Bitcoin has recently endured a tumultuous rollercoaster ride, marked by significant price fluctuations that have reverberated throughout the entire cryptocurrency market. With its recent plunge to $65.5K, altcoins have faced severe downturns, shedding substantial value and bringing the total market capitalization down by approximately $70 billion overnight.
The Rollercoaster of Bitcoin’s Price Movement
Friday night witnessed Bitcoin’s price moving dramatically, plummeting by $3,000 in mere minutes before moderately rebounding to around $67,000. Prior to this, the week had initiated positively for Bitcoin, which observed a price surge from $68,000 to a high of $69,500—its most elevated valuation since late July. Unfortunately, a swift rejection at this peak triggered a decline, guiding Bitcoin back southward to $67,000 by the close of the day and into Tuesday.
The bears entered the fray on Wednesday, enacting a notable downturn that saw Bitcoin dip to $65,000. However, the bulls soon rallied, pushing Bitcoin back up to the $69,000 range on both Thursday and Friday. It was during this period that a report from the Wall Street Journal emerged, stating that the U.S. government had initiated an investigation into Tether, a claim that Tether has since denied. Regardless of the denial, the impact was immediate and severe—Bitcoin swiftly tumbled below $66K to $65,500 in a matter of moments. While it has since regained some ground, currently hovering around $67,000, the day’s volatility resulted in over $400 million in liquidations. Ultimately, this left Bitcoin’s market capitalization at $1.320 trillion, down 1.3% on the day, although its dominance against altcoins surged to 55.7% according to CoinGecko.
Altcoins Suffer Severe Losses
This tumultuous environment particularly affected altcoins, illustrated by the visible uptick in Bitcoin’s dominance. Major cryptocurrencies such as Ethereum, Binance Coin, Tron, Ripple, Bitcoin Cash, and Cardano endured losses ranging from 1% to 3.5% within the last 24 hours. The decline was even more pronounced for others—Solana (SOL), Dogecoin (DOGE), TON, Avalanche (AVAX), Chainlink (LINK), and Shiba Inu (SHIB) recorded losses up to 5.3%, with Shiba Inu posting notably painful declines.
Deeper slumps were experienced by lesser-known altcoins, with TIA plummeting 14%, closely followed by APT, MEW, KAS, AR, GALA, which all saw drops approximating 10%. JASMY wasn’t spared either, succumbing to a 9.5% decline.
Overall, the cryptocurrency market capitalization has now fallen to $2.37 trillion. This substantial drop of roughly $70 billion underscores the intense volatility currently gripping the market as traders navigate these uncertain waters.
In the wake of these dramatic market movements, one thing remains clear: volatility in the crypto space is persistent, and altcoins appear particularly vulnerable amidst Bitcoin’s fluctuations.
