump, losing over $7,000 in value. Since then, BTC has been trading mostly sideways, with minimal price fluctuations.
Last Friday, BTC hit a monthly low of $40,200 before recovering slightly to around $42,000. However, in the past 24 hours, the price dropped once again and is now below $41,000. Despite this decline in price, BTC still holds a market cap of $800 billion and maintains dominance over altcoins at 49.9% on CoinMarketCap.
Altcoins Join the Downtrend
As expected, the decline in BTC’s price has had a negative impact on most altcoins. Solana (SOL) and Avalanche (AVAX) are leading this adverse trend with losses of 5-6%. SOL is now below $90 and AVAX is close to breaking under $30.
Other larger-cap altcoins such as Ethereum (ETH), Binance Coin (BNB), XRP, Cardano (ADA), Dogecoin (DOGE), and Polkadot (DOT) have also seen losses ranging from 1.5% to 4.5%. Additionally, several other altcoins including OP, INJ, NEAR, TIA, FIL, and ARB have experienced further losses.
Market Decline
Overall, the entire crypto market has seen a decline of approximately $40 billion overnight and currently sits at $1.6 trillion on CoinMarketCap.
Hot Take: Crypto Market Experiences a Downturn
The cryptocurrency market has taken a hit as BTC’s price slipped below $41,000 and altcoins followed suit with significant losses. This downward trend comes after a period of sideways trading for BTC and highlights the volatility of the crypto market. While BTC’s market dominance remains relatively stable, altcoins such as SOL and AVAX have experienced notable declines. It remains to be seen how the market will react in the coming days and if BTC can regain its upward momentum.
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