Cryptocurrency Market Sees Major Downturn as Bitcoin Falls Below $59,000

In a dramatic downturn, Bitcoin plummeted below the $59,000 mark during early U.S. trading hours on Sunday, extending a four-day market sell-off. Bitcoin (BTC) experienced a 4% decline over the past 24 hours, hitting a three-week low of $58,600. This slump affected major cryptocurrencies across the board, with Solana’s SOL and Dogecoin (DOGE) both seeing drops of over 9%. BNB Chain’s BNB, XRP, and Cardano’s ADA also suffered significant losses, each falling by at least 6%. Toncoin (TON) managed to fare slightly better, with a comparatively modest loss of 1.8%.

Ether (ETH) also faced a sharp decline, falling to $2,800 and erasing all gains made from its July peak of $3,400. This drop coincides with the recent approval and subsequent trading of spot ETH exchange-traded funds (ETFs) in the U.S. Despite initial excitement, these ETFs have seen net outflows on six of the nine trading days since their launch, accumulating a total net outflow of $510 million.

The broader market downturn has hit bullish futures bets hard, nearly $250 million lost in the past 24 hours. 

Market analysts had previously warned of a potential BTC drop to the $55,000 level, especially in light of ongoing geopolitical tensions in the Middle East and weakening sentiment towards risk assets, including technology stocks. This caution appears to be materializing as traders navigate a highly volatile and uncertain market environment.