Bitcoin, the leading cryptocurrency, is struggling to recover from the recent market decline. Despite briefly reaching $44,700, its highest price in over a year and a half, the digital asset has since retreated and is currently hovering around $41,000. Meanwhile, most altcoins have also experienced losses, with SOL dropping below $70 and AVAX plummeting to below $40.
The rollercoaster ride for Bitcoin began on Monday when it witnessed a significant drop in value, falling below $41,000. Although it quickly bounced back to $42,000, it failed to maintain its momentum. Even the release of the November CPI numbers in the US had little impact on Bitcoin’s price. Another retracement occurred shortly after, pushing Bitcoin below the $41,000 mark. Currently, Bitcoin’s market cap has declined to $805 billion, but its dominance over other altcoins has increased to 52.2%.
Avalanche (AVAX) emerged as one of the top-performing altcoins recently, experiencing an 80% surge in just one week. It even reached a multi-month high above $40. However, AVAX saw a 12% decline in its value over the course of a day and is currently trading at $36. Solana (SOL), another prominent altcoin, also experienced a 7% daily drop and now sits below $70. Ethereum, Ripple, Cardano, Dogecoin, Tron, Polkadot, Chainlink, and Polygon are among the other cryptocurrencies that have seen losses within the past 24 hours.
Amidst the general market retracement, a few cryptocurrencies have managed to defy the trend. ELF has seen a 13% increase in value, while FTT, NEO, and ATOM have all witnessed gains of around 5%. However, these exceptions are overshadowed by the overall decline in the total crypto market cap, which has decreased by more than $30 billion overnight and currently stands at $1.540 trillion.
Bitcoin’s future remains uncertain, as the US Federal Reserve is scheduled to conclude its latest FOMC meeting today. This event is likely to introduce further volatility to the market. Bitcoin, along with other cryptocurrencies, will undoubtedly be affected by any decisions or announcements made during the meeting.
Bitcoin’s recent struggle to regain its footing, coupled with the downtrend in altcoins, highlights the inherent volatility of the cryptocurrency market. While some altcoins have bucked the trend and shown resilience in the face of the downturn, many others have experienced significant losses. As the market awaits the outcome of the FOMC meeting, uncertainty prevails, and investors must be prepared for further price fluctuations.