In recent days, Bitcoin’s price has been on a rollercoaster ride, dropping to $65,000 before recovering slightly. The primary cryptocurrency started the business week positively, reaching above $70,000 on Monday. However, things took a turn on Tuesday as anticipation and fear surrounding the US CPI numbers and FOMC meeting grew, causing Bitcoin to drop to $66,000. After the CPI beat expectations, Bitcoin skyrocketed back to $70,000 briefly before slumping to $67,000 the next day. The bearish trend continued, pushing the asset to a monthly low of $65,000.
Not only has Bitcoin been affected by the volatility, but altcoins such as NEAR, FIL, and FET have also experienced significant losses. The total crypto market cap has declined by about $50 billion overnight. Some altcoins have seen notable declines, with Solana dropping by 3% to $143, DOGE and SHIB plummeting by almost 5%, and AVAX, DOT, and ADA seeing declines of around 2-4%. However, TON and UNI have managed to buck the trend, with TON seeing a 3% jump to just over $8 and UNI up by 3.5% at $11.
The volatile market conditions have resulted in over $200 million worth of liquidations from nearly 75,000 traders in the past 24 hours. Bitcoin’s market capitalization has slipped to $1.3 trillion, although its dominance over altcoins remains strong at just over 51%. While Bitcoin has been able to bounce back and recover slightly, it is still down 1.5% on the day.
As the cryptocurrency market continues to experience fluctuations, it is important for investors to stay informed and cautious. The impact of external factors such as economic data releases and regulatory developments on the market cannot be underestimated. While volatility can present opportunities for traders, it also carries risks. It will be interesting to see how Bitcoin and altcoins navigate these challenges in the coming days and weeks.
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