Bitcoin, the leading cryptocurrency, has witnessed a significant drop in its price, losing roughly ten thousand dollars since its peak last Thursday at almost $74,000. This sudden downfall has also impacted other alternative coins, causing the total crypto market cap to plummet to under $2.5 trillion from exceeding $2.9 trillion just last week.
After a remarkable surge, with Bitcoin surpassing $73,000 and hitting a new all-time high of $73,800, analysts were quick to point out that a correction was imminent. This correction began last Friday when the price dropped to $68,500. Despite attempts to recover towards $72,000, Bitcoin was pushed back down to $66,000. The cryptocurrency briefly spiked to $70,000 over the weekend but failed to sustain the momentum. The continuous decline brought Bitcoin to its lowest level in about two weeks, reaching $63,000.
While Bitcoin’s market capitalization has decreased to $1.250 trillion, its dominance over alternative coins has increased to slightly over 50%. This rise in Bitcoin dominance amidst a price plunge indicates that altcoins are experiencing even greater losses. Ethereum, the second-largest cryptocurrency, has dropped by over 9%, settling at $3,250 after surpassing $4,000 less than a week ago. Other major altcoins like Solana, Binance Coin, Dogecoin, Polkadot, Polygon, and NEAR have all witnessed significant declines of over 10% within a day, mirroring the overall market trend.
The entire crypto market, including lower- and mid-cap altcoins, has taken a hit, with the total market cap plummeting to under $2.5 trillion on various platforms. Just a few days ago, the market cap stood above $2.9 trillion, underscoring the magnitude of the recent decline. The fluctuations in Bitcoin’s price have reverberated across the entire cryptocurrency ecosystem, bringing uncertainty and volatility to investors and traders alike. As the market continues to navigate these turbulent waters, only time will tell if and when a recovery may be on the horizon.