Bitcoin dropped by more than $5,000 in hours and dumped to its lowest price point in roughly six months. The altcoins are also deep in the red, with Ethereum sliding below $4,000 and the entire market cap losing about $200 billion in a day.
Bitcoin Dumps to a 6-Month Low
After the past several days of gradually decreasing in value and calming around $42,000, the primary cryptocurrency finally initiated an impressive leg up. It shot up by $1,500 in hours and touched a multi-day high at $43,500.
As the bulls were preparing for another increase, the bears came to play and changed the landscape vigorously. Bitcoin started to lose value massively and dumped to $40,000. However, the worst was yet to come.
In the following hours, BTC lost that coveted resistance line and kept plunging. This time, it plummeted to $38,250, which became the lowest price level since August 5th, 2021.
Somewhat expectedly, this enhanced volatility caused pain for over-leveraged traders, with the liquidations rising above $700 million in a day.
As of now, the asset has recovered some ground and stands around $39,000. However, its market capitalization has suffered quite a bit and is now beneath $750 billion.
Altcoins in a Sea of Red
The altcoins also jumped in value yesterday, but as with bitcoin, it turned out to be a false breakout. As of now, the entire alt landscape is in red.
Ethereum touched $3,200 yesterday but an 8% slump has driven the second-largest cryptocurrency to under $2,900. Binance Coin (-8%), Cardano (-8%), Solana (-9%), Dogecoin (-7%), Avalanche (-9%), Shiba Inu (-7%), MATIC (-7%), and Ripple (-7%) are all well in the red on a daily scale.
NEAR Protocol and Algorand have lost even more value on a daily scale, dropping by 13% each.
Even more price losses are evident from SCRT (-20%), LRC (-15%), POKT (-14%), QNT (-14%), RUNE (-13%), Gala (-12%), AAVE (-11.5%), ZEC (-11.5%), and many others.
Ultimately, the cryptocurrency market capitalization went down by $200 billion from yesterday’s peak at $2.050 trillion to below $1.850 trillion.
PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.
Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.
Cryptocurrency charts by TradingView.