Bitcoin has experienced a significant price drop in the past few hours, falling below the $60,000 mark for the first time in several weeks. This downward trend has not only affected Bitcoin but also altcoins like ETH, SOL, DOGE, and BCH, which have seen drops of 6-7%.
Last weekend, the cryptocurrency market was also volatile, but the situation was quite different. Bitcoin was on a rollercoaster ride, reaching a peak of $70,000 after Donald Trump’s pro-crypto speech at a conference. However, the asset quickly retraced and fell by $4,000, signaling a change in the market sentiment.
The decline in Bitcoin’s price was further exacerbated by external factors, such as the rising unemployment rate in the United States. The news of the increased unemployment levels caused a sharp drop in not only Bitcoin but also other risky assets like US stocks. This led to Bitcoin plummeting from $66,000 to $62,200 in a matter of hours.
As Bitcoin experienced a retracement, its dominance over the altcoins increased to 53.2%. This rise in Bitcoin dominance has had a detrimental impact on altcoins, with many of them experiencing significant losses. Altcoins like SOL, DOGE, AVAX, SHIB, BCH, and NEAR have all seen declines ranging from 5-8%.
The total cryptocurrency market cap has also taken a hit, losing $70 billion since yesterday and dropping to $2.230 trillion. This represents a significant decrease of over $300 billion in just a few days, highlighting the overall bearish sentiment in the market.
The recent price drop in Bitcoin and the broader cryptocurrency market is a clear indication of the volatility and uncertainty that currently exists. External factors, market sentiment, and Bitcoin’s dominance all play a role in shaping the market landscape. Investors and traders should approach the market with caution and stay informed about the various factors influencing asset prices.
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