The cryptocurrency market has been experiencing dire conditions as bitcoin recently plummeted to another multi-month low of around $57,000. This drop has led to massive losses across the board, with altcoins also following suit. In the past 36 hours, the total market cap has seen a significant decrease of well over $200 billion. The volatile nature of the cryptocurrency space has once again come into play.
Bitcoin’s price journey in the past few days has been nothing short of turbulent. Despite heading towards $65,000 on Monday morning, the cryptocurrency failed to surpass that level. Subsequently, within the next 36 hours, bitcoin experienced a series of steep declines. Starting with a drop to $62,000, bitcoin continued to slide further down, reaching a two-month low of $59,100. Following a brief uptick, BTC took another nosedive in the past few hours, dropping to just over $57,000 – its lowest point since February 28.
The latest downtrend in the cryptocurrency market comes at a time when the upcoming US FOMC meeting is looming. This event usually brings heightened volatility to the market, and the current situation is no exception. Bitcoin is now 9% down for the day and 14% lower than it was at this time last week. Its market capitalization has fallen to $1.130 trillion, with dominance over altcoins standing at 50.5%.
Unsurprisingly, most alternative coins have mirrored bitcoin’s downward trajectory. Ethereum, which had been trading above $3,200 after the launch of Hong Kong spot ETFs, has since plunged by over $300 to below $2,900. Other altcoins like Binance Coin, SOL, DOGE, TON, SHIB, AVAX, BCH, NEAR, and many more have also experienced double-digit losses. The total cryptocurrency market cap now stands at $2.240 trillion, having shed over $200 billion since Monday morning.
The recent price action in the cryptocurrency market serves as a reminder of the extreme volatility inherent in this space. Despite the ups and downs, experienced investors are well-aware of the risks associated with trading digital assets. As market conditions continue to fluctuate, only time will tell when the next major shift will occur.