Bitcoin’s value has recently taken a significant downturn, sliding from $115,600 to a 12-day low of $112,000 before attempting a minor recovery. This movement reflects a broader trend across the cryptocurrency market, where altcoins have experienced even steeper declines.
Last week had initially shown promise for Bitcoin, as the asset rose from below $115,000 to a peak of $118,000 on Thursday, following the U.S. Federal Reserve’s cut in key interest rates. This anticipated development provided a brief boost to Bitcoin’s price. However, the momentum was short-lived, and by Friday, the cryptocurrency fell back to around $115,000, maintaining a sideways trading pattern over the weekend between $115,000 and $116,000. Although it appeared to find support at $115,500 on Sunday, a significant shift occurred on Monday.
In the early hours of Monday, Bitcoin experienced a drop to $114,400, which coincided with a broader sell-off in the altcoin market. Subsequently, Bitcoin surged downward, hitting $112,000 for the first time since September 10. This substantial decline triggered liquidations that reached $1.7 billion within a single day. After a slight recovery, Bitcoin’s price sat at approximately $112,700, still reflecting a 2.6% decrease for the day. Its market capitalization has since fallen to $2.245 trillion, while Bitcoin’s market dominance rose to 56.4%.
Ethereum also felt the brunt of this market dip, suffering a 6.4% drop to fall below $4,200. Other cryptocurrencies, including XRP, Solana, Cardano, and Chainlink, witnessed declines of up to 8%. Notably, Dogecoin saw a sharper drop, tumbling into double-digit losses as it struggles to remain above the $0.24 mark.
The cumulative market capitalization of all cryptocurrencies has taken a substantial hit, erasing $150 billion since the previous day and dropping below the $4 trillion mark. The rapid fluctuations in the cryptocurrency market underscore the volatility that investors must navigate.
