- Bitcoin experienced a sharp decline over the past 12 hours, leading to a significant market movement.
- Over $100 billion was wiped off from the cryptocurrency market as several altcoins saw major declines.
- The dip in Bitcoin’s price was exacerbated by ETF outflows and the U.S. Federal Reserve’s recent announcements.
Bitcoin’s sudden drop leaves crypto investors wary as market sheds $100 billion in value.
Bitcoin Drops Significantly
Bitcoin has struggled to break past the $70,000 mark despite multiple attempts over the last week. The most notable effort occurred after positive U.S. Consumer Price Index (CPI) data was released on Wednesday. Bitcoin’s price surged from below $67,000 to nearly $70,000 within minutes. However, this upward movement was short-lived. A statement from the U.S. Federal Reserve confirming that they would not lower interest rates resulted in a swift downturn. By Friday evening, Bitcoin’s value had plummeted $5,000, reaching $65,000.
The weekend offered a brief period of stability with Bitcoin hovering just above $66,000. The market remained quiet into Monday before a failed upward move towards $67,000 triggered another downturn. This led Bitcoin to a monthly low of $64,000, causing nearly $500 million in liquidations.
Impact of ETF Outflows
Bitcoin’s latest drop coincided with significant outflows from exchange-traded funds (ETFs), totaling approximately $145.9 million. This contributed to the overall negative sentiment in the market. As a result, Bitcoin’s market cap has fallen below $1.3 trillion. Despite this, Bitcoin’s dominance over other cryptocurrencies has increased slightly by 0.7% overnight, now standing at 52.1%.
Altcoins Bear the Brunt
The increase in Bitcoin’s market dominance has led to sharper declines for many altcoins. Cryptocurrencies like SHIB, UNI, and WIF have each dropped roughly 10%. Other major altcoins including Solana, Dogecoin, Toncoin, Cardano, Avalanche, and Chainlink have also been substantially affected. Polkadot (DOT) is teetering on the edge of falling below $6, while Ethereum (ETH) and Binance Coin (BNB) remain in negative territory.
One standout amidst this downturn is XRP (Ripple), which has managed to gain value slightly, now trading just above $0.50.
Market Cap Decline
The overall cryptocurrency market has seen its total market capitalization fall below $2.5 trillion. This represents a loss of about $100 billion from its recent peak. The downturn signifies broader market troubles and investor wariness following the latest Bitcoin movements and ETF outflows.
Conclusion
In conclusion, the cryptocurrency market is experiencing a turbulent period marked by significant declines in value. Bitcoin’s struggle to maintain higher price levels, coupled with large-scale ETF outflows and Federal Reserve policies, has had a domino effect across the market. While some cryptocurrencies like XRP have shown resilience, the overall trend is downward. Investors should remain cautious and closely monitor market developments as they unfold.
