Bitcoin has seen a volatile week, peaking at $118,000 before experiencing a significant slip to $115,200 on Saturday morning. This recent dip follows a week of positive momentum triggered by the U.S. Federal Reserve’s decision to lower key interest rates.
Leading up to the Federal Open Market Committee (FOMC) meeting Wednesday, Bitcoin showed fluctuations, climbing to around $117,200 before dropping below $115,000. Following the Fed’s announcement of the rate cut, Bitcoin rebounded to $116,000. It continued its upward trajectory into early Thursday, ultimately reaching a multi-week high of $118,000. However, this upward trend could not be sustained, as the cryptocurrency faced rejections, particularly on Saturday when it fell to $115,200. A minor recovery has since brought it back to approximately $116,000.
Despite these fluctuations, Bitcoin’s market capitalization remains above $2.3 trillion, although its dominance over altcoins is now just below 56%.
In the altcoin market, many larger-cap cryptocurrencies are also experiencing losses. Ethereum has dipped below $4,500, while Dogecoin has fallen by more than 3% and Chainlink down by 5%. XRP is struggling to maintain crucial support at $3, with other notable coins like Solana, Avalanche, and Sui also reporting losses.
The situation is even more dire for certain altcoins, with M witnessing a staggering 16% drop to $2.2, MYX down by 12%, and PENGU falling by 7%. Overall, the total cryptocurrency market capitalization has declined by over $50 billion since its recent peak, now sitting at $4.14 trillion.
As the crypto market continues to navigate these fluctuations, investors remain cautious amid a rapidly evolving economic landscape.
