The cryptocurrency market has seen a staggering decline of over $500 billion since Friday, with the total market capitalization falling below $2 trillion for the first time in six months. This dramatic drop marks one of the most challenging periods for Bitcoin and altcoins in recent history.
Bitcoin’s Sharp Decline
A week ago, Bitcoin was thriving, hitting a multi-week high of $70,000. However, the situation quickly deteriorated over the next several days. By last Monday, Bitcoin had already dropped to $66,000. It maintained this level for a few days before plummeting further on Thursday and Friday due to rising economic uncertainty in the US and worldwide.
The downturn intensified over the weekend. On Sunday morning, Bitcoin fell below $60,000 for the first time in three weeks, and by the evening, it had dropped to $57,000. The worst came on Monday morning when Bitcoin plunged to just under $50,000, its lowest point since mid-February. This sharp decline led to over $1 billion in liquidations and nearly 300,000 traders incurring significant losses. Although Bitcoin has since rebounded to around $53,000, it remains down 12% on the day and 24% over the past seven days. Its market cap has shrunk to $1.050 trillion, with its dominance over altcoins rising to 53.7%.
Altcoins Deep in the Red
The performance of altcoins has been even worse. Ethereum’s price dropped by 20%, now hovering just above $2,300, amid rumors of Jump Crypto selling off its ETH holdings. Other major altcoins like Binance Coin, Solana, Ripple, Dogecoin, Toncoin, Avalanche, Shiba Inu, Bitcoin Cash, and Chainlink have all experienced double-digit percentage losses since yesterday.
Over the past week, some altcoins have been hit particularly hard. WIF has lost 52% of its value, BRETT is down by 48%, AR has decreased by 45%, and PEPE has fallen by 44%. Overall, the combined market capitalization of all crypto assets has dropped by $500 billion since Friday, falling below $2 trillion for the first time in six months.
Conclusion
This significant market decline highlights the volatility and risk in the cryptocurrency market. As the market reacts to broader economic issues, investors and traders are reminded of the potential for rapid and substantial losses. Staying informed and closely monitoring market trends is crucial for navigating these turbulent times.
