The cryptocurrency market is currently navigating through turbulent waters, as Bitcoin and several altcoins have plunged in value, leading to a significant market cap reduction. Notably, the total market cap has witnessed a sharp decline of approximately $50 billion, echoing the uncertainty in this digital financial space.
Bitcoin’s Price Turmoil
Bitcoin, the trailblazer of cryptocurrencies, is facing a challenging phase. The price of Bitcoin has been on a downward trajectory following the approval of multiple ETFs by the US Securities and Exchange Commission (SEC) last week. This approval initially sparked a surge in Bitcoin’s value, propelling it to a near two-year high of $49,000. However, this peak was short-lived, and a steep decline soon followed, erasing thousands of dollars from its value.
In the days that followed, Bitcoin struggled to regain its footing, momentarily stabilizing below $43,000. Yet, this stability was fleeting, and a subsequent price drop occurred, pushing Bitcoin to a monthly low of under $41,000. Although there has been a slight recovery, with Bitcoin currently trading just above $41,000, it still marks a 3.5% decrease within a day. This downturn has significantly impacted its market capitalization, which now stands at around $810 billion, with Bitcoin’s dominance in the crypto market also witnessing a decline.
Altcoins Follow Suit
The ripple effect of Bitcoin’s price fluctuations is evident in the altcoin market, with several major altcoins recording substantial losses. Ethereum, Ripple, Cardano, Dogecoin, Polkadot, Tron, Chainlink, Toncoin, and Polygon have all experienced declines in the range of 1% to 5%. More severe drops are seen in Solana, Avalanche, ICP, and Uniswap, with each falling by 6% to 9%.
Some altcoins have faced even harsher fates, with HNT, SI, ENS, LUNC, and AKT all plummeting by double-digit percentages in the past 24 hours. This widespread decline across the altcoin market further compounds the overall market situation, bringing the cumulative market cap of all crypto assets down to $1.630 trillion, as per data from CoinMarketCap.
