In the last 24 hours, the cryptocurrency market witnessed a new wave of instability: Bitcoin significantly decreased in price, while altcoins also showed negative dynamics.
Another Downtrend for Bitcoin
Despite brief spikes, Bitcoin has been on a noticeable downtrend in the past days. As *CryptoPotato* reported, the price consolidated around $86,000 over the weekend but began to decline again with the start of the business week. A few hours ago, BTC dropped to $80,000, causing multi-million dollar liquidations. However, it soon recovered to almost $84,000 according to CoinGecko. Enhanced volatility is expected to continue due to upcoming events like the latest US CPI report, which might trigger interest rate adjustments by the Federal Reserve. Such efforts have historically impacted BTC’s price.
Alts Turn Red, too
The altcoins have also turned red. Ethereum (ETH) fell to a multi-year low of $2,000, then recovered some losses, currently priced at $2,120. Cryptocurrencies like Ripple (XRP), Solana (SOL), Dogecoin (DOGE), Litecoin (LTC), and Toncoin (TON) also performed poorly. Pi Network (PI) continues to suffer, reaching $1.43, representing a 14% weekly decline. Among the top 100 cryptocurrencies, slight growth was shown by Ethena (ENA), Aave (AAVE), and Story (IP). The total cryptocurrency market capitalization currently stands at roughly $2.82 trillion, a 5% decrease for the day.
Cryptocurrency Market: Path to Stabilization
While the cryptocurrency market is characterized by significant volatility and uncertainty factors, investors continue to seek signals for medium- and long-term stabilization. Central banks and financial regulators worldwide keep monitoring these digital assets, given their potential impact on the global economic climate.
The cryptocurrency market remains susceptible to serious fluctuations caused by both internal and external economic factors. Given historical data and the current situation, market participants should remain vigilant and closely monitor developments.
