Bitcoin Takes a Dive with Alts Following Suit
Bitcoin, after attempting to breach the $70,000 mark last week, faced a sharp decline in the past 12 hours, dropping to a monthly low of $64,000 amidst significant outflows from spot ETFs. This dive caused over $100 billion to vanish from the cryptocurrency markets, leading to a domino effect that impacted most altcoins as well.
BTC Struggles
Bitcoin’s journey towards $70,000 faced several obstacles last week, with the cryptocurrency failing to break through this key level. Despite a sudden surge above $67,000 following favorable US CPI data, the US Federal Reserve’s decision not to cut interest rates triggered a massive sell-off, causing BTC to plummet by $5,000 by Friday, settling at $65,000.
- The weekend and Monday saw a brief period of stability as Bitcoin hovered around $66,000.
- However, bulls attempted to push the price above $67,000, only to be met with a rejection, sending BTC tumbling to $64,000, resulting in liquidations exceeding $500 million.
Altcoins Suffer Losses
With Bitcoin’s dominance increasing during its correction, altcoins experienced even steeper declines. Tokens like SHIB, UNI, and WIF recorded approximately 10% losses, while other major altcoins such as Solana, Dogecoin, Toncoin, Cardano, Avalanche, and Chainlink also saw significant dips. DOT teetered close to falling below $6, while ETH and BNB were also in the red.
- XRP emerged as the outlier among larger-cap altcoins, surging to over $0.5 amidst the market correction.
- The total cryptocurrency market cap dropped below $2.5 trillion within a day, shedding approximately $100 billion compared to the previous day.
Hot Take: Brace for Impact
As Bitcoin faces immense pressure and altcoins follow suit, the overall cryptocurrency market seems to be in a precarious position. With rapid fluctuations in prices and growing uncertainties, investors are advised to exercise caution and closely monitor the market dynamics in the coming days.
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