Bitcoin's price fell to $52,550 in the last 24 hours, pausing its decline at this level. The drop followed the closing of US stock markets, which triggered significant losses in altcoins.
Bitcoin Decline
Yesterday’s decline was mainly triggered by losses in the US stock markets. Cryptocurrencies, notably Bitcoin, were dealing with issues like Mt Gox, while US markets were pricing in upcoming interest rate cuts. As the stock market reached ATH levels, negativity prevailed in crypto. However, as stocks fell from their ATH, Bitcoin and others followed suit. The reasons for the decline in stocks are varied. The primary one is the growing belief that the Fed will start the rate cut process more slowly. With labor markets this weak, rapid cuts by the Fed could trigger different economic issues. Another significant risk is the potential for further rate hikes by the Bank of Japan, threatening risk assets.
Current State of Cryptocurrencies
Altcoins are recovering their double-digit losses as BTC starts to rebound. BTC’s market dominance climbed to 55.9%, according to CMC data, while holding $53,724 as support. Most altcoins lost value against BTC. Although the total volume across all exchanges reached $100 billion, it reflects the strength of these sales. The altcoins with the most losses in the last 24 hours were LDO, KCS, XMR, DOGE, TON, DYDX, OM, MKR, and Ether. They fell by 5% or more. Among the top 100 cryptocurrencies, STRK, ONDO, TAO, BONK, and RENDER showed slight gains. STRK rose by 14% in the last week.
Likely Weekend Scenarios
Weekends are notorious for low volume, which can lead to bigger surprise losses in a declining market. Due to factors like the severely weakened risk appetite of investors and the US markets closing the week with nearly a 3% loss, the chances of seeing a surprise rise in crypto over the next 48 hours are slim.
The decline in the US stock market has caused significant losses in cryptocurrencies, including Bitcoin, highlighting their high dependence on global economic factors. Investors should exercise caution and consider the current market volatility in their strategies.
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