The once skyrocketing price of Bitcoin has taken a dramatic nosedive, losing a hefty ten thousand dollars since its peak last Thursday when it reached close to $74,000. This sharp decline has impacted the entire cryptocurrency market, with alternative coins also bleeding out heavily. The total crypto market cap has plummeted to under $2.5 trillion, dropping significantly from its peak of over $2.9 trillion just last week.
Bitcoin’s journey over the past week has been akin to a rollercoaster ride, with significant fluctuations in its price. The primary cryptocurrency had been on a remarkable upward trend for weeks, culminating in a new all-time high of $73,800. However, analysts had been predicting a correction due to its rapid surge. As anticipated, Bitcoin began to experience a downturn last Friday, dropping to $68,500 before attempting to recover to $72,000. Unfortunately, these recovery efforts were short-lived, as the price was once again pushed down to $66,000.
While Bitcoin’s price decline is significant, the impact on altcoins has been even more severe. The dominance of Bitcoin over the altcoins has increased to over 50%, indicating that the alternatives are suffering even more. Ethereum, for example, had breached $4,000 less than a week ago but has now dropped to $3,250. Solana, which recently surpassed Binance Coin, saw a decline of over 13% in a single day, bringing its price back down to $180. Other major cryptocurrencies such as Binance Coin, Dogecoin, Polkadot, Polygon, and NEAR have also experienced double-digit percentage drops in a day.
The brutal plunge in Bitcoin’s price has had a cascading effect on the entire cryptocurrency market. Most lower- and mid-cap altcoins have faced similar declines, leading to a significant drop in the total crypto market cap. The metric, which had exceeded $2.9 trillion last Thursday and remained above $2.7 trillion over the weekend, has now plummeted to under $2.5 trillion.
The recent downturn in Bitcoin’s price has sent shockwaves throughout the cryptocurrency market, causing widespread losses and uncertainty. As the market continues to navigate these turbulent waters, investors and traders must exercise caution and closely monitor the evolving landscape of digital assets.
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