Cryptocurrency markets have experienced significant fluctuations during U.S. trading, surprising many investors.
Sharp Decline in Bitcoin Prices
The cryptocurrency markets started the day on a positive note, but the afternoon saw a sharp decline in Bitcoin’s price. In just a few hours, it fell from $106,500 to below $103,000. At the time of writing, Bitcoin had partially recovered some of its losses, trading around $103,200. Over the past 24 hours, its value decreased by approximately 1.2%.
Significant Declines in Altcoins
The market turmoil was not limited to Bitcoin alone. Other major cryptocurrencies also experienced noticeable losses. Ethereum’s value plummeted by 4.5% within just 90 minutes, falling to $2,372. During this time, Ethereum’s trading volume soared to nearly 800,000 ETH, about eight times the average hourly volume. Altcoins like Solana, Dogecoin, and Cardano saw their values decrease by 3 to 5% over the same time frame.
Unexpected Volatility and Macro Risks
No external cause was immediately identified preceding the sharp market fluctuations. U.S. stock markets showed only minor declines throughout the day. Analysts indicated that ongoing tensions between Israel and Iran remain a significant risk factor in the market. However, they stressed that the price movement did not occur due to any direct cause.
Cryptocurrency markets remain susceptible to unexpected price changes. Investors are advised to prepare for complex and sudden fluctuations while managing risks carefully.
