Cryptocurrency markets are experiencing significant turmoil, with altcoins slipping dramatically as Bitcoin drops below the $84,000 threshold on Thursday. This downturn has led top tokens such as XRP and Dogecoin (DOGE) to hit lows not seen since 2024. Other notable cryptocurrencies, including Litecoin (LTC), Stellar (XLM), Cardano (ADA), and Hedera (HBAR), are also facing steep declines.
Bitcoin’s price decline comes amid a broader market reset triggered by a surge in precious metal prices, particularly an all-time high for gold surpassing $5,600 per ounce. As a result, Bitcoin has fallen to a two-month low. Currently, it is trading at approximately $83,811, significantly below its recent highs.
Dogecoin has been especially hard hit, recently down 8% in just 24 hours, trading at $0.115. This figure marks a staggering 84% drop from its all-time high of $0.73 reached in 2021. The last time Dogecoin traded at this price was in October 2024, a period characterized by major shifts in the cryptocurrency landscape as it aligned with political events like the re-election of former President Donald Trump.
In parallel, XRP has also faced a 7% drop in the last 24 hours, trading at around $1.78. This decline continues a trend for XRP, which had skyrocketed to a new all-time high of $3.65 last year after a prolonged slump. The token has since lost over 51% of its value.
The bearish sentiment affects other prominent altcoins as well. Cardano, Stellar, Litecoin, and Hedera are each down 5% or more within the same timeframe, with their current prices reflecting lows unseen since 2024. These altcoins have been struggling to recover from previous all-time highs established in 2021 or earlier.
Compounding the market’s woes, legislative uncertainty surrounding the crypto sector is contributing to volatility. On Thursday, the proposed market structure bill, known as the CLARITY Act, passed a markup session at the Senate Agriculture Committee, but the vote fell along party lines, with no Democratic support. Senate Democrats have expressed their commitment to advancing a bill but criticized Republicans and the crypto-friendly White House for excluding vital provisions.
The prevailing market conditions have escalated liquidations in the crypto space, surpassing $1 billion within 24 hours, with the majority stemming from long positions—those betting on price increases. Nearly $920 million in long liquidations were recorded during this tumultuous period, reflecting the broader impact of Bitcoin and Ethereum’s declines. Ethereum itself has experienced a notable drop of 7.7%, trading at around $2,788.
As the cryptocurrency market grapples with these challenges, investors and enthusiasts are closely monitoring developments that may affect future price movements and regulatory frameworks.
