Bitcoin (BTC) Experiences Significant Decline as Prices Fall Below $58,000 Alongside Altcoin Market Losses
In the past week, Bitcoin (BTC) has experienced notable difficulties, descending approximately 9% and dipping below the $58,000 threshold for the third occasion within days. This decline is not isolated to Bitcoin alone; the altcoin market is also witnessing a downturn, with both daily and weekly metrics reflecting negative trends. The cumulative market capitalization across cryptocurrencies has diminished by more than $250 billion since last Sunday.
Weekly Decline of BTC
The significant price fluctuations observed last week, particularly at its conclusion and into Monday, were unexpected. Recall that Bitcoin surged to around $64,000 over the weekend and reached a three-week peak of just over $65,100 on Monday. However, the presence of bearish market sentiment soon became apparent, capping further advancements. Consequently, the cryptocurrency experienced a sharp decline, plummeting to $58,000 by Wednesday, resulting in a substantial loss of $7,000 in value.
On Friday, Bitcoin fell further to $57,750 after struggling to decisively surpass the $60,000 mark on Thursday. Although attempts to regain ground were made, with BTC stalling at $59,000 multiple times, it ultimately fell below the $58,000 threshold again earlier today. Although it has seen a slight recovery, surpassing that level temporarily, it remains down 1.2% for the day and nearly 9% for the week, with its market capitalization shrinking to $1.150 trillion. Notably, Bitcoin’s dominance over altcoins has increased to 53.9%, as reported on CoinGecko (CG).
Altcoins Experience Significant Setbacks
The increase in Bitcoin dominance during periods of retracement often signifies a more profound struggle for altcoins, which have fared even worse than BTC. While daily statistics indicate a general decline, the weekly figures present a more alarming picture. Specifically, Ethereum has witnessed a drop of 9.5% since last Friday, with its price now fluctuating below $2,500, attributed to a lack of demand for Ethereum-based ETFs in the United States. Other notable losses include Binance Coin (BNB) down 8.6%, XRP down 6.6%, Dogecoin (DOGE) down 8.2%, Cardano (ADA) down 9%, Shiba Inu (SHIB) down 7.5%, and Chainlink (LINK) down nearly 10%.
Among larger-cap altcoins, Solana and Avalanche registered the most significant declines, both dropping more than 15% to $132 and $22, respectively.
It is worth mentioning that while TON recorded slight gains on a weekly basis, this data may be misleading due to a severe decline following the apprehension of Telegram CEO Pavel Durov last Saturday. Furthermore, Fetch.ai (FET) stands out as the only larger-cap cryptocurrency demonstrating actual gains over the same period.
In conclusion, the total cryptocurrency market capitalization has declined to $2.140 trillion, reflecting a considerable loss of over $250 billion within the last week. Investors are encouraged to remain vigilant and conduct thorough research before making investment decisions in the volatile cryptocurrency landscape, as the market continues to exhibit significant fluctuations influenced by various external factors.
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