Bitcoin, the leading cryptocurrency, has experienced a significant drop in price, falling below the $60,000 mark for the first time in weeks. This downward trend has also affected altcoins, with many of them seeing substantial losses over the weekend.
The recent price action of Bitcoin has been quite turbulent. Last weekend, the cryptocurrency reached a peak of $70,000 after a period of volatility. However, the situation took a turn for the worse as the price dropped by $4,000 in a single day. Following some stability around the $66,000 mark, Bitcoin experienced another sharp decline on Friday, plummeting to $62,200.
The catalyst for this latest drop was the news of rising unemployment rates in the United States, which led to a sell-off in risky assets like Bitcoin and US stocks. As a result, Bitcoin’s price continued to decline over the weekend, reaching a low of just under $60,000.
While Bitcoin has since recovered slightly and is currently trading above that level, it is still down 2% on the day and more than 10% since the previous Sunday. Its market cap has also dropped below $1.2 trillion, although its dominance over other cryptocurrencies has increased to 53.2%.
The situation is even bleaker for altcoins, as many of them have seen significant losses in the wake of Bitcoin’s decline. Leading altcoins like Ethereum, Solana, Dogecoin, and Bitcoin Cash have all experienced drops ranging from 5% to 8%. Other major cryptocurrencies like XRP, Cardano, and Litecoin have also seen declines, albeit to a lesser extent.
Overall, the total cryptocurrency market cap has lost $70 billion since yesterday and is now sitting at $2.230 trillion. This represents a significant decrease of over $300 billion in just a few days, indicating the extent of the market’s current bearish sentiment.
In conclusion, the cryptocurrency market is currently facing a period of heightened volatility and uncertainty, with both Bitcoin and altcoins experiencing significant price swings. Investors are advised to exercise caution and conduct their own research before making any investment decisions in this challenging market environment.