Cryptocurrency markets experienced a significant downturn on Saturday, with major assets such as Bitcoin, Ethereum, and XRP sinking to their lowest levels in several months. According to CoinGecko, Bitcoin dropped by 8% in the last 24 hours to a current price of $77,195, marking the lowest price seen in nine months. This decline extends its weekly losses to over 13% and represents a staggering 39% reduction from its peak of over $126,000 last October.
Ethereum faced an even steeper decline, plummeting by 13% within the same timeframe to a price of $2,362, reflecting a weekly decrease of 20%. The second-largest cryptocurrency by market capitalization has lost more than half of its value since it reached close to $5,000 in August of this year.
The downward trend was not confined to Bitcoin and Ethereum. Other notable altcoins also suffered, with XRP falling 10% to $1.58, Solana dropping 14% to $101, and Dogecoin declining by 13% to $0.101. Overall, the cryptocurrency market experienced a 7.5% decline within the last day.
In the realm of futures trading, the impact of the market decline was profound. CoinGlass reported $2.53 billion in liquidations, predominantly affecting long positions—trades betting on rising prices—which accounted for $2.41 billion of that total. Ethereum recorded approximately $1.14 billion worth of liquidations, with Bitcoin following at $765 million.
Additionally, traders on the Bitcoin-focused prediction market Myriad, which is owned by Dastan, indicated a growing pessimism regarding the asset’s future. Currently, they estimate a nearly 65% probability that Bitcoin will dip to $69,000 before it can recover to the $100,000 mark. This likelihood has surged by 22% within just one day.
This downturn comes amidst a tumultuous week for various markets, largely driven by concerns over a potential U.S. government shutdown, which has now occurred partially since early Saturday. Additional fears surrounding a potential bubble in AI investments also contributed to the uncertainty.
In a further testament to investor wariness, approximately $1.5 billion in assets exited U.S. spot Bitcoin ETFs over the past week, according to Farside Investors. Ethereum ETFs similarly saw a decline, shedding $327 million.
Contrasting the cryptocurrency market’s struggles, traditional precious metals like gold and silver saw a surge to new all-time highs earlier in the week, reflecting a growing risk-off attitude among investors. However, both metals experienced a sharp decline on Friday, with silver plummeting over 31% during U.S. trading hours.
