TL;DR
- Bitcoin’s Dramatic Fall: A week ago, BTC reached a multi-week peak of $70,000, but within 168 hours, everything changed. Bitcoin lost momentum, dropping from $66,000 to under $50,000 due to economic uncertainty and Wall Street sell-offs.
- Altcoins Hit Hard: Ethereum (ETH) fell 20% to hover above $2,200 amid rumors of Jump Crypto liquidating its ETH positions. Other altcoins like BNB, Solana, Ripple, Dogecoin, and more suffered double-digit losses.
- Total Market Cap Decline: The cumulative crypto market cap dropped $500 billion since Friday, dipping below $2 trillion. Global economic and geopolitical factors, including Japan’s interest rate hike and speculative crypto sales, contribute to negative sentiment.
The cryptocurrency market has been gripped by panic as Bitcoin (BTC) and altcoins experience a significant downturn. A week ago, BTC bulls were in control, pushing the asset to a multi-week peak of $70,000. However, within the next 168 hours, everything changed.
Bitcoin lost momentum, dropping from $66,000 to under $50,000. Economic uncertainty, both in the US and globally, contributed to the decline. Wall Street also suffered market turmoil, worsening BTC’s fall. The weekend brought even more painful declines.
On Sunday, BTC dipped below $60,000 for the first time in three weeks, and later that evening, it hit $57,000. The worst was yet to come on Monday morning when Bitcoin plunged to just under $50,000—its lowest price since mid-February. Liquidations exceeded $1 billion, affecting nearly 300,000 traders.
Despite a partial recovery to around $51,300, BTC remains down 15% for the day and 24% over the past week. Its market cap has dropped to $1.050 trillion, while its dominance over altcoins has risen to 53.7%.
Altcoins in Crisis
Altcoins have fared even worse. Ethereum (ETH), amid rumors of Jump Crypto liquidating its ETH positions, plummeted by 20% to hover just above $2,200. Other altcoins like BNB, Solana, Ripple, Dogecoin, Toncoin, Avalanche, Shiba Inu, Bitcoin Cash, and Chainlink also suffered double-digit losses, plummeting between 18% and 20%.
The situation worsened over the past seven days. WIF lost 52% of its value, BRETT dropped by 48%, AR by 45%, and PEPE by 44%.
Total Market Cap Takes a Hit
The cumulative market cap of all crypto assets shed $500 billion since Friday, dipping below $2 trillion—the first time in six months. Bitcoin’s sharp decline triggered panic selling, resulting in over $1 billion in liquidations. Beyond crypto, the broader financial market faces turbulence due to global economic and geopolitical factors.
Japan’s decision to raise interest rates, disappointing US nonfarm payroll data, escalating tensions between Israel and Iran, and reports of speculative crypto sales by Jump Trading have all contributed to negative market sentiment.
Investors are on edge, with the Crypto Fear and Greed Index hitting its lowest since early July. Anxiety prevails as traders brace for further volatility in the crypto space.
