The cryptocurrency market took a dive over the past 24 hours with Bitcoin (BTC) tumbling below the $27,500 mark. Ethereum (ETH) along with other major altcoins also witnessed a sharp fall, following the mini bull run that had managed digital tokens to recover much of their lost grounds.
The bears are at it yet again. After a brief bullish momentum, the digital assets sector is again under the grasp of the market bears. The recent price correction can be ascribed to hotter-than-expected US Economic Survey data and UK inflation data that has managed to push US yields higher, thus, weighing on low-yielding crypto assets like Bitcoin (BTC).
The market appears to be bearish overall. According to CoinMarketCap, the global crypto market cap is down 1.46% in the last 24 hours. The crypto market cap declined a whopping $10 billion over the past 24 hours, falling from $1.16 trillion to $1.15 trillion. It seems investors and traders are awaiting the tech earnings before re-entering the market.
Healthy Pullback For Bitcoin
The world’s largest digital asset, Bitcoin (BTC) has toppled below the psychological level of $30K. After a marginal recovery, Bitcoin was back under selling pressure as the crypto asset dropped nearly a percent but held above the $27,000 level. At the time of writing, the flagship token is hovering at $27,400.
Over the past seven days, BTC dropped 7.36% due to uncertain macroeconomic conditions. Despite the slump, market analysts are bullish on Bitcoin (BTC). Shivam Thakral CEO at BuyUcoin explained the latest price correction points to a healthy pullback. This means the bellwether token has more potential for growth if macroeconomic factors turn favorable.
On the other hand, financial giant, Standard Chartered on Monday noted that Bitcoin is likely to reach $100,000 by the end of 2024, adding that the so-called “crypto winter” is over. Standard Chartered’s head of digital assets research Geoff Kendrick explained Bitcoin (BTC) is expected to get an advantage from several factors such as recent turmoil in the banking sector, a stabilization of risk assets as the U.S. Federal Reserve ends its rate-hiking cycle, and improved profitability of crypto mining.
The “digital gold” has rallied so far this year, rising above $30,000 in April for the first time in ten months. Its gains represented a partial recovery after trillions of dollars were wiped from the crypto industry in 2022 following the implosion of high profile companies including FTX and Terra/Luna. Kendrick said,
“Against this backdrop, bitcoin has benefited from its status as a branded safe haven, a perceived relative store of value and a means of remittance.”
Altcoins Swim In Red
Meanwhile, Ethereum (ETH) dropped 1.50% in the last 24 hours to slip below the $1,850 mark. At print time, ETH is trading at $1,829. Ether seems to have nullified most of the gains it had obtained from the Shapella upgrade. The second largest cryptocurrency is down nearly a massive 13% over the past seven days after surging almost 50% in the past five weeks.
In tandem with the crypto heavyweights, major altcoins are also swimming in a pool of red. XRP, Cardano (ADA), Polygon (MATIC), and Polkadot (DOT) are trading with cuts ranging between 1.25% and 3.11%, over the past 24 hours, Within the same time frame, Solana (SOL) tanked 2.15% to trade at $21.08. Popular memecoins including Dogecoin (DOGE) and Shiba Inu (SHIB) fell 0.47% and 0.68% in the last 24 hours, respectively.
