The recent economic uncertainty in the United States has had a significant impact on the cryptocurrency market, with Bitcoin experiencing a tumultuous journey in the past few days. The digital asset saw its price plummet to $60,500, marking its lowest point in nearly three weeks. This sudden drop was accompanied by a similar downturn in altcoins such as SOL, TON, and UNI, which declined by over 5% within the same period. Ethereum also took a hit as it slipped below the $3,000 mark.
The chaos in the market began after former President Donald Trump’s appearance at the 2024 Bitcoin Conference in Nashville. Following his attendance, Bitcoin’s price surged to $70,000 on Monday, reaching a 7-week peak. However, this upward momentum was short-lived as the asset was quickly rejected and subsequently dropped by four thousand dollars. The situation worsened as the week progressed, with bears regaining control and initiating several leg-downs that ultimately led to Bitcoin’s price plunging to $60,500 late last night.
The negative sentiment in the market was not limited to Bitcoin, as altcoins also suffered considerable losses. Ethereum, BNB, Solana, Toncoin, Uniswap, FLOW, MKR, WIF, JUP, ONDO, and other alternative coins experienced significant declines in value. The cumulative market cap of all cryptocurrencies plummeted to $2.3 trillion, losing $100 billion in just one day and $150 billion in the past two days. This downward trend reflects the broader economic uncertainty and investor unease in the wake of the US economy’s weak job report, which indicated the highest unemployment rate since October 2021.
Despite the recent downturn, Bitcoin has shown some resilience by recovering ground and stabilizing around $62,000. However, its market cap has shrunk to under $1.220 trillion, while its dominance over altcoins stands at around 53%. The road ahead remains uncertain, with market participants closely monitoring economic indicators and political developments for clues on how the cryptocurrency market will fare in the coming days.
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