Traditional Cryptocurrency Markets Plummet by $200 Billion over a 48-Hour Period, Pulling Bitcoin Down to a 12-Day Depth (Weekend Market Review)
In the wake of escalating tensions between the US and China, the price of Bitcoin plummeted over the last 12 hours to a multi-week low of $103,000, following a series of unfavorable economic developments. The decline in Bitcoin was mirrored by a steep fall in the prices of numerous altcoins, such as SUI, LINK, DOGE, SOL, ADA, and more. Conversely, CRO bucked the trend with a double-digit surge in its price.
Since reaching nearly $112,000 last Thursday and reaching an all-time high, Bitcoin's price has struggled to regain momentum. The downward spiral commenced the following day, following a recommendation from US President Trump for new tariffs against the EU. Although Trump delayed the implementation, Bitcoin failed to rebound decisively and was stopped at around $110,000 on multiple occasions. The latest rejection, which occurred at $109,000 on Thursday, was the most significant to date, resulting in a drop to $105,000.
Bitcoin recovered slightly to $106,000 the following day, but bears emerged once again, pushing the cryptocurrency south to a 12-day low of over $103,000. The decline occurred after Trump accused China of violating the trade agreement between the two nations, while Beijing responded calmly.
As of now, Bitcoin has recovered some ground, with its price above $103,500. However, its market cap has decreased to $2.06 trillion on CoinMarketCap, while its dominance over the altcoins has increased to 61.3%.
In addition to Bitcoin, the altcoins have experienced substantial losses over the past day. Ethereum is at the brink of breaking below $2,500 after a 4.5% drop. XRP has fallen below $2.15, while DOGE, SOL, ADA, SUI, LINK, and AVAX have plummeted by up to 9%. The situation with the less capitalized altcoins is even more painful, with many cryptocurrencies like ENA, INJ, VIRTUAL, and PEPE losing over 10% of their value.
CRO is the lone exception, having gained 17% in the past day and trading close to $0.11. The total crypto market cap has seen approximately $200 billion disappear in the past two days, with the overall market cap now standing at $3.360 trillion.
Regarding the reasons behind the Bitcoin and altcoin price drops, several factors have come into play: macroeconomic conditions, historical "sell in May" patterns, market sentiment, liquidity, and Bitcoin's dominance. Although there are signs of potential recovery, particularly among some altcoins, a lasting altcoin season has yet to materialize. Meanwhile, analysts have predicted possible price surges for Bitcoin and altcoins in the coming months, potentially peaking in July, before entering a bearish phase. However, market volatility and macroeconomic factors will continue to impact these predictions.
- The decline in Bitcoin's price, which plummeted to a multi-week low of $103,000, was mirrored by a steep fall in the prices of various altcoins such as Ethereum, XRP, DOGE, SOL, ADA, SUI, LINK, and AVAX.
- At the same time, CRO bucked the trend with a double-digit surge in its price, having gained 17% in the past day and trading close to $0.11.
- The total crypto market cap has seen approximately $200 billion disappear in the past two days, with Bitcoin's dominance over the altcoins increasing to 61.3%.
- Analysts have predicted possible price surges for Bitcoin and altcoins in the coming months, potentially peaking in July, before entering a bearish phase, but market volatility and macroeconomic factors will continue to impact these predictions.
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