In a stunning turn of events, the cryptocurrency market has been sent into a tailspin, with Bitcoin plummeting to 2024 lows of $41,600, shedding a staggering $80 billion in just 24 hours. The aftermath of the approval of the first US spot Bitcoin ETFs has been nothing short of tumultuous, leaving investors on edge and the market in disarray.
The highly volatile swings in the past 24 hours have not spared altcoins either. Major players like SOL, ADA, and AVAX have experienced substantial declines of 5-6%, amplifying the already tense atmosphere in the crypto space.
The week started with high anticipation as the US SEC was expected to greenlight the first spot Bitcoin ETFs in the country. While the approval did materialize on Wednesday, the journey was far from smooth. A hacking incident a day before, coupled with fake news, deleted and reposted statements, and controversial remarks from SEC Chairman Gary Gensler, injected a new level of uncertainty into the market.
This heightened volatility triggered multiple dramatic price movements in Bitcoin. Following the ETFs’ debut on US markets, Bitcoin initially surged to a 21-month peak, reaching over $49,000, only to crumble by $3,000 in a matter of minutes.
Friday brought a brief respite from the rollercoaster, but as US trading hours concluded, Bitcoin dipped below $41,600 for the second time in 2024. Presently, it has managed to regain some ground, hovering around $43,000. Nevertheless, its market cap has shrunk to $843 billion, with its dominance slipping to 50%, down from over 53% earlier in the week.
While the cryptocurrency market reels from Bitcoin’s volatility, altcoins have not emerged unscathed. Ethereum, often regarded as Bitcoin’s counterpart, has seen a more modest 2.6% dip, resting at $2,550. On the other hand, Binance Coin, Ripple, Dogecoin, and Toncoin have experienced declines of less than 5%.
However, the real brunt of the market turmoil is felt by altcoins like SOL, ADA, AVAX, MATIC, BCH, DOT, and ATOM, witnessing declines ranging from 5% to a significant 11% in the case of BCH.
The collective market cap of cryptocurrencies has witnessed a massive downturn, losing a staggering $80 billion in just one day, plummeting below $1.7 trillion on CMC. Investors and analysts alike are grappling with the implications of this sudden and substantial loss in market value.
As the crypto community navigates through these choppy waters, Ethereum, Binance Coin, Ripple, Dogecoin, and Toncoin stand out as relatively resilient players amidst the market turbulence.
The cryptocurrency landscape is inherently unpredictable, and the recent events surrounding Bitcoin and the broader market only reinforce this reality. Investors are now left to assess the fallout and ponder on the future trajectory of the market.
As the dust settles, eyes will be closely watching Bitcoin’s movements, assessing whether it can regain its footing and lead the market to recovery. Meanwhile, altcoins face the challenge of weathering the storm and proving their resilience in the face of market upheavals.
In conclusion, the cryptocurrency market is in the midst of a significant shakeup, with Bitcoin’s plunge to 2024 lows triggering a domino effect across the entire ecosystem. The coming days will reveal whether this is a temporary setback or the beginning of a more profound shift in the dynamics of the crypto space.
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