Bitcoin’s Price Plunges, Altcoins Hit Harder
In the past 12 hours, Bitcoin has experienced a significant drop of $3,000, pushing its price to a weekly low. However, many altcoins have been hit even harder, with XRP, DOT, LINK, LTC, UNIS, BCH, and others losing more than 5% daily.
BTC Slumped Beneath $41K
December started off well for Bitcoin as it quickly gained traction and surpassed $40,000 and even $42,000. The bullish momentum continued, resulting in a new 19-month peak of $44,700 on Saturday morning. However, Monday brought a price dump that drove Bitcoin’s price below $41,000. Although the asset has recovered some of the losses and currently stands above $42,000, this volatility has caused over-leveraged investors to suffer.
BTC’s market cap has also declined to under $830 billion, but it still dominates the altcoins at 52.4% on CMC.
Alts Drop Harder
When Bitcoin experiences extreme volatility, most altcoins tend to follow suit. As expected, red dominates most charts in this case. Ethereum is down by over 4% and sits below $2,250. Other cryptocurrencies like Binance Coin, Solana, Dogecoin, Tron, Polygon, and Shiba Inu have also seen similar percentage declines.
Ripple, Polkadot, Chainlink, Litecoin, Uniswap, Cardano, Bitcoin Cash, Stellar, and others have experienced daily drops ranging from 5-7%. At one point during the day’s trading session, the total crypto market cap saw a decline of over $80 billion.
Hot Take: Bitcoin’s Volatility Affects Altcoins
The recent plunge in Bitcoin’s price has had a significant impact on the overall cryptocurrency market, with altcoins experiencing even greater losses. While Bitcoin has managed to recover some of its losses, the high volatility has caused over-leveraged investors to suffer significant liquidations. Altcoins like Ethereum, Ripple, Polkadot, and others have also seen notable declines. This highlights the interconnected nature of the crypto market and the importance of closely monitoring Bitcoin’s movements for potential impacts on altcoin prices.
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