Bitcoin has been on a wild ride in the past few days, with its price plummeting to $65,000 – a level last seen about a month ago. The asset bounced back to over $70,000 on Monday, only to drop again to $66,000 amid fears surrounding the US CPI numbers and the FOMC meeting. While bitcoin briefly spiked to $70,000 after the CPI beat expectations, it quickly fell back to $67,000 and hit a monthly low of $65,000 on Friday. Despite a slight recovery, bitcoin is still down 1.5% on the day, causing over $200 million worth of liquidations from nearly 75,000 traders in the past 24 hours.
Not only has bitcoin experienced volatility, but altcoins have also taken a hit. NEAR, FIL, and FET have seen the most significant drops, with other major altcoins like Solana, DOGE, SHIB, AVAX, DOT, and ADA following suit. However, TON and UNI have managed to buck the trend, seeing slight gains amidst the sea of red. The total crypto market cap has declined by about $50 billion overnight, reflecting the overall bearish sentiment in the market.
Bitcoin’s Market Dominance
Despite the sell-off in both bitcoin and altcoins, bitcoin’s dominance remains strong at slightly over 51%. This indicates that investors are still flocking to bitcoin as a safe haven asset during times of market uncertainty. However, the recent price fluctuations suggest that even bitcoin is not immune to the volatility that plagues the crypto market.
While some altcoins have managed to recover slightly from their lows, the overall sentiment in the market is still bearish. NEAR, FIL, FET, and AR have seen notable losses, signaling that investors are cautious about taking on additional risk in the current market environment. As the crypto market continues to be driven by speculation and market sentiment, it is essential for investors to exercise caution and conduct thorough research before making any investment decisions.
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