The price of Bitcoin has dropped to $54,190, with a low of $52,550 within the last 24 hours. The decline seems to have halted for now. BTC hit its lowest point just an hour after US markets closed, leading to greater losses in various altcoins.
Reasons for Bitcoin’s Decline
The primary cause of yesterday’s decline was the poor performance of US stock markets. While cryptocurrencies were grappling with issues such as Mt. Gox’s impact, the US markets were factoring in potential interest rate cuts. As the stock market reached all-time highs, negativity dominated the crypto space. Consequently, when stocks began to decline from their peaks, Bitcoin and other cryptocurrencies followed suit.
Factors Affecting the Market
Several factors contributed to the stock market’s decline. The first is the growing sentiment that the Federal Reserve may initiate the rate-cut process more slowly. Rapid rate cuts amid weak labor markets could trigger various economic problems. Additionally, the Bank of Japan’s potential to increase interest rates after 20 years poses a significant risk to high-risk assets.
Key Takeaways
– Bitcoin’s decline was closely linked to losses in the US stock markets.
– Slow rate-cut processes by the Fed and potential rate hikes by the Bank of Japan contributed to the market’s downturn.
– Altcoins experienced double-digit losses but began to recover as BTC rebounded.
– BTC’s market dominance rose to 55.9%, holding $53,724 as support.
– The total trading volume across exchanges hit $100 billion, indicating strong sales pressure.
Altcoins are beginning to recover from their double-digit losses as Bitcoin starts to bounce back. According to CMC data, Bitcoin’s market dominance has climbed to 55.9%, stabilizing at a support level of $53,724. While most altcoins lost value against Bitcoin, the total trading volume across all exchanges surged to $100 billion, reflecting the intensity of recent sales.
The last 24 hours saw significant losses for altcoins such as LDO, KCS, XMR, DOGE, TON, DYDX, OM, MKR, and Ether, all dropping by 5% or more. Only a few cryptocurrencies, including STRK, ONDO, TAO, BONK, and RENDER, showed slight gains. Notably, STRK rose by 14% over the last week.
Weekends traditionally suffer from low trading volumes, which can exacerbate losses in a declining market. The combination of a severely weakened risk appetite among investors and a nearly 3% market loss in the US suggests that a surprise rise in crypto prices over the next 48 hours is unlikely.